XM does not provide services to residents of the United States of America.

Brazil steelmaker Usiminas plunges on 'weak' Q2 results, outlook



<html xmlns="http://www.w3.org/1999/xhtml"><head><title>BUZZ-Brazil steelmaker Usiminas plunges on 'weak' Q2 results, outlook</title></head><body>

** Shares in Brazilian steelmaker Usiminas USIM5.SA tumble after it reported its second-quarter results

** Usiminas' quarterly adjusted EBITDA hit 247 million reais ($43.88 million), down 33% year-on-year and below the 444.68 million expected by analysts polled by LSEG

** The firm says the recent weakness of Brazil's real has been making costs higher and will have a negative impact on costs per sale in the third quarter

** That will lead Usiminas to hike prices in order to improve net revenues going forward, it says

** Goldman Sachs analysts note that although expectations for the second quarter were low, the results were "weak" as higher-than-expected costs led to a "significant" EBITDA miss

** "More importantly, management guidance for costs in Q3 was a big disappointment, as we were expecting the positive effects of the renewed blast furnace to drive a more significant cost improvement," they say

** Shares of Usiminas plunge more than 16% in early Sao Paulo trading, making it the biggest faller on Brazil's benchmark stock index Bovespa .BVSP, which is up 0.1%


($1 = 5.6294 reais)



Reporting by Gabriel Araujo

</body></html>

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.