Days after reporting its fourth quarter and year 2012
financial results on Mar 28,
Companhia Siderurgica Nacional
), or CSN came out with its outlook for year 2013.
The Brazilian steel maker anticipates iron ore production to be
roughly 29 million tons, very similar to the 2011 production
figure. Its results are likely to get affected by lower shipments
experienced in the first quarter 2013 due to a machine break down
at Casa de Pedra mine.
Talking of steel, CSN anticipates sales in 2013 to be roughly 6.2
million tons, a rise of 7% over 5.8 million tons in 2012. Of the
total, roughly 4.9 million tons or 79% sales are expected in the
domestic market. Capital spending for steel would amount to R$400
million in 2013.
On a consolidated basis, capital spending in year 2013 is
expected to be R$3.1 billion. CSN targets to spend roughly R$2.2
billion on expansion plans, including R$1 billion on
Transnordestina Logística and R$660 million on cement. The rest
R$900 million will be used as maintenance capex, including steel
In year 2012, CSN utilized roughly R$3,144.2 million including
among others, R$984 million spent on Transnordestina Logística,
R$381 million on expansion of Casa de Pedra mine and Itaguai
Port, R$454 million on construction of the long steel plant.
CSN is a $6.8 billion steelmaker and is considered to be one of
the best in Brazil. The stock currently holds a Zacks Rank #2
(Buy). Other stocks to watch out for in the industry are
Gibraltar Industries, Inc.
Shiloh Industries Inc.
), each with a Zacks Rank #1 (Strong Buy) and
Nippon Steel & Sumitomo Metal Corporation
), with a Zacks Rank #2 (Buy).
NIPPON STEEL CP (NSSMY): Get Free Report
GIBRALTAR INDUS (ROCK): Free Stock Analysis
SHILOH INDS INC (SHLO): Get Free Report
CIA SIDERUR-ADR (SID): Free Stock Analysis
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