Brazilian steelmaker CSN on Tuesday said it more than tripled its quarterly profit boosted by higher steel prices.The third quarter net profit soared to 694 million reais ($245 million) from 203 million reais in the year-earlier period, Companhia Siderurgica Nacional (CSN) said.

It pinned the sharp increase on high steel prices, a more profitable mix of products and gains from its logistics business.Earnings before interest, taxes, depreciation and amortization (EBITDA), a measure of cash flow, jumped to 1.36 billion reais from 747.5 million reais in the same quarter of 2003.

"The quarter was exceptionally good for them. Not only did they increase the domestic price by 21 percent, but as they have their own iron ore and energy they didn't have a cost impact," said Catarina Pedrosa, an analyst with Banif Investment Banking.

Net revenue rose 56 percent to 2.8 billion reais from year ago levels, even though sales volume dropped 8 percent to 1.2 million tonnes of steel. Domestic sales surged 40 percent fueled by an economic recovery in Brazil, while exports slumped 55 percent to total about a quarter of overall sales, CSN said.

In the first nine months of 2004, however, total sales rose 5 percent over the same period of last year to 3.7 million tonnes. ($1 = 2.83 reais).

(From Reuters, November 09, 2004)

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