Gerdau SA announces Q1 consolidated information

Friday, 07 May 2010
Gerdau SA announced its first quarter consolidated information.

1st quarter of 2010 Highlights

Shipments reached 4.1 million tonnes in the 1Q10, 32% higher than in the 1Q09, mainly due to a recovery on sales for construction and industry in the Brazilian domestic market of Brazil Business Operation.

Net Revenue reached BRR 7.1 billion in the 1Q10, slightly higher than 1Q09, due to higher shipments, partially offset by the Real appreciation in the period.

1Q10 EBITDA reached BRR 1.4 billion, more than doubling the value recorded in the 1Q09. The EBITDA margin reached 20% in the 1Q10, compared to 9% in the 1Q09.

Net Income was BRR 573 million in the 1Q10, compared to BRR 35 million in the 1Q09.

Investments in fixed assets totaled BRR 233 million in the 1Q10.

Net Debt was BRR 10.1 billion on March, 31st 2010, representing 2.2x of the last twelve months EBITDA.

The Company approved a payment of dividend, in the form of interest on equity, of BRR 170 million (BRR 0.12/share), for Gerdau S.A. shareholders, and BRR 65 million (BRR 0.16/share) for Metalurgica Gerdau SA shareholders, based on the results of the 1Q10. The payment will be on May 27th, 2010.