National Steel (SID Quick QuoteSID - Free Report) delivered a loss per share of 8 cents, beating the Zacks Consensus Estimate of a loss of 26 cents. Notably, it reported earnings per share of 4 cents in the prior-year quarter.

The company reported a net loss of R$222.6 million ($41 million) in the second quarter of 2024.

Domestic revenues decreased 4.3% year over year to R$5.5 billion ($1.01 billion). The company’s international business revenues improved 2.7% year over year to R$5.38 billion ($0.99 billion).

For the June-end quarter of 2024, net revenues were R$10.88 billion ($1.99 billion), down 1% year over year.

Segmental Performance

Steel: The segment’s revenues totaled R$5.59 billion ($1.02 billion), down 5.9% year over year. Steel sales were 1,122.6 thousand tons, up 6.8% from the second quarter of 2023. Iron ore sales were 10,792.2 thousand tons, marking a 4.1% decrease from the prior-year quarter.

Mining: The segment generated revenues of R$3.35 billion ($0.61 billion), down 7.8% year over year.

Logistics (Port & Railways): The segment’s revenues were R$839 million ($154 million), up 16% year over year.

Energy: The segment’s revenues totaled R$103 million ($19 million), which marked a 35% year-over-year fall.

Cement: The segment’s revenues improved 8.4% year over year to R$1.2 billion ($0.28 billion).

Margin & Costs

In the second quarter of 2024, the company’s cost of sales decreased 9.8% year over year to R$7.89 billion ($1.45 billion). Gross profit improved 33.2% year over year to R$2.99 billion ($0.55 billion). The gross margin came in at 27.6% compared with the year-earlier quarter’s 20.4%.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) improved 16.9% year over year to R$2.65 billion ($0.73 billion). The EBITDA margin was 24.3% in the reported quarter compared with the prior-year quarter’s 20.6%.

Balance Sheet & Cash Flow

The company had cash and cash equivalents of R$15.54 billion ($2.85 billion) at the end of second-quarter 2024, up from R$11.97 billion ($2.19 billion) at the end of the prior-year quarter. The net debt to adjusted EBITDA ratio was 3.6 at the second-quarter 2024 end.

Price Performance

National Steel’s shares have lost 3.2% in the past year compared with the industry’s 13.8% decline.

Image Source: Zacks Investment Research

Zacks Rank

SID currently carries a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Peer Performance

Commercial Metals Company (CMC Quick QuoteCMC - Free Report) reported adjusted earnings per share of $1.02 in third-quarter fiscal 2024 (ended May 31, 2024), beating the Zacks Consensus Estimate of $1.00. However, the bottom line fell 48.5% year over year.

Revenues of CMC in the reported quarter came in at $2.08 billion compared with the year-ago quarter’s $2.34 billion. The reported figure surpassed the Zacks Consensus Estimate of $2 billion.

ArcelorMittal S.A. (MT Quick QuoteMT - Free Report) recorded a net income of $504 million or 63 cents per share in second-quarter 2024 compared with $1,860 million or $2.21 per share in the year-ago quarter. The bottom line missed the Zacks Consensus Estimate of $1.12 per share.

Total revenues of MT fell around 13% year over year to $16,249 million in the quarter. The figure also missed the consensus estimate of $16,911.4 million.

Nucor Corporation (NUE Quick QuoteNUE - Free Report) reported earnings of $2.68 per share in the second quarter of 2024, down from earnings of $5.81 in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate of $2.31.

NUE recorded revenues of $8,077.2 million, down around 15% year over year. The figure beat the Zacks Consensus Estimate of $7,607.7 million.