GGB » Topics » Investments

This excerpt taken from the GGB 6-K filed Nov 5, 2009.

Investments

 

·                  In the third quarter of 2009, investments in fixed assets totaled R$ 231.7 million. Of this total, 66.3% was allocated to Brazil, with the remaining 33.7% allocated to companies in other countries. A total of R$ 1.1 billion has been disbursed so far this year.

 

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·                  As announced in October, Gerdau resumed the project for the installation of a heavy plates rolling mill in the Ouro Branco unit, state of Minas Gerais, signaling its entry into Brazil’s flat steel sector. The project details are as follows:

 

·                  Investment of R$ 1.75 billion;

·                  Capacity of 1 million tonnes;

·                  Use of continuous slab casting, with capacity of 1.5 million tonnes;

·                  Start up of operations slated for late 2012;

·                  Supplying the oil, shipping, construction and heavy-equipment sectors in both the domestic market and international markets.

 

·                  Additionally the Company will restart operations at Várzea de Lopes (MG) iron ore mine, in which should reach an annual production of 1.5 million tonnes, which combined with Miguel Burnier iron ore production, Gerdau expects to reach a total annual production of 2.7 million tonnes, fully directed to its own consumption.

 

·                  The plan for investments in fixed assets from 2010 to 2014 was revised and is currently estimated at R$ 9.5 billion, which includes strategic investments in the Ouro Branco unit and in the joint-venture in India.

 

This excerpt taken from the GGB 6-K filed Aug 6, 2009.

Investments

 

·                  The Company plans to invest US$ 3.6 billion in fixed assets between 2009 and 2013, which may be reduced based on lower investment costs in the future economic scenario. For 2009, planned disbursements for these investments total US$ 550 million.

 

·                  Investments in fixed assets totaled US$ 149.0 million in the second quarter of 2009, 49.0% of which was invested in the Brazil segment and the remaining 51.0% in other segments. A total of US$ 391.0 million has been disbursed in the first semester of 2009.

 

This excerpt taken from the GGB 6-K filed May 13, 2009.

Investments

 

·                  Over the next five years, the Company plans to invest US$ 3.6 billion in fixed assets, which may be reduced based on the investment costs under future economic environments. For 2009, planned disbursements for these investments total US$ 550.0 million.

 

·                  In the first quarter, investments in fixed assets totaled US$ 242.0 million, continuing to reflect the investments made in 2008. Of this total, 57.9% was allocated to the Brazil business segment, with the remaining 42.1% allocated to the other business segments.

 

This excerpt taken from the GGB 6-K filed May 22, 2007.

Investments

·      Investments in fixed assets totaled US$ 381.9 million in the first quarter this year. They were essentially destined to the enhancement of the installed capacity at Gerdau Açominas, Ouro Branco (MG).

·      The Brazilian operations got the largest stake of investments totaling US$ 269.7 million in the quarter. The North American units absorbed US$ 54.0 million, and the South American units US$ 23.2 million and Europe the remaining US$ 35.0 million.

·      In addition to the investments mentioned above, it is worth mentioning that on March 28, 2007, Gerdau acquired, for US$ 259 million, a group of companies headquartered in Mexico City composed of Siderúrgica Tultitlán, Ferrotultitlán and Arrendadora Valle de México. The steel mill Siderúrgica Tultitlán, located in the metropolitan area of Mexico City is a rebar and merchants’ producer with an installed capacity of 350 thousand metric tons of crude steel, and 330 thousand metric tons of rolled products. The investment plan, already under way and which should be concluded by year-end, will increase capacity to 500 thousand metric tons of crude steel and 430 thousand metric tons of rolled products. Ferrotultitlán is a steel products distribution company, and Arrendadora Valle de México has Siderúrgica Tultitlán’s land and buildings as its assets.

This excerpt taken from the GGB 6-K filed Nov 29, 2006.

Investments

 

      Investments in fixed assets in the second quarter reached US$ 169.1 million, destined, mainly, to increase installed capacity in several units in Brazil and abroad. Investments accumulated year-to-date totaled US$ 391.7 million.

 

      On June 12, the acquisition process of Sheffield Steel Corporation, in Sand Springs, Oklahoma was concluded. Sheffield is a long steel mini-mill. It produces mainly rebars and merchants and has a nominal capacity of approximately 600 thousand metric tons per annum. The company operates one melt shop and one rolling mill at the Sand Springs, Oklahoma plant, and a rolling mill in Joliet, Illinois, and three downstream units in Kansas City and Sand Springs. The investment in the acquisition totaled US$ 187 million, of which US$ 103 million in cash and US$ 84 million in debt and long-term liabilities.

 

Investments
(US$ million)

 

2Q06

 

1Q06

 

1S06

 

Brazil

 

107.1

 

163.1

 

270.2

 

Abroad

 

411.6

 

268,5

 

818.8

 

North America

 

225.0

 

52.1

 

277.1

 

South America

 

186.6

 

15.1

 

201.7

 

Europe

 

 

201,3

 

340.0

 

Total

 

518.7

 

431,6

 

1,089.0

 

 


Note:                   (1) Includes acquisitions in the period.

(2) Includes debt of the acquired companies in the period.

 

      On June 28, Gerdau won the public auction for Empresa Siderúrgica del Perú S.A.A. - Siderperú, located in the city of Chimbote, Peru. The company produces long and flat steel and has annual sales of approximately 360 thousand metric tons of finished products. Siderperú operates one blast furnace, one direct reduction unit, a melt shop with two electric arc furnaces and two LD converters and three rolling mills. Approximately 20% of sales are flat steel and 80% long steel. The investment for the acquisition of 50% plus one share of the capital stock was US$ 60.6 million, in addition to the assumption of a debt of approximately US$ 102 million.

 

This excerpt taken from the GGB 6-K filed Jun 20, 2006.

Investments

·      Investments in fixed assets in the quarter totaled US$ 223.1 million, destined mostly to the increase of installed capacity in several units in Brazil and abroad.

·      It should be mentioned that in the month of March the assets of two industrial units were acquired in the United States. The first one was Callaway Building Products, in Knoxville, Tennessee, a supplier of civil construction cut and bent reinforcing concrete bars. The second was Fargo Iron and Metal Company, located in Fargo, North Dakota, a storage and scrap processing facility and service provider to industries and civil construction companies.

·      On April 5, Gerdau signed a purchase agreement for the acquisition of Sheffield Steel Corporation, of Sand Springs, Oklahoma, in the USA.

·      Sheffield is a mini-mill producer of long common steel, namely concrete reinforcing bars and merchant bars. It has one melt shop and one rolling mill in Sand Springs, Oklahoma, one rolling mill in Joliet, Illinois, and three transformation units in Kansas City and Sand Springs.

·      The cost of the operation was estimated at US$ 104 million, plus a net debt and some long term liabilities of approximately US$ 84 million, for a total of US$ 188 million.

·      The acquisition should be finalized in the second quarter of 2006.

·      The acquisition of the 40% stake in Corporación Sidenor, the largest long specialty steel producer, forged parts and foundry in Spain and one of the major producers of forged parts by stamping in that country, was completed on January 11, 2006. The investment totaled € 185.3 million.

This excerpt taken from the GGB 6-K filed May 18, 2006.
investments - are explained and presented in Note 11;

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·                                       

This excerpt taken from the GGB 6-K filed May 9, 2006.

Investments

 

      Investments in the quarter totaled US$ 223.1 million, destined mostly to the increase of installed capacity in several units in Brazil and abroad.

 

      It is worthwhile mentioning that in the month of March the assets of two industrial units were acquired in the United States. The first one was Callaway Building Products, in Knoxville, Tennessee, a supplier of civil construction cut and bent reinforcing concrete bars. The second was Fargo Iron and Metal Company, located in Fargo, North Dakota, a storage and scrap processing facility and service provider to industries and civil construction companies.

 

      On April 5, Gerdau signed a purchase agreement for the acquisition of Sheffield Steel Corporation, of Sand Springs, Oklahoma, in the USA.

      Sheffield is a mini-mill producer of long common steel, namely concrete reinforcing bars and merchant bars. It has one melt shop and one rolling mill in Sand Springs, Oklahoma, one rolling mill in Joliet, Illinois, and three transformation units in Kansas City and Sand Springs.

      The cost of the operation was estimated in US$ 104 million, plus a net debt and some long term liabilities for a total of about US$ 84 million for a total of US$ 188 million.

 

      The acquisition should be finalized in the second quarter of 2006.                 

 

This excerpt taken from the GGB 6-K filed Feb 21, 2006.

Investments

 

The continuation of its investment program as determined by the company, led to disbursements that totaled, in the 4th quarter, US$ 188.8 million in fixed assets. Additionally, US$ 10.6 million were destined to the conclusion of the acquisition of Sidelpa, in Colombia, a subsidiary of Diaco. This acquisition was concluded at the end of the 3rd quarter.

 

Investments

(US$ millions)

4Q05

3Q05

Year 2005

Brazil

158.4

131.1

568.8

 

 

 

 

Abroad

41.0

163.5

289.2

North America

21.5

42.4

135.9

South America

19.5

121.1

153.43

 

 

 

 

Total

199.4

294.6

858.0

 

 

 


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This excerpt taken from the GGB 6-K filed Jun 10, 2005.

Investments

 

      Investments in the quarter totaled USS$ 174.0 million, destined, mostly, to the construction of the new mill in the state of São Paulo and for the increase in the capacity of the Ouro Branco (MG) mill.

 

Investments per Region

 

This excerpt taken from the GGB 6-K filed Feb 3, 2005.

Investments

 

      Investments in the last three months of 2004 totaled US$ 501.2 million, mostly destined to the acquisition of the North Star assets and the construction of the new mill in the state of São Paulo.  Companies in Brazil in the quarter invested US$ 127.2 million, while the mills in North America invested US$ 370.0 million and the South American units the balance of US$ 4.0 million.

 

      Investments in the year, acquisitions included, totaled US$ 771.7 million, of which US$ 325.6 million (42.2% of total) were invested in Brazil-based units, US$ 435.8 million (56.5% of total) in industrial sites in North America, and US$ 10.3 million (1.3% of total) in the South American mills.

 

Investments
(US$ million)

 

Fiscal Year 2004

 

Fiscal Year
2003

 

Brazil

 

325.6

 

228.5

 

Gerdau Açominas

 

317.3

 

221.3

 

Other

 

8.3

 

7.2

 

Abroad

 

446.1

 

66.2

 

North America

 

435.8

 

59.4

 

South America

 

10.3

 

6.8

 

Total

 

771.7

 

294.7

 

 

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