sidpr3q17-6k.htm - Generated by SEC Publisher for SEC Filing  
 
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 

 
FORM 6-K
 
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934
 
For the month of December, 2017
Commission File Number 1-14732
 

 
COMPANHIA SIDERÚRGICA NACIONAL
(Exact name of registrant as specified in its charter)
 
National Steel Company
(Translation of Registrant's name into English)
 
Av. Brigadeiro Faria Lima 3400, 20º andar
São Paulo, SP, Brazil
04538-132
(Address of principal executive office)
 
Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F. 
Form 20-F ___X___ Form 40-F _______

 Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.  

Yes _______ No ___X____

 

 
 

São Paulo, December 22, 2017

 

3Q17 Earnings Release

Unaudited 

 

 

Companhia Siderúrgica Nacional (CSN) (B3 S.A. – BOLSA BRASIL BALCÃO: CSNA3) (NYSE: SID) exceptionally discloses its preliminary and unaudited results for the third quarter of 2017 (3Q17) and is therefore subject to adjustments and modifications by independent auditors review. The information disclosed in Brazilian Reais and prepared in accordance with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB); and also in accordance with accounting practices adopted in Brazil and fully convergent with international accounting standards, issued by the Accounting Pronouncements Committee (CPC) and referenced by the Brazilian Securities and Exchange Commission (CVM), pursuant to CVM Instruction 485 of 09/01/2010. The below text encompasses the Company's consolidated results for the third quarter of 2017 (3Q17) and comparisons are for the second quarter of 2017 (2Q17) and for the third quarter of 2016 (3Q16) without Metallic, unless otherwise specified. The Real/U.S. Dollar exchange rate was R$3.1625 on September 30, 2017 and R$3.3076 on June 30, 2017.

 

The financial information contained herein for the second quarter of 2017 is preliminary and unaudited, and is therefore subject to adjustments and modifications as a result of an independent auditors' review.

 

 

Operating and Financial Highlights

 

·         EBITDA totaled R$1,213 million, 35% up on 2Q17, accompanied by an EBITDA margin of 24%, 4.4 p.p. higher than in the same quarter of the previous year.

·         Net revenue stood at R$4,810 million in 3Q17, the highest output quarter since 2014.

·         Iron ore sales reached 7,9 million tonnes, 2% higher than in 2Q17.

·         The net debt/EBITDA ratio closed 3Q17 at 5.5x.

·         Steel lower spending with scheduled maintenance of LTQ2 and AF3.

·          Fall of R$ 662 million in working capital, with a focus on inventories reduction and a longer finance cycle.

Highlights

3Q16

2Q17

3Q17

Change

3Q17

x

2Q17

3Q17

x

3Q16

Steel Sales (thousand t)

1,171

1,174

1,301

11%

9%

   - Domestic Market

62%

56%

62%

6%

4%

   - Overseas Subsidiaries

34%

39%

33%

-6%

-6%

   - Exports

4%

5%

5%

0%

1%

Iron Ore Sales (thousand t)1

10,230

7,818

7,953

2%

-22%

   - Domestic Market

89%

17%

17%

0%

6%

   - Exports

89%

83%

83%

0%

-6%

Consolidated Results (R$ Million)

     

 

 

 

 

 

 

Net Revenue

4,469

4,311

4,810

12%

8%

Gross Profit

1,312

985

1,213

23%

-8%

Adjusted EBITDA

1,239

896

1,213

35%

-2%

Adjusted Net Debt

25,842

26,754

25,717

-4%

0%

Adjusted Cash Position

5,663

4,545

4,358

-4%

-23%

Net Debt / Adjusted EBITDA

7.4x

5.7x

5.5x

-0.2x

-1.9x

Adjusted EBITDA is calculated based on net income/loss, plus depreciation and amortization, income tax, net financial result, results from investees and other operating revenue (expenses), and includes the proportionate share of EBITDA of the jointly-owned subsidiaries MRS Logística and CBSI. It has also included the Company’s stakes of 100% in Congonhas Minérios, 37.27% in MRS and 50% in CBSI as of December 2015.

Adjusted Net Debt and Adjusted Cash Position include the stakes of 100% in Congonhas Minérios, 37.27% in MRS and 50% in CBS excluding Forfaiting and drawee risk operations.

 

   


 
 

 

 

 

CSN’s Consolidated Results

 

·         Net revenue totaled R$4,810 million in 3Q17, 12% up on 2Q17, due to higher steel product sales volume compared with the immediately previous quarter and the slight upturn in shipped volume in the mining segment, with an increase in ore prices.

 

·         COGS came to R$3,597 million in 3Q17, 8% higher than in the previous quarter, accompanying the increase in sales volume in the steel segment.

 

·         Gross profit totaled R$1,213 million, 23% higher on 2Q17, while the gross margin reached 25,2%, highlight with the strong results in the mining segment.

 

·         Selling, general and administrative expenses amounted to R$491 million in 3Q17, 17% less than in 2Q17, especially due to the lower share of iron ore CIF sales in the mix in the previous quarter.

 

·         Other operating income (expenses) was a net expense of R$98 million in 3Q17, in line with the previous quarter.

 

·         In 3Q17, the net financial result was negative by R$278 million, i) as a result of financial expenses of R$348 million, partial compensated by the financial revenue of R$71 million. The foreign exchange variation of the dollar-denominated debt was positive in R$ 473 million.

 

Financial Result (R$ million)

        3Q16

2Q17

3Q17

Financial Result - IFRS

     (744)

           (829)

           (278)

Financial Revenue

      139

               84

               71

Financial Expenses

     (884)

           (912)

           (348)

Financial Expenses (ex-exchange variation)

     (823)

           (683)

           (629)

Result with Exchange Variation

      (60)

           (229)

           280

Monetary and Exchange Variation

   (131)

           (461)

           473

Hedge Accounting

     68

             227

             (202)

Derivative Result

     3

                  5

                  10

 

 

 

 

 

 

·         CSN’s equity result was a positive R$38 million in 3Q17, versus R$39 million in 2Q17.

 

Share of Profit (Loss) of Investees (R$ million)

3Q16

2Q17

3Q17

Change

3Q17

x

2Q17

3Q17

x

3Q16

MRS Logística

42

54

54

-

29%

CBSI

1

1

1

-

-

TLSA

(6)

(5)

(11)

133%

76%

Arvedi Metalfer BR

2

1

-

-

-

Eliminations

(13)

(12)

(6)

(47%)

(52%)

Unrealized Profit

1

-

-

-

 

Share of Profits (Losses) of Investees

          26

          39

         38

(3%)

45%

 

 

·          CSN recorded a third-quarter net income of R$256 million, versus net loss of R$640 million in 2Q17. In 3Q17 was reflected by a better operating margin in steel and mining, as well as financial results.

 

 

Adjusted EBITDA (R$ million)

3Q16

2Q17

3Q17

Change

3Q17

x

2Q17

3Q17

x

3Q16

Profit (Loss) for the Period

(67)

(640)

256

-

-

(-) Depreciation

311

356

344

(3%)

11%

(+)  Income Tax and Social Contribution

123

145

128 

(12%)

4%

(-) Net Financial Result

744

829

278

(66%)

(63%)

EBITDA (CVM Instruction 527)

1,118

689

1,006

46%

(10%)

(+) Other Operating Income/Expenses

8

99

98

(1%)

-

(+) Share of Profit (Loss) of Investees

(26)

(39)

(38)

(3%)

46%

(-) Proportionate EBITDA of Jointly-Owned Subsidiaries

138

148

147

(1%)

7%

Adjusted EBITDA

1,232

896

1,213

35%

(2%)

¹The Company discloses adjusted EBITDA excluding interests in investments and other operating income (expenses) in the belief that these items should not be considered when calculating recurring operating cash flow.

 

 
 
 

 
 

 
 

 

 

·         Adjusted EBITDA amounted to R$1,213 million in 3Q17, versus R$896 million in the previous quarter, 35% up, accompanied by an adjusted EBITDA margin of 24%, due to higher performance of iron and steel.

 

 

¹The adjusted EBITDA margin is calculated as the ratio between adjusted EBITDA and adjusted net revenue, considering the stakes of 100% in Congonhas Minérios, 37.27% in MRS and 50% in CBSI.

 

Debt

 

The adjusted amounts of EBITDA, debt and cash include the stakes of 100% in Congonhas Minérios, 37.27% in MRS and 50% in CBSI, as well as financial investments used as collateral for exchange operations on the B3 S.A. – BOLSA BRASIL BALCÃO. On June 30, 2017, consolidated net debt totaled R$26,754 million, while the net debt/EBITDA ratio, calculated based on LTM adjusted EBITDA, stood at 5.5x.

 

 

 

 
 
 

 
 

 

 

Foreign Exchange Exposure

 

The FX exposure of our consolidated balance sheet on September 30, 2017 was US$742 million, as shown in the table below.

 

The hedge accounting adopted by CSN correlates projected export inflows in dollars with part of the scheduled debt payments in the same currency. Therefore, the exchange variation of the dollar-denominated debt is temporarily booked under shareholders’ equity, being recorded in the income statement when dollar revenues from exports are received.

 

Foreign Exchange Exposure

IFRS

(US$ million)

6/30/2017

9/30/2017

Cash

               890

               846

Accounts Receivable

               404

               387

Total Assets

           1,296

           1,236

Borrowings and Financing

          (4,324)

          (4,329)

Suppliers

               (70)

               (37)

Other Liabilities

               (13)

               (5)

Total Liabilities

          (4,407)

          (4,370)

Foreign Exchange Exposure

          (3,110)

          (3,135)

Notional Amount of Derivatives Contracted, Net

            -  

            -  

Cash Flow Hedge Accounting

           1,421

           1,393

Net Foreign Exchange Exposure

          (1,689)

          (1,742)

Perpetual Bonds

           1,000

           1,000

Net Foreign Exchange Exposure excluding Perpetual Bonds

             (689)

             (742)

 

 

Capex

 

CSN invested R$293 million in 3Q17. The cumulative amount in 2017 was much lower than 2016..

 

 

Capex (R$ million)

3Q16

2Q17

3Q17

Steel

133

102

119

Mining

56

106

115

Cement

157

20

34

Logistics

36

11

19

Other

0

0

6

 Total Capex - IFRS

           382

           239

           293

 

Working Capital

 

Working capital invested in the Company’s business totaled R$2.935 million in 3Q17, R$662 million less than in 2Q17, chiefly due to the decrease in inventories and accounts receivable R$ 199 million and R$ 174 million respectively . On a same comparison basis, the average receivable period decreased by four days, while inventory turnover fell by nine days and the average payment period moved up by two days.

 

In order to calculate working capital, CSN adjusts its assets and liabilities as shown below:

 

 
 
 

 
 

 

 

 

·         Accounts Receivable: Excludes Dividends Receivable, Advances to Employees and Other Credits.

·         Inventories: Includes Estimated Losses and excludes Spare Parts, which is not part of the cash conversion cycle, and will be subsequently booked under Fixed Assets when consumed.

·         Recoverable Taxes: Composed only by the Income (IRPJ) and Social Contribution (CSLL) Taxes amount included in Recoverable Taxes.

·         Taxes Payable: Composed of Taxes Payable under Current Liabilities plus Taxes in Installments.

·         Advances from Clients: Subaccount of Other Liabilities recorded under Current Liabilities.

·         Suppliers: Includes Forfaiting and Drawee Risk.

 

 

Working Capital (R$ million)

3Q16

2Q17

3Q17

 

Change

 

3Q17

x

2Q17

3Q17

x

3Q16

Assets

4,953

6,252

5,868

 

          (383)

915

Accounts Receivable

1,789

2,300

2,127

 

(174)

338

Inventories

3,002

3,744

3,545

 

(199)

543

Recoverable Taxes

162

207

196

 

(11)

34

Liabilities

2,287

2,655

2,933

 

278

646

Suppliers

1,690

2,078

2,250

 

172

560

Payroll and Related Charges

287

294

296

 

2

10

Taxes Payable

248

183

279

 

96

31

Advances from Clients

63

100

108

 

9

45

Working Capital

2,666

3,597

2,935

 

(662)

269

 

 

 

 

 

 

 

 

 

 

 

Average Period (days)

3Q16

2Q17

3Q17

 

Change

 

3Q17

x

2Q17

3Q17

x

3Q16

Receivables

34

41

37

 

(4)

3

Supplier Payment

49

59

61

 

2

12

Inventories

87

106

97

 

(9)

10

Financial Cycle

72

88

73

 

(15)

1

 

 

Results by Segment

 

The Company maintains integrated operations in five business segments: Steel, Mining, Logistics, Cement and Energy.  The main assets and/or companies comprising each segment are presented below:

 

  

Notes: As of 2013, the Company ceased the proportional consolidation of its jointly-owned subsidiaries Namisa, MRS and CBSI. For the purpose of preparing and presenting the information by business segment, Management opted to maintain the proportional consolidation of its jointly-owned subsidiaries, in line with historical data. In the reconciliation of CSN’s consolidated results, these companies’ results are eliminated in the “Corporate Expenses/Elimination” column.

³Since the end of 2015 results, after the combination of CSN’s mining assets (Casa de Pedra, Namisa and Tecar), the consolidated result have included all the information related to this new company.

 

 
 
 

 
 

 

 

 

Net Revenue by Segment  – 3Q17  (R$ million)

 

 

 

 

 

 

 

Adjusted EBITDA by Segment – 3Q17 (R$ million)

 
 

 

 


 
 

 

 

      Logistics  Logistics    Energy Corporate/Eli   
Results 3Q17  Steel  Mining   (Port)   (Railways)  Cement  minations   Consolidated 
 (R$ MM)           
Net Revenue  3.399  1.204  60  364  142  103  (462)  4.810 
Domestic Market  2.133  218  60  364  142  103  (638)  2.382 
Foreign Market  1.265  986  -  -  -  -  176  2.427 
Cost of Goods Sold  (2.845)  (719)  (37)  (242)  (151)  (74)  471  (3.597) 
Gross Profit  553  486  23  122  (9)  29  8  1.213 
Selling, General and Administrative Expenses  (253)  (40)  (6)  (21)  (20)  (7)  (143)  (491) 
Depreciation  165  122  4  63  30  5  (45)  344 
Proportional EBITDA of Jointly Controlled Companies  -  -  -  -  -  -  147  147 
Adjusted EBITDA  465  568  21  164  1  27  (33)  1.213 

 

 

 

      Logistics  Logistics    Energy Corporate/Eli   
Results 2Q17  Steel  Mining   (Port)   (Railways)  Cement  minations   Consolidated 
 (R$ MM)           
Net Revenue  3.055  1.067  52  364  114  111  (452)  4.311 
Domestic Market  1.749  246  52  364  114  111  (674)  1.963 
Foreign Market  1.305  821  -  -  -  -  222  2.348 
Cost of Goods Sold  (2.628)  (742)  (38)  (244)  (126)  (71)  523  (3.326) 
Gross Profit  426  325  15  121  (13)  40  71  985 
Selling, General and Administrative Expenses  (271)  (42)  (7)  (23)  (20)  (7)  (222)  (592) 
Depreciation  172  124  4  65  33  6  (48)  356 
Proportional EBITDA of Jointly Controlled Companies  -  -  -  -  -  -  147  147 
Adjusted EBITDA  327  408  12  163  (0)  39  (53)  896 

 

 

 

Steel

 

According to the World Steel Association (WSA), global crude steel production totaled 1.1 billion tonnes until August 2017, 4.9% more than in the same period last year. According to the Brazilian Steel Institute – IABr, domestic crude steel production came to 22.5 million tonnes, 9.3% up. Apparent steel consumption grew by 4.5%, to 12.6 million tonnes, with domestic sales of 11 million tonnes and imports of 1.6 million tonnes. Exports totaled 9.8 million tonnes, 12.9% more than in the same period last year. According to INDA (the Brazilian Steel Distributors’ Association), in the first eight months, steel purchases by distributors declined by 1.9% year-on-year, totaling 1.9 million tonnes. Inventories stood at 897,500 tonnes at the end of August, 2.7% more than in the previous month, while inventory turnover fell to 3 months.

 

Automotive

According to ANFAVEA (the Auto Manufacturers’ Association), vehicle production totaled 1.9 million units in the first nine months of 2017, 27% up on the same period in 2016. In the same period, new light car, commercial vehicle, truck and bus licensing increased by 11% to 1.4 million units.

 

Construction

 

According to ABRAMAT (the Construction Material Manufacturers’ Association), sales of building materials fell by 6.1% in the year through August 2017 over the same period in 2016.

 

 

 
 

 

 

 

Home Appliances

 

According to IBGE (the Brazilian Institute of Geography and Statistics), home appliance production in the year through August increased by 10.1% over the same period last year.

 

Results from CSN’s Steel Operation

 

 

  • Total sales came to 1,301 tonnes in 3Q17, 11% higher than 2Q17, broken down as follows: 62% from the domestic market, 32% from our subsidiaries abroad and 6% from exports. 

     

    • In 3Q17, CSN’s domestic steel sales came to 802,000 tonnes, 23% higher than in 2Q17. Of this total, 730,000 tonnes corresponded to flat steel and 72,000 tonnes to long steel.

     

    • Foreign steel sales amounted to 499,000 tonnes in 3Q17, 4% down on the previous three months. Of this total, exports reached 74,000 tonnes, the overseas subsidiaries sold 425,000 tonnes, 155,000 of which by LLC, 177,000 by SWT and 92,000 by Lusosider.

     

    • In the third quarter, CSN maintained its high share of coated products as a percentage of total sales volume, following the strategy of adding more value to its product mix. Sales of coated products such as galvanized
      items and tin plate accounted for 56% of flat steel sales, considering all the markets in which
      the Company operates. The foreign market was one of the quarter's highlights, with the share of coated
      products remaining high, at 88% in 3Q17.

     

    • Net revenue totaled R$3,399 million in 3Q17, 11% up on 2Q17. Net average revenue per tonne stood at R$2,519,in line with 2Q17.


    • The slab production reached 1.1 million tonnes in 3Q17, in line with 2Q17. Flat rolled steel production totaled 903,000 tonnes.  

     

     

     

     


     
     

    ·         The slab production reached 1.1 million tonnes in 3Q17, in line with 2Q17. Flat rolled steel production totaled 903,000 tonnes.  

     

    Flat Steel  Production

    3Q16

    2Q17

    3Q17

    Change

    (thousand tonnes)

    3Q17

    x

    2Q17

    3Q17

    x

    3Q16

    Total Slabs (President Vargas Plant + Third Parties)

    857

    1,108

    1,069

    (4%)

    25%

    Slab Production

    738

    1,070

    1,065

    0%

    44%

    Third-Party Slabs

    119

    38

    4

    -

    (96%)

    Total Rolled Flat Steel

    835

    943

    903

    (4%)

    8%

    Total Long Products

    90

    56

    50

    (10%)

    (44%)

     

    ·         COGS moved up by 8% over the previous quarter, to R$2,845 million, chiefly due the higher sale volume.

     

    ·          The production cost amounted to R$1,906 million in 3Q17, 9% more than in 2Q17, particularly due to the better prices in purchase of raw material, especially to ore price, increased own consumption of coke, in addition to the end of maintenance of the blast furnace #3 and the hot strip mill.

     

    ·         The slab production cost came to R$1,286/t, 9% down on 2Q’s R$1,414.

     

     

    ·         Adjusted EBITDA amounted to R$465 million in 3Q17, 42% up on the R$327 million recorded in 2Q17, accompanied by a 3 p.p. incline the quarter before. Adjusted EBITDA margin increased to 13.7%, 3p.p. higher than in the previous quarter.

     

     

    Mining

     

    After the sharp drop in prices in 2Q17, the closure of induction furnaces in China was a result of a decrease in steel supply, raising the utilization levels of the plants’ installed capacity and margins. In this context, the commodity’s price averaged US$70.90/dmt (Platts, Fe62%, N. China) in 3Q17, 13% up on the previous quarter.

     


     
     
     

     

    In 3Q17, seaborne freight charges continued positively impacted by higher export volumes and, additionally, a recovery in oil prices. In this scenario, maritime freight costs on Route CI-C3 (Tubarão-Qingdao) averaged US$15.13/t in 3Q17, 12% up on 2Q17.

     

    Results from CSN’s Mining Operations

     

    ·         In 3Q17, iron ore production totaled 7.7 million tonnes, 3% down on 2Q17, 1.4 million tonnes volume was purchased by third parties.

     

    ·         Iron ore sales  reached 7.9 million tonnes in 3Q17, 2% up on 2Q17. In the quarter, 1.3 million tonnes from CSN Mineração were sold to CSN’s Presidente Vargas Plant.

     

    Production Volume and Mining Sales        Change 
     (thousand t)  3Q16  2Q17  3Q17   3Q17 x 2Q17  3Q17 x 3Q16 
    Iron Ore Production¹  8.553  7.948  7.738  -3%  -10% 
    Third Parties Purchase  797  167  1.419  752%  78% 
    Total Production + Purchase  9.350  8.114  9.157  13%  -2% 
    UPV Sale  1.114  1.307  1.321  1%  19% 
    Third Parties Sales Volume  9.116  6.511  6.632  2%  -27% 
    Total Sales  10.230  7.818  7.953  2%  -22% 

     

     

    (CFR + FOB* - US$/wmt delivered to China)

    The table above shows the price of the two modalities, CFR+FOB.

     

     

    Logistics

    Railway Logistics: Net revenue stood at R$364 million in 3Q17, generating EBITDA of R$164 million, accompanied by an EBITDA margin of 45%.

     

    Port Logistics: Sepetiba Tecon handled nearly 51,000 containers, in addition to  250,000 tonnes of steel products. Net revenue totaled R$60 million, generating EBITDA of R$21 million, accompanied by an EBITDA margin of 35%.

     


     
     

     

     

     

     

      3Q16  2Q17  3Q17  Change 
    Sepetiba TECON Highlights   3Q17 x 2Q17  3Q17 x 3Q16 
    Containers Volume (thousand units)  34  39  51  31%  49% 
    Steel Products Volume (thousand t)  127  212  250  18%  97% 
    General Cargo Volume (thousand t)  5  1  0  -61%  -95% 

     

     

    Cement

     

    Preliminary figures from SNIC (the Cement Industry Association) indicate domestic cement sales of 40.5 million tonnes from January to September 2017, 7.4% less than in the same period the year before.

     

     

    Results from CSN’s Cement Operations

     

    In 3Q17, cement sales totaled 982,000 tonnes, 17% up on 2Q17, while net revenue amounted to R$142 million.

     

     Cement Highlights 3Q16  2Q17  3Q17  Change 
    (thousand t)  3Q17 x 2Q17  3Q17 x 3Q16 
    Total Production 859,78128 840,752 982 17%  14% 
    Total Sales 849,95745 830,625 998 20%  17% 

     

     

    Energy

     

    According to the Energy Research Company (EPE), the trend of stability in the energy market continued in August, with consumption edging down 0.1% year-over-year, to 37,583 GWh. In the year through August, consumption remained in line with the same period last year. Considering the Brazilian regions, the South grew by 4.0% and the North by 3.4%, while the Northeast fell by 2.1%, the Southeast by 1.3% and the Midwest by 0.1%. The captive market of the distribution companies fell by 6.3% in the month, while free consumption increased by 15.3%.

     

    Results from CSN’s Energy Operations

     

    In 3Q17, net revenue from energy operations totaled R$103 million, EBITDA stood at R$27 million and EBITDA margin was 26.5%.

     


     
     

    Capital Market

     

    CSN’s shares appreciated by 32% in 3Q17, while the IBOVESPA moved up by 17%. Daily traded volume on the B3 S.A. – BOLSA BRASIL BALCÃO averaged R$72.6 million. On the New York Stock Exchange (NYSE), CSN’s American Depositary Receipts (ADRs) appreciated by 17%, versus the Dow Jones’ 4% appreciation. On the NYSE, daily traded volume of CSN’s ADRs averaged US$7.4 million.

     

    3Q17

    Number of shares in thousands

    1,387,524

    Market Cap:

     

    Closing price (R$/share)

    9.61

    Closing price (US$/ADR)

                         2.96

    Market cap (R$ million)

    13,334

    Market cap (US$ million)

                       4,107

    Total return including dividends and interest on equity

     

    CSNA3

    32%

    SID

    32%

    Ibovespa

    17%

    Dow Jones

    4%

    Volume

     

    Daily average (thousand shares)

    8,311

    Daily average (R$ thousand)

    72,650

    Daily average (thousand ADRs)

    2,684

    Daily average (US$ thousand)

    7,405

    Source: Bloomberg

     

     

    Webcast - 3Q17 Earnings Presentation                                                 Investor Relations Team

    Certain of the statements contained herein are forward-looking statements, which express or imply results, performance or events that are expected in the future. These include future results that may be implied by historical results and the statements under ‘Outlook’. Actual results, performance or events may differ materially from those expressed or implied by the forward-looking statements as a result of several factors, such as the general and economic conditions in Brazil and other countries, interest rate and exchange rate levels, protectionist measures in the U.S., Brazil and other countries, changes in laws and regulations and general competitive factors (on a global, regional or national basis).

     

     

     


     
     

     

    INCOME STATEMENT

    CONSOLIDATED – Corporate Law (In thousand of R$)

     

    3Q16

    Unaudited
    2Q17

    Unaudited
    3Q17

     Net Revenues

                 4,469,240

                 4,310,609

                 4,809,671

     Domestic Market

                 2,100,371

                 1,962,864

                 2,382,265

     Foreign Market

                 2,368,869

                 2,347,745

                 2,427,406

     Cost of Goods Sold (COGS)

                (3,157,057)

                (3,325,893)

                (3,596,936)

     COGS, excluding depreciation

                (2,851,368)

                (2,977,952)

                (3,260,372)

     Depreciation allocated to COGS

                   (305,689)

                   (347,941)

                   (336,564)

     Gross Profit

                 1,312,183

                     984,716

                 1,212,735

     Gross Margin (%)

    29%

    23%

    25%

     Selling expenses

                   (403,112)

                   (477,063)

                   (412,345)

     General and administrative expenses

                   (114,429)

                   (106,801)

                     (70,646)

     Depreciation allocated to SG&A

                        (5,662)

                        (7,829)

                        (7,727)

     Other operation income (expense), net

                        (7,723)

                     (99,025)

                     (97,824)

     Share of profits (losses) of investees

                       26,117

                       39,393

                       38,002

     Operational Income before Financial Results

                     807,374

                     333,391

                     662,195

     Net Financial Results

                   (744,345)

                   (828,619)

                   (277,797)

     Profit before finance income (costs) and taxes

                       63,029

                   (495,228)

                     384,398

     Income Tax and Social Contribution

                   (122,796)

                   (144,728)

                   (128,214)

     Continued operations, net

                     (59,767)

                   (639,956)

                     256,184

     Discontinued Operations, Net

                        (6,984)

                                -  

                                    

     Profit / Loss before period

                     (66,751)

                   (639,956)

                     256,184

     

     

     


     
     

     
     

     

     

     

     

    BALANCE SHEET

    Company Corporate Law (In Thousand of R$)

     

    Consolidated

     

    12/31/2016

    Unaudited
    09/31/2017

     Current assets

    12,444,918

    11,653,843

    Cash and cash equivalents

    5,631,553

    4,138,770

    Trade receivables

    1,997,216

    2,240,375

    Inventories

    3,964,136

    4,246,458

    Other current assets

    852,013

    1,028,240

     Non-current assets

    31,708,705

    32,219,870

    Long-term receivables

    1,745,971

    1,778,197

    Investments measured at amortized cost

    4,568,451

    5,293,244

    Property, plant and equipment

    18,135,879

    17,875,819

    Intangible assets

    7,258,404

    7,272,610

     Total assets

    44,153,623

    43,873,713

     Current liabilities

    5,496,683

     

    Payroll and related taxes

    253,837

    296,167

    Suppliers

    1,763,206

    2,249,151

    Taxes payable

    231,861

    269,168

    Borrowings and financing

    2,117,448

    3,983,810

    Other payables

    1,021,724

    950,560

    Provision for tax, social security, labor and civil risks

    108,607

    100,068

     Non-current liabilities

    31,272,419

    28,058,141

    Borrowings and financing

    28,323,570

    25,020,128

    Deferred Income Tax and Social Contribution

    1,046,897

    1,167,974

    Other payables

    131,137

    129,811

    Provision for tax, social security, labor and civil risks

    704,485

    718,592

    Other provisions

    1,066,330

    1,021,636

     Shareholders’ equity

    7,384,521

    7,966,648

    Paid-in capital

    4,540,000

    4,540,000

    Capital reserves

    30

    30

    Acumulated Losses

    (1,301,961)

    (1,649,259)

    Statutory reserve

    2,956,459

    3,804,741

    Non-controlling interests

    1,189,993

    1,271,136

     TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

    44,153,623

    43,873,713

     
     
     
     

     
     

     

     

    CASH FLOW STATEMENT

    CONSOLIDATED - Corporate Law (In Thousand of R$)

     

    Unaudited          2Q17

    Unaudited          3Q17

     Net cash generated by operating activities

                  (386,723)

                   585,411

     (Net Losses) / Net income attributable to controlling shareholders

                  (659,394)

                   226,466

     Loss for the period attributable to non-controlling interests

                      19,438

                      29,718

     Charges on borrowings and financing

                   616,247

                   561,341

     Depreciation, depletion and amortization

                   366,400

                   355,400

     Share of profits (losses) of investees

                    (39,393)

                    (38,002)

     Deferred income tax and social contribution

                      72,069

                      37,309

     Foreign exchange and monetary variations, net

                   431,813

                  (414,301)

     Write off fixed assets and intangible

                    (17,016)

                        4,484

     Environmental liabilities and Deactvation Provisions

                    (38,076)

                      (9,136)

     Fiscal, Social Security, Labor, Civil and Environmental Provisions

                      31,635

                    (46,068)

     Working Capital

                  (606,281)

                   502,326

     Accounts Receivable

                  (469,861)

                   163,272

     Trade Receivables – Related Parties

                      39,655

                      (7,165)

     Inventory

                  (136,027)

                   184,935

     Interest receive - Related Parties

                      (4,536)

                      (6,748)

     Judicial Deposits

                      (8,137)

                      (9,323)

     Suppliers

                   104,457

                   183,578

     Taxes and Contributions

                    (61,144)

                      41,197

     Others

                    (70,688)

                    (47,420)

     Others Payments and Receipts

                  (564,165)

                  (624,126)

     Interest Expenses

                  (564,165)

                  (624,126)

     Cash Flow from Investment Activities

                  (234,503)

                  (297,953)

     Fixed Assets/Intangible

                  (239,127)

                  (288,498)

     Derivative transactions

                        4,457

                      10,717

     Loans / Receive loans - related parties

                        2,644

                                  

     Short-term investment, net of redeemed amount

                      (2,477)

                    (20,172)

     Cash Flow from Financing Companies

                    (92,624)

                  (500,336)

     Borrowings and financing raised, net of transaction costs

                                  

                   171,000

     Borrowing amortizations - principal

                    (92,624)

                  (671,336)

     Foreign Exchange Variation on Cash and Cash Equivalents

                (10,607)

                  2,971

     Free Cash Flow

              (724,457)

              (209,907)

     

     
     
     

     
     

     

     

     

    SALES VOLUME CONSOLIDATED (thousand tonnes)

     
      3Q16 2Q17 3Q17 Change
      3Q17 x 2Q17  3Q17 x 3Q16 
    Flat Steel  682  592  730  138  48 
    Slabs  -  -  1  1  1 
    Hot Rolled  233  216  267  52  34 
    Cold Rolled  129  117  155  38  27 
    Galvanized  218  191  234  43  15 
    Tin Plates  102  68  73  4  (29) 
    Long Steel UPV  49  60  72  12  24 
    DOMESTIC MARKET  730  652  802  150  72 
     
      3Q16  2Q17  3Q17  3Q17 x 2Q17  3Q17 x 3Q16 
    Flat Steel  282  316  321  5  39 
    Hot Rolled  16  14  16  1  (0) 
    Cold Rolled  19  24  22  (2)  3 
    Galvanized  212  232  233  1  20 
    Tin Plates  35  46  51  5  16 
    Long Steel (profiles)  159  205  177  (27)  18 
    FOREIGN MARKET  441  521  499  (23)  58 
     
      3Q16  2Q17  3Q17  3Q17 x 2Q17  3Q17 x 3Q16 
    Flat Steel  964  909  1.051  142  87 
    Slabs  -  -  1  1  1 
    Hot Rolled  249  230  283  53  34 
    Cold Rolled  148  141  177  36  29 
    Galvanized  431  423  466  43  35 
    Tin Plates  136  115  124  9  (12) 
    Long Steel UPV  49  60  72  12  23 
    Long Steel (profiles)  159  205  177  (28)  18 
    TOTAL MARKET  1.172  1.174  1.301  127  129 
     

     

    SIGNATURE
     
     
    Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
    Date: December 22, 2017
     
    COMPANHIA SIDERÚRGICA NACIONAL
    By:
    /S/ Benjamin Steinbruch

     
    Benjamin Steinbruch
    Chief Executive Officer

     

     
    By:
    /S/ David Moise Salama

     
    David Moise Salama
    Executive Officer

     
     

     

     
    FORWARD-LOOKING STATEMENTS

    This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.