Brazil's largest supplier of steel products, on Wednesday posted a sharply higher quarterly profit, boosted by higher steel prices and strong results for its U.S. operations.

Gerdau posted a net profit of 1.19 billion reais ($417 million) for the third quarter, more than four times the 245 million reais in reported a year earlier and up 36 percent from the second quarter of this year.

Gerdau said its earnings had been bolstered by improving business in its North American units and higher prices for its steel products. It also noted in a statement the reactivation of the civil construction sector in Brazil had helped its bottom line.

Earnings before interest, taxes, depreciation and amortization, a gauge of cash flow known as EBITDA, rose to 1.7 billion reais in the third quarter from 671 million reais in the year-earlier period.Net revenue rose 50 percent to 5.23 billion reais from the third quarter last year. ($1 = 2.854 reais).

(From Reuters, November 03, 2004)

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