|Bid||0.00 x 1000|
|Ask||3.86 x 27000|
|Day's range||3.64 - 3.80|
|52-week range||2.88 - 5.32|
|PE ratio (TTM)||N/A|
|Forward dividend & yield||0.05 (1.23%)|
|1y target est||7.40|
Gerdau's (GGB) first-quarter 2018 profitability gains from steel production and shipments as well as rise in steel price internationally. Fall in interest expenses aids the company.
Gerdau's (GGB) divestment of its North American assets, including two downstream facilities and one wire rod mill, is going to help it enhance profitability from the rest of the assets in the region.
Seasonal demand pick-up coupled with high lead times have positively impacted flat-rolled steel prices. It’s also worth noting that U.S. Steel (X) and AK Steel (AKS) took some of their flat-rolled capacity offline in 2015 in response to falling spot steel prices. Rebar prices have underperformed HRC (hot rolled coil) recently.
On the 4Q17 earnings call, ArcelorMittal’s (MT) CEO, Lakshmi Mittal, outlined a new capital allocation strategy. According to Mittal, “Mostly, we will continue to prioritize deleveraging, we believe that a net debt level of $6 billion with an appropriate target to sustain investment-grade rating metrics and support positive free cash flow even in the low point on the cycle. A few years back, ArcelorMittal set itself a medium-term net debt target of $15 billion.
Along with releasing its 2017 results, Kinross Gold (KGC) also announced an acquisition of two hydroelectric power plants in Brazil from a subsidiary of Gerdau (GGB). The rationale behind this acquisition is to secure long-term, low-cost power for its Paracatu mine in Brazil. This power should lower the overall production costs for the company’s Paracatu mine over its mine-life.
Kinross Gold (KGC) released its 4Q17 and 2017 results on February 14, after the market closed, and held a conference call with analysts on February 15. Kinross Gold stock dropped ~7% on February 15, underperforming the VanEck Vectors Gold Miners ETF (GDX), which fell just 1.0%. Goldcorp (GG) and Barrick Gold (ABX) also released their 4Q17 results on February 14 and held earnings calls the next day.
Gerdau's (GGB) divestment deal, related to two hydroelectric power plants in Goias with a business unit of Kinross Gold, will strengthen the company's core operations upon completion.
As we discussed previously, ArcelorMittal (MT) has submitted its bid for Essar Steel. The acquisition, if completed, will provide ArcelorMittal with a strong platform in India. Notably, ArcelorMittal doesn’t have a major presence in India.
Gerdau (GGB) is well poised to benefit from its diversified business structure that primarily includes crude steel production and iron ore mining activities.
Gerdau (GGB) has agreed to sell its U.S.-based rebar operations for $600 million. The deal, when completed, will help the company strengthen its core operations and lower its debt burden.
Gerdau's (GGB) third-quarter 2017 profitability benefited from higher revenues, fall in financial expenses and positive impact of exchange variations, partially offset by rise in cost of sales.
On a per-share basis, the Porto Alegre, Brazil-based company said it had profit of 3 cents. The steel producer posted revenue of $2.99 billion in the period. _____ This story was generated by Automated ...
Nucor was the S&P 500's top gainer on October 11, 2017. Nucor rose 3.6% and closed the day at $57.34—the highest close in two months.
The European Union has decided to set duties on hot-rolled steel from Brazil, Iran, Russia and Ukraine after a complaint by EU manufacturers that the product used for construction and machinery was being sold at excessively low prices. The EU will levy anti-dumping tariffs of between 17.6 and 96.5 euros ($20.6-112.8) per tonne from Saturday, its official journal said. The European Commission had initially proposed setting a minimum price - of 472.27 euros per tonne - but revised its proposal after failing to secure backing from EU member states.
To manage its debt burden, Gerdau S.A. (GGB) is set to divest its Chilean long steel industrial units for $154 million. It has also commenced a cash tender offer for $500 million worth of Bonds.