GERDAU. 2Q01 1Q01 2Q00 6 months 2001

Transcription

1 GERDAU Relevant Information 2 nd Quarter 2001 Dear Shareholders: The year of 2001 started under the stimulus of the good performance of the Brazilian economy in the previous year: strong industrial growth, inflation under control, exports on the rise and the public accounts in balance. Some extraordinary facts, however, such as the economic turmoil in which Argentina finds itself and the low levels of water at the hydroelectric dams in the South east and Northeast regions in Brazil are beginning to harm this situation. Even so, the results at the Gerdau companies performed well in the period. OUTPUT The consolidated crude steel output of the Gerdau companies in the second quarter of 2001 reached 1.7 million metric tons. This represents a reduction 5.2% over that of the first quarter. This reduction, however is due to the power rationing program put in place as of the month of June and mainly due to the scheduled down time of the blast furnace at Açominas between June 4th and July 11th. In rolled products, the output reached 1.6 million metric tons, 5.1% greater than that of the first quarter. From April through June, Gerdau operations in Brazil added to the proportional output of Açominas totaled 1 million metric tons of crude steel. This is 10.6% less than in the first quarter. The output of rolled products, in the same period, reached 910 thousand metric tons, 4% more than in the first three months of the year. In North America, AmeriSteel, in the United States, and Courtice and MRM, in Canada, produced all together 607 thousand metric tons of crude steel in the second quarter, 3.2% more than in the first quarter. The output of rolled products reached 564 thousand metric tons, 3.9% more than in the previous period. At the South American mills (Uruguay, Chile and Argentina), crude steel output was of 75 thousand metric tons and rolled products output was 97 thousand metric tons in the months of April, May and June, presenting an increase of 14.7% and 25.9% respectively, over the first three months of the year. Production (1,000 t) 2Q01 1Q01 2Q00 6 months months 2000 Crude Steel In Brazil 1,021 1,142 1,109 2,163 2,120 Abroad ,336 1,378 Total 1,703 1,796 1,799 3,499 3,498 Rolled Products In Brazil ,784 1,669 Abroad ,282 1,303 Total 1,571 1,495 1,493 3,066 2,972 SALES In the second quarter, consolidated sales reached 1.8 million metric tons, 3.5% less than in the first quarter, due to the reduction in the reselling of flat steel products as well as in exports due to the rationing of power and the temporary shutting down of the blast furnace at Açominas. The sales of the companies in Brazil (Gerdau S.A. and the stake in Açominas), represented 1.1 million metric tons from April to June. This was 6.7% less than that of the months of January

2 through March. In the domestic market, sales totaled 951 thousand metric tons, an increase of 2.1% over the figures of the first quarter. Exports totaled 147 thousand metric tons with a decrease of 40.4%. Abroad, sales reached 710 thousand metric tons in the quarter, an increase of 1.9%. Of this volume, 607 thousand metric tons were sold by the units in North America and 103 thousand metric tons by those in South America. Sales (1,000 t) 2Q01 1Q01 2Q00 6 months months 2000 Brazil Consolidated Domestic ,882 1,719 Exports Total 1,098 1,177 1,086 2,275 2,142 Abroad North America ,196 1,159 South America Total ,407 1,328 Total 1,808 1,874 1,756 3,682 3,470 RESULTS In consolidated terms, the Gerdau companies grossed R$ 1.8 billion in the second quarter this year 11.7% higher than in the first quarter. This growth is explained mainly due to the increase in revenues of operations abroad, the conversion into reais of the amounts in U.S. dollars and because of the relative recovery of prices in certain products in Brazil. Net revenues reached R$ 1.5 billion in the quarter, an increase of 12.6% when compared to the first quarter. Gross margin increased to 26.14% up from 24.53% from the first quarter to the second. This is explained in part by the factors mentioned above along with an evolution of 10.2% of cost of goods sold and an increase of 12.6% of net revenues. In the second quarter, EBITDA (earnings before financial expenses, taxes, equity pick up, depreciation and amortization) reached R$ million, an increase of 18.6% when compared to the period between January and March this year. EBITDA margin, that was of 19.48% in the first quarter, moved up to 20.52% in the second quarter. Net financial expenses were 47% lower in the second quarter compared to that of the first quarter. The first quarter total was R$ 95.6 million compared to R$ million in the first quarter. This reduction is due the following factors: less devaluation of the real, increase in value of the Canadian dollar and a smaller indebtedness in US dollars out of Brazil. Equity pick up reached R$ 50.1 million in the second quarter, 52.4% lower than in the first quarter. As with financial expenses, this result is due partly because of the lower devaluation of the real and the valuation of the Canadian dollar. The consolidated net profit of the second quarter reached R$ million, an increase of 50.2% over the net income of R$ 91.5 million of the first quarter. Net margin went to 9.06% from 6.79%.

3 2Q01 1Q01 2Q00 6 months months 2000 R$ million Gross sales revenue Brazil Consolidated 1,053 1, ,072 1,910 North America , South America Total 1,813 1,624 1,546 3,437 2,980 Net sales revenue Brazil Consolidated ,495 North America , South America Total 1,516 1,346 1,301 2,862 2,517 EBITDA Brazil Consolidated North America South America Total Net profit Brazil Consolidated North America South America 1 2 (1) 3 3 Total INVESTMENTS This quarter the Gerdau companies invested US$ 34.4 million in fixed assets of which US$ 27.3 million in Brazil and US$ 7.1 million in industrial units abroad. The year s accumulated investments totaled US$ 82.5 million of which US$ 61.3 million in Brazil and US$ 21.1 million abroad. Investments made this year were directed to the expansion of the ARMAFER service center network and the technological update of the industrial units in Brazil and abroad. FINANCIAL DEBT The consolidated indebtedness of the Gerdau companies, as of June 30th, totaled R$ 2.7 billion. The breakdown is R$ 3.4 billion total debt and financial investment of R$ million. Comparing to the position on March 31st, the net debt suffered an increase of 0.6% due to the devaluation of the Brazilian currency regarding the amounts contracted in US dollars. Of the total debt of R$ 3.4 billion, 49.9% are short term (R$ 1.7 billion) whereas the balance of 50.1% (R$ 1.7 billion) are long term. In the short term indebtedness, R$ million are denominated in reais and R$ 1.4 billion is in foreign currency. Long term debt has R$ million are in reais and R$ 1.1 billion are in foreign currency. Of the debt in foreign currency of R$ 2.5 billion - short and long term -, R$ 1.5 billion were contracted by the units abroad and R$ 1.0 billion by the companies in Brazil. Of the total contracted in Brazil, R$ 461 million are protected by an FX hedge. At the end of the quarter, cash & equivalents totaled R$ million of which R$ million were invested by the companies abroad.

4 CAPITAL MARKETS On August 15th, the Gerdau companies will be paying dividends in the form of interest over capital stock, relative to the dividends of the second semester of Gerdau S.A. will be paying R$ for each lot of one thousand shares of common stock, and R$ for those that hold one thousand shares of preferred stock in a grand total of R$ 48.1 million. Metalúrgica Gerdau S.A. will be distributing R$ 21 million of which R$ for common stockholders and R$ for preferred shares stockholders. As of June 26th, the Gerdau S.A. shares begun being traded within the parameters of Corporate Governance regulations Level 1 at the São Paulo Stock Exchange. In the first quarter of 2001, trading of the Metalúrgica Gerdau S.A. stock moved R$ million at the São Paulo Stock Exchange (daily average of R$ 1.2 million) 25.8% more than in the first semester of There were 5,548 deals done with 4.7 billion shares negotiated, an evolution of 95.6% and 103.3% respectively. The shares of Gerdau S.A. traded at the São Paulo Stock Exchange increased 69.4% in the semester reaching the mark of 18.8 billion shares. There were 17,678 deals (+81.8%), which moved R$ million (daily average of R$ 2.9 million). At the New York Stock Exchange (NYSE), trades totaled 4.2 million Gerdau S.A. ADRs, an increase of 218.1% compared to the first semester of the year These trades moved US$ 37.3 million in the period (+52.5%), a daily average of US$ 333 thousand. As of July, the Gerdau web site is offering more detailed information on financial data in its Investor Relations section. The area offers data that is complementary to that of the quarterly results in addition to the by-laws, dividend payout, minutes, quotes and historical data among other info on the Gerdau companies. MANAGEMENT

5 ATIVO / ASSETS METALÚRGICA GERDAU S.A. Balanço patrimonial consolidado / Consolidated balance sheet CIRCULANTE / CURRENT ASSETS Disponibilidades e aplicações financeiras / Cash and cash equivalents Clientes / Trade accounts receivable Estoques / Inventories Outros / Others Total do circulante / Total current assets REALIZÁVEL A LONGO PRAZO / LONG-TERM RECEIVABLES Depósitos compulsórios e outros / Escrow deposits and other receivables Total do realizável a longo prazo / Total long-term receivables PERMANENTE / PERMANENT ASSETS Investimentos / Investments Imobilizado / Fixed assets Total do ativo permanente / Total permanent assets TOTAL DO ATIVO / TOTAL ASSETS PASSIVO / LIABILITIES CIRCULANTE / CURRENT LIABILITIES Fornecedores / Trade accounts payable Financiamentos / Loans and financing Outros / Others Total do circulante / Total current liabilities EXIGÍVEL A LONGO PRAZO / LONG-TERM LIABILITIES Financiamentos / Loans and financing Debêntures / Debentures Provisão para contingências e outros / Reserve for contingencies and others Total do exigível a longo prazo / Total long-term liabilities RESULTADO DE EXERCÍCIOS FUTUROS / DEFERRED INCOME PATRIMÔNIO LÍQUIDO / SHAREHOLDERS EQUITY Capital social / Capital stock Reservas/Lucros acumulados / Capital reserves/retained earnings Total do patrimônio líquido / Total shareholders equity TOTAL DO PASSIVO / TOTAL LIABILITIES AND SHAREHOLDERS EQUITY /06/01 06/30/01 31/03/01 03/31/01 30/06/00 06/30/00

6 METALÚRGICA GERDAU S.A. Demonstração do resultado consolidado / Consolidated income statement 2 o Trim nd Quarter o Trim st Quarter o Trim nd Quarter 2000 Acum. 6 meses 2001 Acum. 6 months 2001 Acum. 6 meses 2000 Acum. 6 months 2000 Receita bruta de vendas Gross sales revenue Impostos sobre vendas Taxes on sales ( ) ( ) ( ) ( ) ( ) Fretes e descontos Freight and discount (85.988) (77.661) (58.551) ( ) ( ) Receita líquida de vendas Net sales revenue Custo das vendas Cost of sales ( ) ( ) ( ) ( ) ( ) Lucro bruto Gross profit Despesas com vendas Selling expenses (61.374) (53.472) (52.301) ( ) ( ) Despesas financeiras Financial expenses ( ) ( ) ( ) ( ) ( ) Receitas financeiras Financial revenue Despesas gerais e administrativas General and administrative expenses ( ) ( ) ( ) ( ) ( ) Equivalência patrimonial Equity pick-up Outras despesas/receitas operacionais Other operating expenses/revenue (4.685) Lucro operacional Operating profit Despesas/receitas não-operacionais Non-operating expenses/revenue (1.364) (247) 148 (1.611) Participações estatutárias Statutory participation (4.992) - (4.989) (4.992) (4.989) Lucro antes de impostos Profit before income tax and social contribution Imposto de renda e contribuição social Income tax and social contribution (16.701) 608 (26.266) (16.093) (57.031) Lucro líquido do período Net profit for the period

7 METALÚRGICA GERDAU S.A. Fluxo de Caixa Consolidado / Consolidated Cash Flow (pela legislação societária - em milhares de reais / by corporate law - in thousands of reais) 2 o Trim nd Quarter o Trim st Quarter o Trim nd Quarter 2000 Acum. 6 meses 2001 Acum. 6 months 2001 Acum. 6 meses 2000 Acum. 6 months 2000 Lucro líquido do período Net income Equivalência Patrimonial Equity Pick up (50.061) ( ) (13.637) ( ) (3.623) Imposto de renda e contribuição social Income tax and social contribution (608) Depreciações e amortizações Depreciation and amortization Juros e variações monetárias não-caixa Interest and non-cash monetary variations (37.280) Variação do capital de giro Working capital variarion (46.629) (47.275) (95.475) (93.904) ( ) Caixa líquido da atividade operacional Net operational cash Aquisição / alienação de imobilizado Permanent assets purchases / disposals (56.233) (97.228) (93.139) ( ) ( ) Aquisição de diferido Deferred charges (1.608) (84) 6 (1.692) - Aquisição / alienação de investimentos Investments purchases / disposals (1.584) (913) (17.788) (2.497) (28.862) Aplicação de caixa em investimentos Funds used for investments (59.425) (98.225) ( ) ( ) ( ) Financiamento do capital de giro Working capital financing (34.797) (6.743) (45.949) (41.540) (17.542) Aportes de recursos de longo prazo Long term debt increase Amortização de financiamentos de longo prazo Long term debt repayment ( ) ( ) (64.827) ( ) ( ) Pagamento de dividendos/juros e participações Dividend/Interest and statutory participation payment (939) (79.853) (178) (80.792) (64.867) Caixa líquido da atividade financeira Net funds from financial activities ( ) (86.234) (18.687) ( ) ( ) Variação no saldo do caixa Cash balance variation (24.544) (467) ( ) Saldo de caixa / Cash balance No início do período At the beginning of the period No final do período At the end of the period

8 ATIVO / ASSETS METALÚRGICA GERDAU S.A. Balanço patrimonial não-consolidado / Unconsolidated balance sheet CIRCULANTE / CURRENT ASSETS Disponibilidades e aplicações financeiras / Cash and cash equivalents Clientes / Trade accounts receivable Estoques / Inventories Outros / Others Total do circulante / Total current assets REALIZÁVEL A LONGO PRAZO / LONG-TERM RECEIVABLES Depósitos compulsórios e outros / Escrow deposits and other receivables Total do realizável a longo prazo / Total long-term receivables PERMANENTE / PERMANENT ASSETS Investimentos / Investments Imobilizado / Fixed assets Total do ativo permanente / Total permanent assets TOTAL DO ATIVO / TOTAL ASSETS PASSIVO / LIABILITIES CIRCULANTE / CURRENT LIABILITIES Fornecedores / Trade accounts payable Financiamentos / Loans and financing Outros / Others Total do circulante / Total current liabilities EXIGÍVEL A LONGO PRAZO / LONG-TERM LIABILITIES Financiamentos / Loans and financing Debêntures / Debentures Provisão para contingências e outros / Reserve for contingencies and others Total do exigível a longo prazo / Total long-term liabilities RESULTADO DE EXERCÍCIOS FUTUROS / DEFERRED INCOME PATRIMÔNIO LÍQUIDO / SHAREHOLDERS EQUITY Capital social / Capital stock Reservas/Lucros acumulados / Capital reserves/retained earnings Total do patrimônio líquido / Total shareholders equity TOTAL DO PASSIVO / TOTAL LIABILITIES AND SHAREHOLDERS EQUITY /06/01 06/30/01 31/03/01 03/31/01 30/06/00 06/30/00

9 METALÚRGICA GERDAU S.A. Demonstração do resultado não-consolidado / Unconsolidated income statement 2 o Trim nd Quarter o Trim st Quarter o Trim nd Quarter 2000 Acum. 6 meses 2001 Acum. 6 months 2001 Acum. 6 meses 2000 Acum. 6 months 2000 Receita bruta de vendas Gross sales revenue Impostos sobre vendas Taxes on sales Fretes e descontos Freight and discount Receita líquida de vendas Net sales revenue Custo das vendas Cost of sales Lucro bruto Gross profit Despesas com vendas Selling expenses Despesas financeiras Financial expenses (2.145) (2.081) (3.227) (4.226) (6.477) Receitas financeiras Financial revenue Despesas gerais e administrativas General and administrative expenses (3.629) (2.934) (3.095) (6.563) (5.360) Equivalência patrimonial Equity pick-up Outras despesas/receitas operacionais Other operating expenses/revenue Lucro operacional Operating profit Despesas/receitas não-operacionais Non-operating expenses/revenue - (3) 19 (3) Participações estatutárias Statutory participation (1.331) - (1.278) (1.331) (1.278) Lucro antes de impostos Profit before income tax and social contribution Imposto de renda e contribuição social Income tax and social contribution (1.823) 780 (1.817) (1.043) (5.535) Lucro líquido do período Net profit for the period Lucro por lote de mil ações Earnings per lot of one thousand shares - R$ 3,54 2,30 2,80 5,83 5,51 Valor patrimonial por lote de mil ações Equity value per lot of one thousand shares - R$ 60,53 58,00 52,49 60,53 52,49 Número de ações emitidas (milhões) Shares outstanding (million)

10 ATIVO / ASSETS GERDAU S.A. Balanço patrimonial consolidado / Consolidated balance sheet CIRCULANTE / CURRENT ASSETS Disponibilidades e aplicações financeiras / Cash and cash equivalents Clientes / Trade accounts receivable Estoques / Inventories Outros / Others Total do circulante / Total current assets REALIZÁVEL A LONGO PRAZO / LONG-TERM RECEIVABLES Depósitos compulsórios e outros / Escrow deposits and other receivables Total do realizável a longo prazo / Total long-term receivables PERMANENTE / PERMANENT ASSETS Investimentos / Investments Imobilizado / Fixed assets Total do ativo permanente / Total permanent assets TOTAL DO ATIVO / TOTAL ASSETS PASSIVO / LIABILITIES CIRCULANTE / CURRENT LIABILITIES Fornecedores / Trade accounts payable Financiamentos / Loans and financing Outros / Others Total do circulante / Total current liabilities EXIGÍVEL A LONGO PRAZO / LONG-TERM LIABILITIES Financiamentos / Loans and financing Debêntures / Debentures Provisão para contingências e outros / Reserve for contingencies and others Total do exigível a longo prazo / Total long-term liabilities RESULTADO DE EXERCÍCIOS FUTUROS / DEFERRED INCOME PATRIMÔNIO LÍQUIDO / SHAREHOLDERS EQUITY Capital social / Capital stock Reservas/Lucros acumulados / Capital reserves/retained earnings Total do patrimônio líquido / Total shareholders equity TOTAL DO PASSIVO / TOTAL LIABILITIES AND SHAREHOLDERS EQUITY /06/01 06/30/01 31/03/01 03/31/01 30/06/00 06/30/00

11 GERDAU S.A. Demonstração do resultado consolidado / Consolidated income statement 2 o Trim nd Quarter o Trim st Quarter o Trim nd Quarter 2000 Acum. 6 meses 2001 Acum. 6 months 2001 Acum. 6 meses 2000 Acum. 6 months 2000 Receita bruta de vendas Gross sales revenue Impostos sobre vendas Taxes on sales ( ) ( ) ( ) ( ) ( ) Fretes e descontos Freight and discount (85.988) (77.661) (58.551) ( ) ( ) Receita líquida de vendas Net sales revenue Custo das vendas Cost of sales ( ) ( ) ( ) ( ) ( ) Lucro bruto Gross profit Despesas com vendas Selling expenses (61.374) (53.472) (52.301) ( ) ( ) Despesas financeiras Financial expenses ( ) ( ) ( ) ( ) ( ) Receitas financeiras Financial revenue Despesas gerais e administrativas General and administrative expenses ( ) ( ) ( ) ( ) ( ) Equivalência patrimonial Equity pick-up Outras despesas/receitas operacionais Other operating expenses/revenue (4.703) Lucro operacional Operating profit Despesas/receitas não-operacionais Non-operating expenses/revenue (1.364) (243) 127 (1.607) (4.259) Participações estatutárias Statutory participation (3.661) - (3.711) (3.661) (3.711) Lucro antes de impostos Profit before income tax and social contribution Imposto de renda e contribuição social Income tax and social contribution (14.812) 199 (24.120) (14.613) (53.466) Lucro líquido do período Net profit for the period

12 GERDAU S.A. Fluxo de Caixa Consolidado / Consolidated Cash Flow (pela legislação societária - em milhares de reais / by corporate law - in thousands of reais) 2 o Trim nd Quarter o Trim st Quarter o Trim nd Quarter 2000 Acum. 6 meses 2001 Acum. 6 months 2001 Acum. 6 meses 2000 Acum. 6 months 2000 Lucro líquido do período Net income Equivalência Patrimonial Equity Pick up (43.523) ( ) (13.599) ( ) (3.533) Imposto de renda e contribuição social Income tax and social contribution (199) Depreciações e amortizações Depreciation and amortization Juros e variações monetárias não-caixa Interest and non-cash monetary variations (18.278) Variação do capital de giro Working capital variarion (46.769) (37.210) (88.388) (83.979) ( ) Caixa líquido da atividade operacional Net operational cash Aquisição / alienação de imobilizado Permanent assets purchases / disposals (56.233) (97.228) (92.791) ( ) ( ) Aquisição de diferido Deferred charges (1.608) (84) 6 (1.692) - Aquisição / alienação de investimentos Investments purchases / disposals (1.545) (8.913) (11.927) (10.458) (26.082) Aplicação de caixa em investimentos Funds used for investments (59.386) ( ) ( ) ( ) ( ) Financiamento do capital de giro Working capital financing (38.801) (11.678) (61.284) (50.479) (84.031) Aportes de recursos de longo prazo Long term debt increase Amortização de financiamentos de longo prazo Long term debt repayment ( ) ( ) (64.827) ( ) ( ) Pagamento de dividendos/juros e participações Dividend/Interest and statutory participation payment (937) (80.379) (98) (81.316) (62.498) Caixa líquido da atividade financeira Net funds from financial activities ( ) (87.274) (32.518) ( ) ( ) Variação no saldo do caixa Cash balance variation (23.503) (5.897) 139 ( ) Saldo de caixa / Cash balance No início do período At the beginning of the period No final do período At the end of the period

13 ATIVO / ASSETS GERDAU S.A. Balanço patrimonial não-consolidado / Unconsolidated balance sheet CIRCULANTE / CURRENT ASSETS Disponibilidades e aplicações financeiras / Cash and cash equivalents Clientes / Trade accounts receivable Estoques / Inventories Outros / Others Total do circulante / Total current assets REALIZÁVEL A LONGO PRAZO / LONG-TERM RECEIVABLES Depósitos compulsórios e outros / Escrow deposits and other receivables Total do realizável a longo prazo / Total long-term receivables PERMANENTE / PERMANENT ASSETS Investimentos / Investments Imobilizado / Fixed assets Total do ativo permanente / Total permanent assets TOTAL DO ATIVO / TOTAL ASSETS PASSIVO / LIABILITIES CIRCULANTE / CURRENT LIABILITIES Fornecedores / Trade accounts payable Financiamentos / Loans and financing Outros / Others Total do circulante / Total current liabilities EXIGÍVEL A LONGO PRAZO / LONG-TERM LIABILITIES Financiamentos / Loans and financing Debêntures / Debentures Provisão para contingências e outros / Reserve for contingencies and others Total do exigível a longo prazo / Total long-term liabilities RESULTADO DE EXERCÍCIOS FUTUROS / DEFERRED INCOME PATRIMÔNIO LÍQUIDO / SHAREHOLDERS EQUITY Capital social / Capital stock Reservas/Lucros acumulados / Capital reserves/retained earnings Total do patrimônio líquido / Total shareholders equity TOTAL DO PASSIVO / TOTAL LIABILITIES AND SHAREHOLDERS EQUITY /06/01 06/30/01 31/03/01 03/31/01 30/06/00 06/30/00

14 GERDAU S.A. Demonstração do resultado não-consolidado / Unconsolidated income statement 2 o Trim nd Quarter o Trim st Quarter o Trim nd Quarter 2000 Acum. 6 meses 2001 Acum. 6 months 2001 Acum. 6 meses 2000 Acum. 6 months 2000 Receita bruta de vendas Gross sales revenue Impostos sobre vendas Taxes on sales ( ) ( ) ( ) ( ) ( ) Fretes e descontos Freight and discount (30.933) (29.690) (26.584) (60.623) (50.364) Receita líquida de vendas Net sales revenue Custo das vendas Cost of sales ( ) ( ) ( ) ( ) ( ) Lucro bruto Gross profit Despesas com vendas Selling expenses (46.616) (42.313) (37.114) (88.929) (79.125) Despesas financeiras Financial expenses (97.165) ( ) (75.292) ( ) ( ) Receitas financeiras Financial revenue Despesas gerais e administrativas General and administrative expenses (67.398) (61.103) (58.847) ( ) ( ) Equivalência patrimonial Equity pick-up Outras despesas/receitas operacionais Other operating expenses/revenue Lucro operacional Operating profit Despesas/receitas não-operacionais Non-operating expenses/revenue 913 (276) (1.275) 637 (5.255) Participações estatutárias Statutory participation (3.661) - (2.990) (3.661) (2.990) Lucro antes de impostos Profit before income tax and social contribution Imposto de renda e contribuição social Income tax and social contribution (12.653) (2.049) (12.030) (14.702) (29.634) Lucro líquido do período Net profit for the period Lucro por lote de mil ações Earnings per lot of one thousand shares - R$ 1,16 0,82 0,88 1,96 1,83 Valor patrimonial por lote de mil ações Equity value per lot of one thousand shares - R$ 22,50 21,68 19,77 22,50 19,77 Número de ações emitidas (milhões) Shares outstanding (million)

15 GERDAU Dear Analyst: I would like to invite you for our second quarter 2001 CONFERENCE CALL both in Portuguese and in English on July 20 th, at 10:00 AM (Brasilia time) for Portuguese speakers and at 11:00 AM (New York time) for English speakers. Should you be interested in participating, please call in 15 minutes ahead of the scheduled time to one of the following phone numbers: Portuguese In Brazil Other countries English In Brazil 00 1 (612) In the U.S. 1 (800) Other countries 00 1 (612) We would like to inform that Gerdau will be opening its conference call to all listeners via the Internet. Access to the conference call will be available through our site at The idea is to allow investors to listen in but not to intervene in the Q&A session. In addition, we will be posting the English and the Portuguese versions of the text on our site on the same day. Should you need additional information, please do not hesitate to contact or write to us at: inform@gerdau.com.br Rodrigo Krause + 55 (51) Tarcísio Beuren + 55 (51) Julia Silveira + 55 (51) Paula Picinini + 55 (51) Sincerely. Rodrigo Krause IR Manager