Q2 2024 Gerdau SA Earnings Call (English, Portuguese) Transcript
Key Points
- Gerdau SA (GGB) achieved a historically low accident frequency rate of 0.67, emphasizing its commitment to safety.
- The company has been proactive in supporting the Rio Grande do Sul region, contributing over BRL26 million to recovery efforts after heavy rains.
- Gerdau SA (GGB) became the first steel company certified as a B Corporation in North America, highlighting its sustainability efforts.
- The North America business division showed resilience, maintaining stable demand and a high backlog despite lower prices.
- Gerdau SA (GGB) is implementing cost reduction initiatives expected to lower its cost base by approximately BRL1.5 billion by 2025.
- The Brazilian steel market is facing challenges due to a high inflow of imported steel, impacting local performance.
- The South American market, particularly Argentina, is struggling with inflationary pressures and economic measures affecting steel demand.
- Gerdau SA (GGB) experienced BRL131 million in one-off costs related to the hibernation of some industrial units in Brazil.
- EBITDA margin decreased by 1.6 percentage points from the first quarter, affected by lower sales prices in North America.
- The company is facing uncertainties in the North American market due to upcoming presidential elections and economic dynamics.
Good morning, everyone, and welcome to Gerdau's video conference call for the Second Quarter of '24. I am Mariana Dutra, Head of Investor Relations, and participating in our video conference today are Gustavo Werneck, the CEO of Gerdau; and Rafael Japur, the CFO. We would like to remind you that the broadcast of this video conference is being done with simultaneous translation, and to choose your preferred language, simply click in the interpretation button via the globe icon at the bottom of the screen.
For those of you listening to the video conference in English, there is the option to mute your regional audio in Portuguese by clicking on mute original audio. During the company's presentation, all participants will have their microphones disabled. Later on, we will begin the Q&A session.
Analysts and investors may be able to join the queue via the Q&A button and can open their microphone and camera if they so prefer. The business prospects, projections, and targets contained in this presentation are based on the beliefs
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