sidpr2q16_6ka.htm - Generated by SEC Publisher for SEC Filing
 
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 

 
FORM 6-K/A
 
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934
 
For the month of November, 2016
Commission File Number 1-14732
 

 
COMPANHIA SIDERÚRGICA NACIONAL
(Exact name of registrant as specified in its charter)
 
National Steel Company
(Translation of Registrant's name into English)
 
Av. Brigadeiro Faria Lima 3400, 20º andar
São Paulo, SP, Brazil
04538-132
(Address of principal executive office)
 
Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F. 
Form 20-F ___X___ Form 40-F _______

 Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.  

Yes _______ No ___X____

 
 

São Paulo, November 14, 2016

 

2Q16 Earnings Release

 

 

Companhia Siderúrgica Nacional (CSN) (BM&FBOVESPA: CSNA3) (NYSE: SID) announces today its consolidated results for the second quarter of 2016 (2Q16), which are presented in Brazilian Reais and in accordance with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB), and with Brazilian accounting practices, which are fully convergent with international accounting norms, issued by the Accounting Pronouncements Committee (CPC) and approved by the Brazilian Securities and Exchange Commission (CVM), pursuant to CVM Instruction 485 of September 1, 2010. All comments presented herein refer to the Company’s 2Q16 consolidated results and comparisons refer to the first quarter of 2016 (1Q16) and the second quarter of 2015 (2Q15), unless otherwise stated. The Real/U.S. Dollar exchange rate was R$3.2092 on June 30, 2016 and R$3.5583 on March 31, 2016.

 

Highlights

2Q15

1Q16

2Q16

 

Change

 

2Q16  1Q16

2Q16  2Q15

 

Steel Sales (thousand t)

1,261

1,246

1,253

 

1%

-1%

- Domestic Market

60%

52%

53%

 

1%

-7%

- Overseas Subsidiaries

36%

42%

40%

 

-2%

4%

- Exports

4%

6%

7%

 

0%

3%

 

Iron Ore Sales (thousand t)1

5,987

8,295

9,267

 

12%

55%

- Domestic Market

1%

13%

7%

 

-5%

6%

- Exports

99%

87%

93%

 

5%

-6%

 

Consolidated Results (R$ Million)

       

 

 

 

 

 

 

Net Revenue

3,687

3,844

4,349

 

13%

18%

COGS

-2,847

-2,918

-3,427

 

17%

20%

Gross Profit

840

926

922

 

-0.4%

10%

SG&A Expenses

-421

-611

-498

 

-18%

18%

Adjusted EBITDA

801

733

855

 

17%

7%

 

Adjusted Net Debt

20,769

26,654

25,873

 

-3%

25%

Adjusted Cash Position

11,102

6,472

5,678

 

-12%

-49%

Net Debt / Adjusted EBITDA

5,6x

8,7x

8,3x

 

-0,4x

2,7x

 

 

1 Iron ore sales volumes include 100% of the stake in NAMISA until November 2015 and 100% of the stake in Congonhas Minérios as of December 2015.

² Adjusted EBITDA is calculated based on net income/loss, before depreciation and amortization, income taxes, the net financial result, results from investees, and other operating income (expenses) and includes the proportional share of the EBITDA of the jointly-owned investees MRS Logística and CBSI, as well as the Company’s 60% interest in Namisa, 33.27% in MRS and 50% in CBSI until November 2015 and stakes of 100% in Congonhas Minérios, 37.27% in MRS and 50% in CBSI as of December 2015.

³ Adjusted Net Debt and Adjusted Cash and Cash Equivalents included 33.27% of the stake in MRS, 60% of the interest in Namisa and 50% of the stake in CBSI until November 2015. As of December 2015, they included 100% of Congonhas Minérios, 32.27% of MRS and 50% of CBSI, excluding Forfaiting and drawee risk operations.

 

 

 

 

 

Closing Market Indicators on June 30, 2016

BM&FBovespa (CSNA3): R$7.82/share

Market Cap: R$10.850 billion (US$4.429 billion)

NYSE (SID): US$2.45/ADR (1 ADR = 1 share)

 

Total no. of shares = 1,387,524,047

 

For further information, please visit our corporate website: www.csn.com.br/ri

  

 
 

 

2Q16

RESULTS

 

 

CSN’s Consolidated Results

 

·         Net revenue totaled R$4,349 million in 2Q16, 13% up on 1Q16 and 18% more than in the same period last year. In relation to the previous quarter, the upturn was primarily due to increased sales volume in the mining segment and higher steel prices. Concerning 2Q15, the improvement was also due to the increase in mining sales volume.

 

·         COGS amounted to R$3,427 million, 17% up on the previous three months and 20% more than in 2Q15, chiefly due to higher iron ore output and increased costs as a result of the blast furnace #3 stoppage.

 

·         Second-quarter gross profit came to R$922 million, in line with 1Q16, with a gross margin of 21%, 3p.p. down on the first quarter. In relation to 2Q15, gross profit climbed by 10% and the gross margin narrowed by 2p.p., from 23% to 21%.

 

·         Selling, general and administrative expenses totaled R$498 million, 18% less than in 1Q16, but 18% higher year-on-year. These variations were largely due to distribution costs, which were 11% lower than in 1Q16, but 32% more than in the same quarter last year.

 

·         Other operating income (expenses) was a net expense of R$171 million in 2Q16, 35% up on the quarter before, due to the payment of provisioned taxes, and 23% down on 2Q15.  

 

·         Working capital came to R$2,359 million, R$718 million less than in 1Q16, while the financial cycle closed the second quarter at 77 days, 24 days less than in the previous quarter.

 

·         Adjusted net debt fell by 3% over 2Q16, totaling R$25,873 million, while leverage ended the quarter at 8.3x, versus 8.7x in the previous three months.

                                                                                                                                                                                                                                      

·         The proportional net financial result was negative by R$228 million in 2Q16, due to: i) financial expenses (excluding the exchange variation) of R$856 million; ii) the positive exchange variation result of R$478 million; and iii) financial revenue of R$150 million.

 

Financial Result (R$ million)

2Q15

1Q16

2Q16

Financial Result - IFRS

(772)

(943)

(204)

(+) Financial Result of Joint-Venture

(114)

(25)

(24)

(+) Namisa

(92)

-

-

(+) MRS

(22)

(25)

(24)

(=) Proporcional Financial Result1

(886)

(968)

(228)

Financial Revenues

58

251

150

Financial Expenses

(944)

(1,219)

(378)

Financial Expenses (ex-exchange rates variation)

(830)

(890)

(856)

Result with Exchange Rate Variation

(114)

(330)

478

Monetary and Exchange Rate Variation

82

949

1,220

Hedge Accounting

(82)

(566)

(595)

Notional Amount of Derivatives Contracted

(114)

(713)

(146)

 

¹ The proportional financial result considered stakes of 60% in Namisa, 33.27% in MRS and 50% in CBSI until November 2015 and stakes of

100% in Congonhas Minérios, 37.27% in MRS and 50% in CBSI as of December 2015.

 

 

 

 

 

For further information, please visit our corporate website: www.csn.com.br/ri

2

 

 
 

 

2Q16

RESULTS

 

·         CSN’s equity result was a positive R$18 million in 2Q16, versus a positive R$45 million in 1Q16 and a negative R$44 million in 2Q15, chiefly due to MRS’s equity result, which fell from R$61 million, in 1Q16, to R$32 million, as shown below:

 

Share of profits (losses) of investees (R$ million)

2Q15

1Q16

2Q16

Namisa

(49)

-

-

MRS Logística

24

61

32

CBSI

-

1

-

TLSA

(7)

(7)

(4)

Arvedi Metalfer BR

(3)

-

-

Eliminations

(9)

(11)

(10)

Share of profits (losses) of investees

(44)

45

18

 

·         CSN recorded a second-quarter net loss of R$43 million, versus net losses of R$831 million and R$615 million in 1Q16 and 2Q15, respectively. The improvement was primarily due to the recovery of the financial result, which was negative by R$204 million in 2Q16, versus R$943 million negative in 1Q16 and R$772 million negative in 2Q15.

 

Adjusted EBITDA (R$ million)

2Q15

1Q16

2Q16

Change

2Q16  x  1Q16

2Q16  2Q15

Profit (loss) for the Period

(615)

(831)

(43)

(95%)

(93%)

Depreciation

279

310

304

(2%)

9%

Income Tax and Social Contribution

(5)

122

110

(10%)

-

Finance Income

772

943

204

(78%)

(74%)

 

EBITDA (ICVM 527)

431

544

576

6%

34%

 

Other Operating Income (Expenses)

223

127

171

35%

(23%)

Share of Profit (Loss) of Investees

44

(45)

(18)

(59%)

-

Proportionate EBITDA of Joint Ventures

104

107

126

18%

22%

 

Adjusted EBITDA1

801

733

855

17%

7%

 

¹ The Company discloses adjusted EBITDA excluding interests in investments and other operating revenue (expenses) in the belief that these items should not be considered when calculating recurring operating cash flow.

 

·         Adjusted EBITDA amounted to R$855 million in 2Q16, 17% up on the quarter before and 7% more than in 2Q15, accompanied by an adjusted EBITDA margin of 18.7%, 0.6p.p. higher than in 1Q16, but 1.5p.p. down on 2Q15.

Adjusted EBITDA (R$ million) and Adjusted EBITDA Margin (%)

¹ The adjusted EBITDA margin is calculated as the ratio between Adjusted EBITDA and Adjusted Net Income, which considers stakes of 60% in Namisa, 33.27% in MRS and 50% in CBSI until November 2015 and stakes of 100% in Congonhas Minérios, 37.27% in MRS and 50% in CBSI as of December 2015.

 

 

For further information, please visit our corporate website: www.csn.com.br/ri

3

 

 
 

 

2Q16

RESULTS

 

Debt

 

The adjusted amounts of EBITDA, Debt and Cash included the stakes of 60% in Namisa, 33.27% in MRS and 50% in CBSI until November 2015 and the stakes of 100% in Congonhas Minérios, 37.27% in MRS and 50% in CBSI as of December 2015, as well as financial investments used as collateral for exchange operations on the BM&FBovespa. On June 30, 2016, consolidated net debt totaled R$25,873 million, while the net debt/EBITDA ratio stood at 8.28x, based on LTM adjusted EBITDA.

 

 

Indebtedness (R$ million) and Net Debt/Adjusted EBITDA (x)

  

 

Foreign Exchange Exposure

 

In 2Q16, CSN began reviewing its FX hedge strategy, which led the company to completely unwind it FX derivatives position. As a result, the FX exposure of our consolidated balance sheet on June 30, 2016 was US$1,791 million, as shown in the table below. It is important to mention that the net FX exposure includes a liability totaling US$1.0 billion in the Loans and Financing line related to the Perpetual Bonds, which, due to its nature, will not require disbursements for the settlement of the principal amount in the foreseeable future. The company’s hedge strategy began to focus on preserving its cash flow, replacing the exposure generated by the settlement of the derivatives for new Hedge Accounting designations, capturing the existing natural relations, as well as possibly using other financial instruments to protect CSN's future cash flow.

 

The hedge accounting adopted by CSN correlates the projected export inflows in dollars with part of the scheduled debt payments in the same currency. Therefore, the exchange variation of the dollar-denominated debt is temporarily booked in shareholders’ equity, flowing through P&L when revenues in USD from exports occur.

 

 

 

 

 

 

 

 

 

 

For further information, please visit our corporate website: www.csn.com.br/ri

4

 

 
 

 

2Q16

RESULTS

 

Foreign Exchange Exposure

IFRS

(US$ Million)

03/31/2016

06/30/2016

Cash and cash equivalents overseas

1,288

802

Accounts receivables

321

317

Total assets

1,610

1,119

Borrowings and financing

(4,466)

(4,437)

Accounts Payable

(7)

(6)

Other liabilities

(6)

(7)

Total liabilities

(4,479)

(4,450)

 

Foreign exchange exposure

(2,870)

(3,332)

Notional amount of derivatives contracted, net

1,435

-

Cash flow hedge accounting

1,549

1,541

Net foreign exchange exposure

115

(1,791)

Bond Perpértuo

1,000

1,000

Exposição Cambial Líquida ex. Bond Perpétuo

1,115

(791)

 

Capex

 

CSN invested R$473 million in 2Q16, led by:

 

·         Investments in the new clinker kiln in Arcos-MG, which will  starts its operation in the 2H16, allowing  the cement segment to generate competitive margins and scale gains in the Southeast region due to self-sufficiency in clinker production;

 

·         Projects designed to improve the operational and environmental performance of the Presidente Vargas Plant.

 

Of total investments, R$17 million went to spare parts and R$180 million to current investments.

 

Investment (R$ million)

2Q15

1Q16

2Q16

Steel

159

119

136

Mining

296

62

61

Cement

92

139

261

Logistics

13

10

13

Others

4

0

3

Total Investment IFRS

564

330

473

 

Working Capital

 

In order to calculate working capital, CSN adjusts its assets and liabilities as shown below:

                                                                                                                                                                                               

·         Accounts Receivable: Excludes Dividends Receivable, Advances to Employees and Other Credits (Note 5 of the financial statements);

·         Inventories: Includes Estimated Losses and excludes Spare Parts, which is not part of the cash conversion cycle, and will be subsequently booked under Fixed Assets when consumed. (Note 6 of the financial statements);

·         Recoverable Taxes: Composed only of Income (IRPJ) and Social Contribution (CSLL) Taxes included in Recoverable Taxes (Note 7 of the financial statements);

·         Taxes Payable: Composed of Taxes Payable under Current Liabilities plus Taxes in Installments (Note 13 of the financial statements);

·         Advances from Clients: Subaccount of Other Liabilities recorded under Current Liabilities (Note 13 of the financial statements);

·         Suppliers: Includes Forfaiting and Drawee Risk (Note 11 of the financial statements).

 
 

 

For further information, please visit our corporate website: www.csn.com.br/ri

5


 
 

 

2Q16

RESULTS

 

As a result, working capital applied to the Company’s business totaled R$2,359 million in 2Q16, R$718 million less than in 1Q16, chiefly due to the R$626 million reduction in inventories and the R$154 million reduction in suppliers. On a same comparison basis, the average receivable period fell by 5 days, while payment periods and inventory turnover fell by 8 and 27 days, respectively.

 

Working Capital (R$ million)

2Q15

1Q16

2Q16

 

Change

 

2Q16  1Q16

2Q16  2Q15

 

Assets

5,698

5,664

4,804

 

(860)

(894)

 

Accounts Receivable

1,936

1,746

1,622

 

(125)

(314)

Inventories Turnover

3,583

3,621

2,995

 

(626)

(588)

Advances to Taxes

178

298

186

 

(112)

8

Liabilities

2,445

2,587

2,444

 

(143)

(1)

 

Suppliers

1,807

1,542

1,388

 

(154)

(419)

Salaries and Social Contribution

322

245

262

 

17

(60)

Taxes Payable

286

733

743

 

11

457

Advances from Clients

30

67

51

 

(16)

21

Working Capital

3,253

3,077

2,359

 

(718)

(894)

Turnover Ratio (days)

2Q15

1Q16

2Q16

 

Change

 

2Q16  1Q16

2Q16  2Q15

 

Receivables

38

36

31

 

(5)

(7)

Supplier Payment

54

48

40

 

(8)

(14)

Investory Turnover

110

113

86

 

(27)

(24)

Cash Conversion Cycle

94

101

77

 

(24)

(17)

 

Results by Segment

 

The Company maintains integrated operations in five business segments: steel, mining, logistics, cement and energy, The main assets and/or companies comprising each segment are presented below:

 

     

 

¹ Namisa’s former assets.

² As of 2013, the Company ceased the proportional consolidation of its jointly-owned subsidiaries Namisa, MRS and CBSI, For the purpose of preparing and presenting the information by business segment, Management opted to maintain the proportional consolidation of its jointly-owned subsidiaries, as historically presented, For the reconciliation of CSN’s consolidated results, these companies’ results are eliminated in the "corporate/elimination expenses" column.

³ In order to report the Company’s 2015 results, after the combination of CSN’s mining assets (Casa de Pedra, Namisa and Tecar), the consolidated result includes all this new company’s information.

 

 

 

 

For further information, please visit our corporate website: www.csn.com.br/ri

6

 

 
 

 

2Q16

RESULTS

 

Net revenue per Segment – 2Q16 (R$ million)

 

 

Adjusted EBITDA by Segment – 2Q16 (R$ million)

 

 


 

 

 

Results 2Q16

Steel

Mining

Logistics (Port)

Logistics (Railways)

Cement

Energy

Corporate/ Eliminations

Consolidated

(R$ million)

               

Net Revenue

2,878

1,1801

45

337

109

66

(266)

4,349

Domestic Market

1,607

77

45

337

109

66

(451)

1,790

Foreign Market

1,271

1,103

-

-

-

-

185

2,559

Cost of Goods Sold

(2,459)

(907)1

(34)

(227)

(102)

(48)

350

(3,427)

Gross Profit

419

273

11

111

7

18

84

922

Selling, General and Administrative Expenses

(214)

(13)

(3)

(27)

(17)

(6)

(219)

(498)

Depreciation

164

105

3

56

17

4

(47)

304

Proportional EBITDA of Jointly Controlled Companies

-

-

-

-

-

-

126

126

Adjusted EBITDA

369

365

11

141

7

16

(55)

855

 

 

 

 

 

 

For further information, please visit our corporate website: www.csn.com.br/ri

7


 
 

 

2Q16

RESULTS

 

Results 1Q16

Steel

 

Mining

 

Logistics (Port)

 

Logistics (Railways)

 

Cement

 

Energy

 

Corporate/ Eliminations

 

Consolidated

(R$ million)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Revenue

2,809

 

7771

 

50

 

303

 

114

 

68

 

(279)

 

3,844

Domestic Market

1,500

 

151

 

50

 

303

 

114

 

68

 

(475)

 

1,712

Foreign Market

1,309

 

626

 

-

 

-

 

-

 

-

 

196.7

 

2,132

Cost of Goods Sold

(2,300)

 

(585)1

 

(36)

 

(214)

 

(101)

 

(51)

 

370

 

(2,918)

Gross Profit

509

 

192

 

14

 

89

 

13

 

17

 

91

 

926

Selling, General and Administrative Expenses

(255)

 

(24)

 

(8)

 

(24)

 

(18)

 

(6)

 

(276)

 

(611)

Depreciation

166

 

114

 

3

 

56

 

13

 

4

 

(47)

 

310

Proportional EBITDA of Jointly Controlled Companies

-

 

-

 

-

 

-

 

-

 

-

 

107

 

107

Adjusted EBITDA

420

 

283

 

9

 

121

 

8

 

15

 

(124)

 

733

 

¹ See comment in the adjustment to the mining result item.

 

 

·         During 2Q16, the mining result was impacted by an accounting elimination adjustment, amounting R$164 million, in the 1Q16 net revenue and COGS accounts, without influence in the mining EBITDA of both quarters. The following mining segment analysis will use the adjusted values. For comparison purposes, the value was adjusted in the 1Q16 and 2Q16 results as shown below:

 

R$ million

1Q16

2Q16

Book Value

Var.

Adjusted

Book Value

Var.

Adjusted

Net Revenues

777

164

941

1,180

(164)

1,016

COGS

585

164

749

907

(164)

743

EBITDA

283

-

283

365

-

365

EBITDA Margin

36%

-6p.p.

30%

31%

5p.p.

36%

 

 

Steel

 

According to preliminary figures from the World Steel Association (WSA), global crude steel production totaled 795 million tonnes in the first half, 2% down on the same period last year .

 

According to the Brazilian Steel Institute – IABr (also preliminary figures), domestic production came to 7.4 million tonnes in 2Q16, in line with the previous three months, giving a first-half total of 14.9 million tonnes, 13% down year-on-year, Domestic production of rolled products stood at 5.1 million tonnes in the second quarter, also in line with 1Q16, and 10.2 million tonnes in the first six months, 14.7% less than in 1H15, Apparent consumption through June totaled 9.0 million tonnes, 23.7% less than in 1H15, with domestic sales of 8.2 million tonnes, down by 15.5%, In the same period, imports dropped by 64.2% to 741,300 tonnes, while exports climbed by 16.6% to 6.7 million tonnes.

 

According to INDA (the Brazilian Steel Distributors’ Association), 2Q16 steel purchases and sales by distributors fell by 11.3% and 7.7% over 2Q15 to 1,503,000 and 1,559,000 tonnes, respectively, Inventories closed the quarter at 866,000 tonnes, 1.4% down on the previous month, representing 3.3 months of sales.

 

Automotive

 

According to ANFAVEA (the Auto Manufacturers’ Association), vehicle production totaled 1 million units in the first half, 21% down on 1H15, In the same period, new car, light commercial vehicle, truck and bus licensing fell by 25% to 983,000 units, The association estimates a reduction in vehicle sales of up to 19% in 2016 over 2015, to 2.1 million units, while FENABRAVE (the Vehicle Distributors’ Association) expects a 15% reduction in vehicle sales.

 

 

 

 

 

For further information, please visit our corporate website: www.csn.com.br/ri

8


 
 

 

2Q16

RESULTS

 

Construction

 

According to SECOVI-SP (the São Paulo Residential Builders’ Association), residential real estate launches in the city of São Paulo totaled 5,731 units in the 1H16, 42.8% down on the 10,027 units launched in the same period last year.

 

According to ABRAMAT (the Construction Material Manufacturers’ Association), first-half sales of building materials fell by 14.3% over 1H15, The association also revised its 2016 estimate a decline of 8%.

 

Home Appliances

 

According to the Brazilian Institute of Geography and Statistics (IBGE), home appliance production in the first five months fell by 11% over the same period last year and by 17% in the last 12 months, respectively, reflecting the low level of business and consumer confidence.

 

Results from CSN’s Steel Operations

 

The parent company’s slab production totaled 500,000 tonnes in 2Q16, 40% and 55% down on 1Q16 and 2Q15, respectively, while flat rolled steel output came to 668,000 tonnes, 11% and 35% less than in 1Q16 and 2Q15, respectively. These results can be explained chiefly by the blast furnace #3 stoppage, which was inoperable by 22 days. 

 

Flat Steel Production (Parent Company)

2Q15

1Q16

2Q16

Change

(Thousand tonnes)

2Q16

x

1Q16

2Q16

x

2Q15

Total Slabs (UPV + Third Parties)

1,188

835

510

(39%)

(57%)

Crude Steel Production

1,119

835

500

(40%)

(55%)

Third Parties Slabs

69

0

10

-

(85%)

Total Rolled Products

1,032

746

668

(11%)

(35%)

 

·         Total steel product sales volume came to 1,253,000 tonnes in 2Q16, 7% up on 1Q16, Of this total, 53% went to the domestic market, 40% were sold by our subsidiaries abroad and 7% went to exports.

 

 

 

 

·         Second-quarter domestic steel sales totaled 669,000 tonnes, 3% up on 1Q16, 626,000 tonnes of which flat steel and 43,000 tonnes long steel.

 

 

 

 

·         Second-quarter foreign sales amounted to 584,000 tonnes, 2% down on 1Q16. Of this total, the overseas subsidiaries sold 499,000 tonnes, 178,000 of which by LLC, 219,000 by SWT and 103,000 by Lusosider, while direct exports came to 85,000 tonnes.

 

 

 

 

·         In 2Q16, CSN increased its share of coated products as a percentage of total sales volume, in line with its strategy of adding more value to the product mix. Total sales of coated products such as galvanized items and tin plate accounted for 60% of flat steel sales, versus 58% in the previous quarter. In the foreign market, the share of coated products moved up from 77% to 85% in the same period.

 

  

 

 

 

For further information, please visit our corporate website: www.csn.com.br/ri

9


 
 

 

2Q16

RESULTS

 

·         Net revenue totaled R$2,878 million in 2Q16, 2% up on 1Q16, primarily due to the upturn in sales volume and higher prices in the domestic market. Average net revenue per tonne stood at R$2,224.

 

 

·         COGS came to R$2,459 million in 2Q16, 7% more than in the previous three months, as a result of the reduction in fixed production cost dilution.

 

 

·         The parent company’s production cost reached R$1,085 million in 2Q16, 19% down on 1Q16, due to the reduction in period output, due to the maintenance of blast furnace #3.

 

 

·         Slab production costs came to R$1,273/t, 20% higher than in 1Q16, also due to the stoppage of blast furnace #3. In US dollars, the cost increased by 26%, from US$274/t, in 1Q16, to U$345/t.  

 

·         Adjusted EBITDA amounted to R$369 million in 2Q16, 12% down on the R$420 million recorded in the quarter before, accompanied by a 2p,p, reduction in the adjusted EBITDA margin from 15% to 13%.

 

 

 

 

Mining

 

In 2Q16, the seaborne iron ore market was influenced by the recovery in demand for steel in China. Policies to stimulate the economy ensured ample available credit, encouraging a recovery in the real estate market and construction activities; on the tax side, we noticed an increase in investments in infrastructure. In addition, low steel inventories throughout the production chain limited immediate delivery availability and positively pressured prices. In response to encouraged demand and fueled by the higher margins, steelmakers increased output by 9%, the highest quarter-on-quarter increase in more than three years. As a result, iron ore demand grew and the commodity’s price averaged US$55.66/dmt (Platts, Fe62%, N. China) in 2Q16, 15% up on 1Q16.

 

Maritime freight costs on Route CI-C3 (Tubarão-Qingdao) averaged US$8.43/t in 2Q16, 48% up on 1Q16. The route was positively impacted by a seasonal increase in transported volume by of capesize vessel and higher fuel prices.

 

 

For further information, please visit our corporate website: www.csn.com.br/ri

10

 

 

 
 

 

2Q16

RESULTS

 

Results from CSN’s Mining Operations

 

·         In 2Q16, iron ore production totaled 8,537,000 tonnes, 17% and 26% up on 1Q16 and 2Q15, respectively.

 

·         Second-quarter iron ore purchases came to 1,376,000 tonnes, 123% up on the previous quarter and 40% more than in 2Q15, as the Company took advantage of market opportunities.

 

·         Iron ore sales came to 9,267,000 tonnes in 2Q16, 12% and 26% up on 1Q16 and 2Q15, respectively, thanks to sales volume to third parties. Shipped iron ore volume totaled 9,218,000 tonnes, 32% more than in 1Q16 and 47% up on 2Q15. Around 695,000 tonnes from Congonhas Minérios were sold to CSN’s the Presidente Vargas Plant.

 

Production Volume and Mining Sales

2Q15

1Q16

2Q16

Variação

(thousand t)

2Q16

x

1Q16

 

2Q16

x

2Q15

Iron Ore Production¹

6,767

7,326

8,537

17%

 

26%

Third Parties Purchase

993

617

1,376

123%

 

39%

Total Production + Purchase

7,760

7,943

9,913

25%

 

28%

                     

UPV Transfer and Sale2

1,380

1,047

695

(34%)

 

(50%)

Third Parties Sales Volume

5,987

7,248

8,572

18%

 

43%

Total Sales + Transfer2

7,367

8,295

9,267

12%

 

26%

 

 

 

 

 

 

 

 

 

 

 

Shipped Volume

6,266

6,988

9,218

32%

 

47%

 

¹ Production and sales volumes include 100% of the stake in NAMISA until November 2015 and 100% of the interest in Congonhas in December 2015.

2 As of December 2015, Congonhas Minérios began selling iron ore to the Presidente Vargas Plant.

 

·           Net revenue from mining operations totaled R$1,016 million in 2Q16, 8% up on 1Q16 and 49% more than in 2Q15 1Q15. The upturns in both periods were due to higher total iron ore sales volume, which came to 9,267 thousand tonnes this quarter.

 

·           Mining segment COGS came to R$743 million, in line with 1Q16 and 37% up on 2Q15, due to the higher volume of iron ore sold and higher purchases from third parties. In 2Q16, Congonhas Minérios recorded a Chinese delivery cost excluding depreciation of US$28.2/wmt, 10% down on the previous quarter, mainly due to a reduction in the mine’s production costs and in seaborne freight charges.

 

·          Adjusted EBITDA stood at R$365 million in 2Q16, 29% and 60% up on 1Q16 and 2Q15, respectively, with an adjusted EBITDA margin of 36%, chiefly due to the increase in FOB export prices and reductions in production cost and seaborne freight.

 

 

Casa de Pedra Iron Ore Cost Excluding Depreciation

(US$/wmt delivered to China)

 

 

 

 

 

 

For further information, please visit our corporate website: www.csn.com.br/ri

11

 

 
 

 

2Q16

RESULTS

 

Logistics

 

Results from CSN’s Logistics Operations

 

Railway Logistics: In 2Q16, net revenue came to R$337 million, generating EBITDA of R$141 million and an EBITDA margin of 42%.

 

Port Logistics: In the second quarter, Sepetiba Tecon handled 32,000 containers, in addition to 197,000 tonnes of steel products and 1,000 tonnes of general cargo. Net revenue totaled R$45 million, generating EBITDA of R$11 million, accompanied by an EBITDA margin of 24%.

 

 

Sepetiba TECON Highlights

2Q15

1Q16

2Q16

Change

2Q16

x

1Q16

2Q16

x

2Q15

Containers Volume (thousand units)

30

39

32

(19%)

4%

Steel Products Volume (thousand t)

221

143

197

38%

(11%)

General Cargo Volume (thousand t)

44

12

1

(95%)

(99%)

 

 

Cement

 

 

According to the IBGE’s Monthly Industrial Survey (PIM-PF), Brazil’s cement production fell by 14.2% year-on-year in 2Q16, in line with the performance of the construction industry.

 

Preliminary figures from SNIC (the Cement Industry Association) indicate domestic cement sales of 28 million tonnes in the first half of 2016, 14% less than in the same period the year before. For 2016 as a whole, SNIC estimates respective annual declines of 12% to 15% in sales and 9% to 11% in apparent consumption.

 

Results of CSN’s Cement Operations

 

In 2Q16, cement sales amounted to 594,000 tonnes, 4% up on 1Q16, while net revenue came to R$109 million. EBITDA totaled R$7 million, accompanied by an EBITDA margin of 6%.

 

Cement Highlights

2Q15

1Q16

2Q16

Change

(thousand t)

2Q16

x

1Q16

2Q16

x

2Q15

Total Production

577

531

606

14%

5%

Total Sales

579

571

594

4%

3%

 

Energy

 

According to the Energy Research Company (EPE), Brazilian electricity consumption totaled 231 TWh in 1H16, 1.7% less than in the first six months of 2015. Consumption in the industrial and commercial segments fell by 5.3% and 1.5%, respectively, while residential consumption climbed by 1.2%.

 

Results from CSN’s Energy Operations

 

In 2Q16, net revenue from energy operations totaled R$66 million, EBITDA stood at R$16 million and the EBITDA margin came to 25%.

 

 

 

 

For further information, please visit our corporate website: www.csn.com.br/ri

12


 
 

 

2Q16

RESULTS

Capital Market

 

CSN’s shares appreciated by 9% in 2Q16, while the Ibovespa increased by 1% in the same period. Daily traded volume on the BM&FBovespa averaged R$88.9 million. On the New York Stock Exchange (NYSE), CSN’s American Depositary Receipts (ADRs) moved up by 24%, versus the Dow Jones’ 1% appreciation. On the NYSE, daily traded volume of CSN’s ADRs averaged US$7.1 million.

 

2Q16

Number of shares in thousand

1,387,524

Market Capitalization

 

Closing price (R$/share)

7.82

Closing price (US$/ADR)

2.45

Market Capitalization (R$ million)

10,850

Market Capitalization (US$ million)

3,399

Total return including dividends and interest on equity

 

CSNA3

9%

SID

24%

Ibovespa

1%

Dow Jones

1%

Volume

 

Average daily (thousand shares)

9,602

Average daily (R$ Thousand)

88,913

Average daily (thousand ADRs)

2,635

Average daily (US$ Thousand)

7,111

Source: Bloomberg

 

 

 

 

 

 

 

 

 
 

For further information, please visit our corporate website: www.csn.com.br/ri

13


 
 

 

2Q16

RESULTS

 

 

Restatement of the Quarterly Financial Information for the six-month period ended June 30, 2016

 

The Company voluntarily restated its financial statements for the fiscal year ended December 31, 2015 due to a change in the interpretation of the application of the Technical Pronouncement CPC 15/ IFRS 3 in the period after the publication of these financial statements, as required by the accounting pronouncement CPC23/IAS8.

 

The change in the interpretation of the CPC/IFRS was identified by reassessing the events triggered by the inquiries made by the Securities Exchange Commission (SEC) on the accounting procedure for the presentation of the non-controlling interests of the subsidiary Congonhas Minérios in the Company’s consolidated financial statements.

 

The restatement did not change the Company’s consolidated results, as well as net equity, and was only a relocation between line items. The adjustments that generated the restatement of the financial statements for the fiscal year ended December 31, 2015, the initial balances for the six-month period ended June 30, 2016, are detailed in those restated financial statements.

 

The tables below show the impacts in the balances as of December 31, 2015 and June 30, 2016 between line items of our shareholders’ equity:

 

December 31, 2015

 

 

As presented

 

Reclassifications

 

Restated

Issuel capital

 

4,540,000

 

 

 

4,540,000

Capital reserves

 

30

     

30

Earnings reserves

 

2,104,804

 

359,897

 

2,464,701

Legal reserve

 

424,536

 

17,995

 

442,531

Statutory reserve

 

1,895,494

 

256,426

 

2,151,920

Earnings reserves to realize

 

23,750

 

85,476

 

109,226

Treasury shares

 

(238,976)

 

 

 

(238,976)

Other comprehensive income

 

1,019,913

 

(359,897)

 

660,016

Shareholders' equity attributed to controlling interest

 

7,664,747

 

 

 

7,664,747

Non-controlling interest

 

1,070,916

     

1,070,916

Total shareholders' equity

 

8,735,663

 

 

 

8,735,663

             

June 30, 2016

 

 

As presented

 

Reclassifications

 

Restated

Issued Capital

 

4,540,000

 

 

 

4,540,000

Capital reserves

 

30

     

30

Earnings reserves

 

2,104,804

 

359,897

 

2,464,701

Legal reserve

 

424,536

 

17,995

 

442,531

Statutory reserve

 

1,895,494

 

256,426

 

2,151,920

Earnings reserves to realize

 

23,750

 

85,476

 

109,226

Treasury shares

 

(238,976)

 

 

 

(238,976)

Loss for the period

 

(893,927)

     

(893,927)

Other comprehensive income

 

1,828,190

 

(359,897)

 

1,468,293

Shareholders' equity attributed to controlling interest

 

7,579,097

     

7,579,097

Non-controlling interest

 

1,090,229

 

 

 

1,090,229

Total shareholders' equity

 

8,669,326

     

8,669,326

 

For further information, please visit our corporate website: www.csn.com.br/ri

14


 

 

 

 

2Q16

RESULTS

 

 

Webcast – Earnings Release

Investor Relations Team

Conference Call in Portuguese with Simultaneous Translation into English

November 14, 2016 – Monday

11:00 a.m. – Brasília time/08:00 a.m. – US EST

Phone: +55 (11) 2188-0155 (Brazil)

+1 646 843-6054 (USA)

Conference ID: CSN

Webcast: www.csn.com.br/ir

 

IR Executive OfficerDavid Moise Salama

Rodrigo Bonsaver (rodrigo.bonsaver@csn.com.br)

Lucas Aparecida (lucas.aparecida@csn.com.br)

 

 

Certain of the statements contained herein are forward-looking statements, which express or imply results, performance or events that are expected in the future. These include future results that may be implied by historical results and the statements under ‘Outlook’. Actual results, performance or events may differ materially from those expressed or implied by the forward-looking statements as a result of several factors, such as the general and economic conditions in Brazil and other countries, interest rate and exchange rate levels, protectonist measures in the U.S., Brazil and other countries, changes in laws and regulations and general competitive factors (on a global, regional or national basis).

 
 
 
 

 

For further information, please visit our corporate website: www.csn.com.br/ri

16


 
 

 

2Q16

RESULTS

 

INCOME STATEMENT

CONSOLIDATED – Corporate Law (In thousand of R$)

 

2Q15

1Q16

2Q16

Net Revenues

3,687,140

3,843,803

4,349,346

Domestic Market

1,977,518

1,712,078

1,790,236

Foreign Market

1,709,622

2,131,725

2,559,110

Cost of Goods Sold (COGS)

(2,847,095)

(2,917,758)

(3,426,907)

COGS, excluding depreciation

(2,574,062)

(2,613,847)

(3,128,404)

Depreciation allocated to COGS

(273,033)

(303,911)

(298,503)

Gross Profit

840,045

926,045

922,439

Gross Margin (%)

23%

24%

21%

Selling Expenses

(309,014)

(448,147)

(391,930)

General and Administrative Expenses

(106,580)

(156,460)

(100,734)

Depreciation allocated to SG&A

(5,647)

(5,925)

(5,749)

Other operation income (expense), net

(223,016)

(126,560)

(171,181)

Share of profits (losses) of investees

(43,822)

44,979

18,428

Operational Income before Financial Results

151,966

233,932

271,273

Net Financial Results

(771,695)

(943,014)

(204,483)

Income before social contribution and income taxes

(619,729)

(709,082)

66,790

Income Tax and Social Contribution

5,136

(122,210)

(109,505)

Profit/(Loss) for the period

(614,593)

(831,292)

(42,715)

 

INCOME STATEMENT

PARENT COMPANY – Corporate Law (In thousand of R$)

 

2Q15

1Q16

2Q16

Net Revenues

2,870,847

1,977,640

2,191,674

Domestic Market

1,868,525

1,567,201

1,660,652

Foreign Market

1,002,322

410,439

531,022

Cost of Goods Sold (COGS)

(2,267,849)

(1,638,396)

(1,906,666)

COGS, excluding depreciation

(2,053,576)

(1,506,928)

(1,770,966)

Depreciation allocated to COGS

(214,273)

(131,468)

(135,700)

Gross Profit

602,998

339,244

285,008

Gross Margin (%)

21%

17%

13%

Selling Expenses

(146,352)

(166,823)

(135,798)

General and Administrative Expenses

(88,732)

(121,013)

(70,168)

Depreciation allocated to SG&A

(3,954)

(4,057)

(3,997)

Other operation income (expense), net

(196,380)

(99,702)

(85,196)

Share of profits (losses) of investees

(325,073)

(487,079)

(346,657)

Operational Income before Financial Results

(157,493)

(539,430)

(356,808)

Net Financial Results

(555,237)

(267,878)

380,363

Income before social contribution and income taxes

(712,730)

(807,308)

23,555

Income Tax and Social Contribution

98,462

(29,382)

(80,792)

Profit/(Loss) for the period

(614,268)

(836,690)

(57,237)

 

For further information, please visit our corporate website: www.csn.com.br/ri

17

 

 
 

 

2Q16

RESULTS

 

 

BALANCE SHEET

Company Corporate Law (In Thousand of R$)

Consolidated

Originally presented

Restatement

Originally presented

Restatement

12/31/2015

06/30/2016

 

Current assets

16,430,691

16,430,691

11,925,609

11,925,609

Cash and cash equivalents

8,624,651

8,624,651

5,461,966

5,461,966

Trade receivables

1,578,277

1,578,277

1,688,377

1,688,377

Inventories

4,941,314

4,941,314

3,834,048

3,834,048

Other current assets

1,286,449

1,286,449

941,218

941,218

Non-current assets

32,219,283

32,219,283

32,404,128

32,404,128

Long-term receivables

4,890,948

4,890,948

4,708,126

4,708,126

Investments measured at amortized cost

3,998,227

3,998,227

4,400,282

4,400,282

Property, plant and equipment

17,871,599

17,871,599

17,953,537

17,953,537

Intangible assets

5,458,509

5,458,509

5,342,183

5,342,183

Total assets

48,649,974

48,649,974

44,329,737

44,329,737

Current liabilities

5,325,571

5,325,571

4,511,055

4,511,055

Payroll and related taxes

256,840

256,840

261,743

261,743

Suppliers

1,293,008

1,293,008

1,194,942

1,194,942

Taxes payable

700,763

700,763

727,095

727,095

Borrowings and financing

1,874,681

1,874,681

1,337,872

1,337,872

Other payables

1,073,017

1,073,017

865,285

865,285

Provisions

127,262

127,262

124,118

124,118

Non-current liabilities

34,588,740

34,588,740

31,149,356

31,149,356

Borrowings and financing

32,407,834

32,407,834

29,004,967

29,004,967

Deferred Income Tax and Social Contribution

494,851

494,851

478,257

478,257

Other payables

131,284

131,284

137,032

137,032

Provisions

711,472

711,472

690,707

690,707

Other provisions

843,299

843,299

838,393

838,393

Shareholders’ equity

8,735,663

8,735,663

8,669,326

8,669,326

Paid-in capital

4,540,000

4,540,000

4,540,000

4,540,000

Capital reserves

30

30

30

30

Earnings reserves

2,104,804

2,464,701

2,104,804

2,464,701

Profit/Losses

-

-

(893,927)

(893,927)

Other comprehensive income

1,019,913

660,016

1,828,190

1,468,293

Non-controlling interests

1,070,916

1,070,916

1,090,229

1,090,229

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

48,649,974

48,649,974

44,329,737

44,329,737

 

 
 

 

For further information, please visit our corporate website: www.csn.com.br/ri

18


 
 

 

2Q16

RESULTS

 

 

BALANCE SHEET

Company Corporate Law (In Thousand of R$)

Parent Company

Originally presented

Restatement

Originally presented

Restatement

12/31/2015

06/30/2016

Current assets

8,842,440

8,842,440

7,745,548

7,745,548

Cash and cash equivalents

2,648,798

2,648,798

2,596,560

2,596,560

Trade receivables

2,467,523

2,467,523

2,245,449

2,245,449

Inventories

2,850,744

2,850,744

2,233,580

2,233,580

Other current assets

875,375

875,375

669,959

669,959

Non-current assets

36,763,086

36,763,086

33,654,059

33,654,059

Long-term receivables

4,510,431

4,510,431

4,330,913

4,330,913

Investments measured at amortized cost

23,323,565

23,323,565

20,018,260

20,018,260

Property, plant and equipment

8,866,348

8,866,348

9,245,398

9,245,398

Intangible assets

62,742

62,742

59,488

59,488

Total assets

45,605,526

45,605,526

41,399,607

41,399,607

Current liabilities

4,272,372

4,272,372

3,533,932

3,533,932

Payroll and related taxes

141,496

141,496

142,050

142,050

Suppliers

742,364

742,364

748,094

748,094

Taxes payable

5,814

5,814

57,989

57,989

Borrowings and financing

2,879,073

2,879,073

2,174,927

2,174,927

Other payables

411,699

411,699

325,240

325,240

Provisions

91,926

91,926

85,632

85,632

Non-current liabilities

33,668,407

33,668,407

30,286,578

30,286,578

Borrowings and financing

31,109,017

31,109,017

27,903,434

27,903,434

Other payables

126,450

126,450

88,404

88,404

Provisions

564,372

564,372

544,323

544,323

Other provisions

1,868,568

1,868,568

1,750,417

1,750,417

Shareholders’ equity

7,664,747

7,664,747

7,579,097

7,579,097

Paid-in capital

4,540,000

4,540,000

4,540,000

4,540,000

Capital reserves

30

30

30

30

Earnings reserves

2,104,804

2,464,701

2,104,804

2,464,701

Profit/Losses

-

-

(893,927)

(893,927)

Other comprehensive income

1,019,913

660,016

1,828,190

1,468,293

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

45,605,526

45,605,526

41,399,607

41,399,607

 

 
 

 

For further information, please visit our corporate website: www.csn.com.br/ri

19


 
 

 

2Q16

RESULTS

 

 

CASH FLOW STATEMENT

CONSOLIDATED - Corporate Law (In Thousand of R$)

 

1Q16

2Q16

Net cash generated by operating activities (A)

(939,450)

208,504

(Net Losses) / Net income attributable to controlling shareholders

(836,690)

(57,237)

Loss for the period attributable to non-controlling interests

5,398

14,522

Charges on borrowings and financing

734,734

724,161

Depreciation, depletion and amortization

321,944

315,448

Share of profits (losses) of investees

(44,979)

(18,428)

Deferred income tax and social contribution

69,681

74,908

Foreign exchange and monetary variations, net

(379,360)

(979,950)

Result from derivative financial instruments

362

-

Write-off of permanent assets

12,966

14,022

Buyback of debt securities

(146,214)

-

Provisions

26,997

(57,570)

Working Capital

227,990

830,017

Accounts Receivable

(219,640)

107,092

Trade Receivables – Related Parties

(8,407)

(119)

Inventory

443,691

663,574

Judicial Deposits

4,098

20,526

Suppliers

(59,340)

(37,119)

Taxes and Contributions

101,896

175,041

Others

(34,308)

(98,978)

Other payments and receipts

(932,279)

(651,389)

Interest paid/received paid on swap

(932,279)

(651,389)

Cash Flow from Investment Activities (B)

(887,053)

(290,336)

Investments

-

(190,435)

Fixed Assets/Intangible

(329,838)

(467,222)

Derivative transactions

(556,682)

(158,865)

Short-term investment, net of redeemed amount

(533)

526,186

Cash Flow from Financing Companies (C )

(438,466)

(232,973)

Borrowings and financing raised, net of transaction costs

(26,770)

(180)

Amortizations/funding for Fortaiting/Drawee risk

(44,842)

(134,549)

Amortizations

(215,756)

(91,639)

Buyback of debt securities

(151,098)

(6,605)

Foreign Exchange Variation on Cash and Cash Equivalents (D)

(55,143)

23,021

Free Cash Flow (A+B+C+D)

(2,320,112)

(291,784)

 

 

For further information, please visit our corporate website: www.csn.com.br/ri

20


 
 

 

2Q16

RESULTS

 

 

SALES VOLUME CONSOLIDATED (thousand tonnes)

                       

 

2Q15

1Q16

2Q16

 

Change

 

 

2Q16

x

1Q16

 

2Q16

x

2Q15

Flat Steel

717

611

626

 

15

 

(91)

Slabs

0

-

0

 

0

 

(0)

Hot Rolled

267

220

225

 

5

 

(42)

Cold Rolled

151

108

117

 

9

 

(34)

Galvanized

205

197

203

 

6

 

(1)

Tin Plates

94

85

81

 

(4)

 

(13)

Long Steel UPV

42

38

43

 

5

 

1

DOMESTIC MARKET

758

649

669

 

20

 

(90)

 

                   

 

 

2Q15

1Q16

2Q16

 

2Q16

x

1Q16

 

2Q16

x

2Q15

Flat Steel

299

381

365

 

(16)

 

67

Hot Rolled

59

59

29

 

(30)

 

(29)

Cold Rolled

44

27

25

 

(2)

 

(18)

Galvanized

165

265

259

 

(6)

 

94

Tin Plates

31

30

52

 

22

 

21

Long Steel (profiles)

204

216

219

 

3

 

14

FOREIGN MARKET

503

597

584

 

(13)

 

81

 

 

 

 

             

 

 

2Q15

1Q16

2Q16

 

2Q16

x

1Q16

 

2Q16

x

2Q15

Flat Steel

1,015

992

991

 

(1)

 

(24)

Slabs

0

-

0

 

0

 

(0)

Hot Rolled

326

280

254

 

(26)

 

(72)

Cold Rolled

195

135

143

 

8

 

(52)

Galvanized

370

462

462

 

0

 

93

Tin Plates

125

115

133

 

18

 

8

Long Steel UPV

42

38

43

 

5

 

1

Long Steel (profiles)

204

216

219

 

3

 

14

TOTAL MARKET

1,261

1,246

1,253

 

7

 

(9)

                       

SALES VOLUME PARENT COMPANY (thousand tonnes)

                       

 

2Q15

1Q16

2Q16

 

Change

 

 

2Q16

x

1Q16

 

2Q16

x

2Q15

Flat Steel

812

709

696

 

(13)

 

(116)

Slabs

0

-

0

 

0

 

(0)

Hot Rolled

303

244

239

 

(5)

 

(64)

Cold Rolled

175

124

129

 

5

 

(47)

Galvanized

237

253

247

 

(6)

 

10

Tin Plates

96

89

81

 

(8)

 

(15)

Long Steel UPV

41

38

43

 

5

 

1

DOMESTIC MARKET

853

747

738

 

(9)

 

(115)

 

                     

 

2Q15

1Q16

2Q16

 

2Q16

x

1Q16

 

2Q16

x

2Q15

Flat Steel

250

186

252

 

66

 

2

Hot Rolled

143

53

3

 

(50)

 

(139)

Cold Rolled

21

-

125

 

125

 

103

Galvanized

55

103

55

 

(48)

 

0

Tin Plates

31

30

-

 

(30)

 

(31)

Long Steel (profiles)

-

-

-

 

-

 

-

FOREIGN MARKET

250

186

252

 

66

 

2

 

 

 

 

             

 

 

2Q15

1Q16

2Q16

 

2Q16

x

1Q16

 

2Q16

x

2Q15

Flat Steel

1,062

895

948

 

53

 

(114)

Slabs

0

-

0

 

0

 

(0)

Hot Rolled

446

297

308

 

11

 

(138)

Cold Rolled

197

124

132

 

8

 

(65)

Galvanized

291

356

371

 

15

 

80

Tin Plates

127

119

136

 

17

 

9

Long Steel UPV

41

38

43

 

5

 

1

Long Steel (profiles)

-

-

-

 

-

 

-

TOTAL MARKET

1,103

933

990

 

57

 

(113)

 

 

 

For further information, please visit our corporate website: www.csn.com.br/ri

21

 
 

SIGNATURE
 
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: November 14, 2016
 
COMPANHIA SIDERÚRGICA NACIONAL
By:
/S/ Benjamin Steinbruch

 
Benjamin Steinbruch
Chief Executive Officer

 

 
By:
/S/ David Moise Salama 

 
David Moise Salama
Executive Officer

 
 

 

 
FORWARD-LOOKING STATEMENTS

This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.