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.  

CSN REACHES RECORD NET REVENUES OF R$16.9 BILLION IN 2012

STEEL SALES VOLUME TOTALED 5.8 MILLION TONNES IN 2012, 19% HIGHER THAN 2011

São Paulo, Brazil, March 28, 2013

Companhia Siderúrgica Nacional (CSN) (BM&FBOVESPA: CSNA3) (NYSE: SID) announces its consolidated results for the fourth quarter (4Q12) and full year of 2012, which are presented in Brazilian Reais and in accordance with both the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB), and  the Brazilian accounting practices, which are fully convergent with international accounting norms, issued by the Accounting Pronouncements Committee (CPC) and approved by the Brazilian Securities and Exchange Commission (CVM), pursuant to CVM Instruction 485 of September 1, 2010. All comments presented herein refer to the Company’s consolidated results and comparisons refer to the third quarter of 2012 (3Q12) and full year of 2011, unless otherwise stated. The Real/U.S. Dollar exchange rate on December 28, 2012 was R$2.044.
 

·         CSN’s consolidated net revenue reached the record amount of R$16.9 billion in 2012, fueled by the record net revenue of R$4.6 billion in 4Q12;

·         Steel net revenue reached the record amount of R$10.8 billion in 2012, due to the record steel sales volume of 5.8 million tonnes, in which, domestic sales stood out;

·         In 2012, working capital declined by R$806 million, chiefly due to improved payment and inventory management, which reduced the cash conversion cycle by 34 days;

·         CSN’s investments in fixed assets totaled R$3.1 billion in 2012;

·         CSN ended the year with R$14.4 billion in cash and cash equivalents.

The recovery of global economic activity is moving ahead at a moderate pace, still reflecting the high level of uncertainty surrounding the international scenario. 

While the Eurozone remains in retraction, with high unemployment and political challenges, the United States still faces concerns over its fiscal policy.

The monetary policy trend in emerging countries is, in general, expansionist, with prospects of a recovery in the pace of activity, sustained by domestic demand.  

Following six months of shrinkage, December’s global Purchasing Managers Index (PMI) moved up, with the US and Chinese indicators reaching their highest level since May, 2012. The Eurozone PMI remained low with a decline in industrial output and weak domestic demand.

The IMF estimates global growth of 3.5% in 2013, a slight improvement over the 3.2% forecasted for 2012.

USA

U.S. GDP grew by 2.2% in 2012, an improvement over the 1.8% reported in 2011. 

According to the latest FED figures, industrial production edged up by 0.3% in December and 1.0% in 4Q12, reflecting reconstruction works post-hurricane Sandy. Manufacturing PMI reached 50.7 points in December, versus 49.5 in November.

On the monetary policy front, the FED opted to peg interest rates to the economic scenario, keeping them low while unemployment is above 6.5% and estimated inflation for the next two years does not exceed 2.5%.

The FED estimates GDP growth of between 2.3% and 2.8% in 2013. However, the US$85 billion cut in the U.S. budget may affect several economic sectors, resulting in a reduction of up to 1% in the GDP estimates.

In January, Congress approved a tax increase from 35% to 39.6% for households with an annual income of over US$450,000, in order to reduce the risk associated with the fiscal cliff.

Europe

The Eurozone manufacturing sector ended 2012 in recession, reflecting weak international and domestic demand. Manufacturing PMI stood at 46.1 points in December, the 17^th consecutive monthly decline. 

Unemployment remained flat in December over November at 11.7%, equivalent to 18.7 million people out of work in the Eurozone. Greece and Spain had the highest rates, with 26.8% and 26.1% respectively, while Germany recorded unemployment of 5.3%.

According to Eurostat, Eurozone GDP decreased by 0.5% in 2012 over 2011 and by 0.6% in 4Q12 over the previous quarter, marking the bloc’s worst performance since the beginning of 2009. The downturn in 4Q12 was fueled by the four largest economies: Germany (0.6%), France (0.3%), Italy (0.9%) and Spain (0.7%).

The European Central Bank has recently forecast stagnation in 2013 and growth of 1.1% in 2014.  

In the UK, fourth-quarter GDP fell by 0.3% over 3Q12, the latter reflecting the influence of the Olympic Games in August. Annual GDP remained unchanged in 2012, with expectations of a 1% growth in 2013.

The Bank of England expects that the annualized inflation of 2.7% reported in January, reach the level of 3% by mid-2013, remaining above the 2% target for two years.

Asia

The Chinese economy has been recording steady growth, thanks to increased investments in infrastructure, the cut in interest rates and the reduction in reserve requirements since the end of 2011. Annualized GDP moved up by 7.9% in 4Q12, above the 7.4% increase posted in 3Q12, both year-on-year, interrupting the downward cycle and resulting in a growth of 7.8% in 2012. 

Chinese manufacturing PMI reached 51.5 points in December, the highest figure since May 2011, while industrial output and retail sales climbed by 10% and 14.3%, respectively, in 2012. Annual inflation fell to 2.6%, less than half the inflation of 5.4% recorded in 2011.

For 2013, the Chinese Central Bank maintained its GDP growth estimate at 7.5%. During the Central Economic Work Conference held in December, Chinese authorities singled out urbanization growth as a key factor in fueling domestic demand, deemed necessary in order to reduce the country’s dependence on exports, given the uncertainties in the global economy. At the same time, the Chinese government is expected to continue with its proactive fiscal policies and prudential monetary measures.

Japanese GDP shrank by 0.1% in 4Q12 over 3Q12, while 2012 recorded an upturn of 1.9% in relation to 2011.

Impacted by the Japanese Central Bank’s aggressive monetary policy, the yen has depreciated by around 20% against the dollar since November 2012.

Brazil

GDP growth totaled 0.9% in 2012, led by the service and construction sectors, which moved up by 1.7% and 1.4%, respectively. Fourth-quarter growth was 0.6%, once again sustained by the service sector, which climbed by 1.1%. Once again, domestic demand was the most important growth driver, fueled by the moderate credit expansion, job creation and increased individual earnings. However, several uncertainties are still hampering investments, resulting in a reduction in Gross Fixed Capital Formation. For 2013, the Central Bank’s FOCUS report forecasts GDP growth of 3.00%.

December’s industrial production remained flat over November, resulting in a decrease of 2.7% for the year, the first negative result since 2009.

Inflation, as measured by the IPCA consumer price index, reached 0.79% in December, the highest monthly figure since March 2011, totaling 5.84% for the year as a whole. 

In its last meeting held in March, the Monetary Policy Committee (COPOM) opted to maintain the benchmark Selic interest rate at 7.25%.

The real depreciated by 8.9% against the dollar in 2012, closing the year at R$2.04/US$, while foreign reserves totaled US$379 billion.

Macroeconomic Projections

In 2012, CSN consolidated net revenue reached the record of R$16,896 million, 2% up on 2011, chiefly due to higher sales of steel products, with record domestic sales of 4.5 million tonnes and the consolidation of SWT’s results as of February 2012.

In 4Q12, consolidated net revenue totaled R$4,597 million, 8% up on 3Q12 and another record, basically reflecting the increase in net revenue from the mining segment.

In 2012, consolidated COGS totaled R$12,072 million, 23% up on 2011, chiefly due to higher steel sales and increased production costs in the steel and mining segments.

Fourth-quarter COGS totaled R$3,235 million, 4% more than in 3Q12, largely due to higher iron ore sales in consolidated terms and the upturn in mining production costs.

Annual SG&A expenses totaled R$1,508 million, 28% up on 2011, chiefly reflecting the increase in iron ore freight expenses and the consolidation of SWT’s results as of February 2012.

In 4Q12, SG&A expenses reached R$475 million, 21% higher than in 3Q12, essentially due to the increase in iron ore freight expenses.

In 2012, the “Other Operating Expenses” line was negative by R$2,673 million, versus a positive R$218 million result in 2011, primarily due to an expense of R$2,023 million from the reclassification of accumulated losses from the Company’s investments in Usiminas’ common and preferred shares, and a gain of R$698 million from the sale of its interest in Riversdale Mining Limited in 2011.

In 4Q12, the “Other Operating Expenses” line accounted for R$164 million, an increase of R$49 million in relation to the previous quarter, fueled by the increase in incidental expenses, a non-recurring item.  

The Company uses adjusted EBITDA to measure the performance of its various segments and their operating cash flow generation capacity. It comprises net income before the net financial result, income and social contribution taxes, depreciation and amortization, equity income and other operating revenue (expenses). However, although it is used to measure segment results, adjusted EBITDA is not a measure recognized by Brazilian accounting practices or International Financial Reporting Standards (IFRS), has no standard definition and therefore should not be compared to similar indicators adopted by other companies. Adjusted EBITDA totaled R$4,532 million in 2012, 30% down on 2011, chiefly due to the reduction in sales volume and lower iron ore prices in the international market. The consolidated adjusted EBITDA margin in 2012 stood at 27%. In 4Q12, adjusted EBITDA amounted to R$1,222 million, 14% up on 3Q12, fueled by the results from the mining segment, accompanied by a consolidated adjusted EBITDA margin of 27%, up by 2 p.p. on 3Q12.

In 2012, the net financial result was negative by R$1,992 million, chiefly due to the following factors:  

§ Interest on loans and financing totaling R$2,249 million;  

§ Expenses of R$159 million with the monetary restatement of tax installments;  

These negative effects were partially offset by financial revenues of R$416 million.

In 4Q12, the net financial result was negative by R$550 million, mainly due to the following factors:  

§ Interest on loans and financing totaling R$522 million;  

§ Expenses of R$35 million with the monetary restatement of tax installments;  

§ Monetary and foreign exchange variations of R$78 million, including the result of derivative operations;

§ Other financial expenses totaling R$50 million.

These negative effects were partially offset by financial revenues of R$135 million.

On December 31, 2012, consolidated net debt stood at R$15.7 billion, R$0.1 billion more than the R$15.6 billion recorded on September 30, 2012, essentially due to the following factors:

§  Investments of R$0.8 billion in fixed assets;

§  A R$0.6 billion effect from disbursements related to debt charges;

§  Other effects which increased net debt by R$0.2 billion.

These impacts were offset by adjusted EBITDA of R$1.2 billion and a reduction of R$0.3 billion in working capital.

The net debt/EBITDA ratio closed the fourth quarter at 3.47x, based on LTM adjusted EBITDA.

CSN posted a net loss of R$481 million in 2012, basically due to the reclassification of accumulated losses from its investments in Usiminas’ common and preferred shares, previously booked under other comprehensive income in shareholders’ equity, which had an impact of R$1,335 million on the income statement. Excluding the effect from this accounting reclassification, which had no cash impact, CSN would have recorded net income of R$854 million in 2012.

In 4Q12, CSN recorded consolidated net income of R$316 million.

CSN invested R$3,144 million in 2012, R$1,627 million of which in the parent company, allocated as follows:

ü  Expansion of the Casa de Pedra mine and Itaguaí Port: R$381 million;

ü  Construction of the long steel plant: R$454 million;

ü  Expansion of the clinker plant: R$73 million.

The remaining balance of R$1,517 million went to subsidiaries or joint subsidiaries, mostly in the following projects:

ü  Transnordestina Logística: R$984 million;

ü  MRS Logística: R$328 million.

CSN invested R$788 million in 4Q12, R$441 million of which in the parent company, as follows:  

ü  Expansion of the Casa de Pedra mine and Itaguaí Port: R$106 million;

ü  Construction of the long steel plant: R$116 million;

ü  Expansion of the clinker plant: R$12 million.

The remaining R$346 million went to subsidiaries or joint subsidiaries, mostly in the following projects:

ü  Transnordestina Logística: R$181 million;

ü  MRS Logística: R$112 million.

Working capital closed December 2012 at R$1,828 million, R$806 million down on the end-of-2011 balance, chiefly reflecting the Company’s improved management of payments and inventories. The average inventory turnover period fell by 27 days, while the average supplier payment period and the average receivables period increased by nine days and two days, respectively.

Compared to the close of September 2012, working capital declined by R$342 million, basically due to the increase in the suppliers line, thanks to the Company’s improved payment management. In this period, the average supplier payment period expanded by nine days, the average inventory turnover period narrowed by two days, and the average receivables period increased by one day.

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:

The information on CSN’s five business segments is derived from the accounting data, together with allocations and the apportionment of costs among the segments.

The Company’s Management uses Adjusted EBITDA to measure the segments' performance and the operating cash flow generation capacity.

The charts below show the various segments’ contribution to CSN’s overall net revenue and adjusted EBITDA:

Net revenue by segment in 2012 (R$ million)  

The Company’s consolidated results by business segment are presented below:

Scenario

According to the World Steel Association (WSA) global crude steel production totaled 1.5 billion tonnes in 2012, 1% higher than in 2011, with China, responsible for 709 million tonnes, recording growth of 4%. Existing global capacity use fell from 76.1% in November to 73.2% in December.

Global apparent steel consumption is expected to increase by 2.1% in 2012 (2.5% for China). WSA expects global apparent steel consumption growth of 3.2% in 2013, totaling 1.46 billion tonnes, with China predicted to account for 659 million tonnes.

According to the Brazilian Steel Institute (IABr), annual domestic production totaled 34.7 million tonnes of crude steel in 2012, 1.5% less than in the previous year, while rolled flat steel production reached 15.1 million tonnes, up by 8%. 

Domestic flat steel sales remained stable over 2011 at 11.3 million tonnes, while exports fell by 10% to 1.9 million tonnes.

Apparent flat steel consumption in Brazil came to 13.4 million tonnes, 1% down on 2011, while imports totaled 2.0 million tonnes, down by 11%.

The IABr expects domestic sales growth of 7.7% in 2013, fueled by government measures such as the reduction in electricity tariffs, the increase in import taxes for certain steel products and the end of the fiscal war between the States. It also expects apparent flat and long steel consumption of 26.4 million tonnes, 4.3% up on 2012. 

Automotive

According to ANFAVEA (the National Auto Manufacturers’ Association), vehicle production totaled 0.9 million units in 4Q12, 3% down on 3Q12, totaling 3.3 million units in 2012, 2% less than in 2011.

Vehicle sales totaled 1.0 million units in the fourth quarter, 6% less than in 3Q12. In 2012 as a whole, however, sales reached 3.8 million units, 5% more than in 2011, thanks to the government’s measures to encourage consumption, such as the reduction in IPI (federal VAT). Exports, on the other hand, fell by 20% in both periods, to 120 thousand and 442 thousand units, respectively.

FENABRAVE (the National Vehicle Distributors’ Association) expects car and light commercial vehicle sales to increase by 3.0% in 2013, while ANFAVEA estimates growth of between 3.5% and 4.5%, including trucks and buses.

Construction  

Sinduscon (the Builders’ Association in the São Paulo State) estimates that the construction segment will end 2012 with growth of 4%, while the FGV (Fundação Getúlio Vargas) expects the building material industry and retail sales to expand by 1.9% and 8.2% respectively.

According to ABRAMAT (the Brazilian Construction Material Manufacturers’ Association), domestic sales of building materials increased by 1.4% in 2012. 

In 2013, the industry is expected to benefit from lower taxes and higher investments in infrastructure. ABRAMAT estimates sales growth of 4.5% in 2013 versus 2012, fueled by a greater number of property launches and the construction of homes within the government’s Minha Casa, Minha Vidahousing program. In addition, highway, railway, port and airport concession programs and works related to the World Cup are expected to gain momentum.  

Home Appliances

According to Eletros (the Home Appliance and Consumer Electronics Manufacturers’ Association), the home appliance segment closed 2012 with 15% growth in the sales of washing machines, refrigerators and stoves. 

With the extension of IPI tax exemption on home appliances until the end of January, and its gradual increase from February through June 2013, Eletros has reviewed its estimates and now expects home appliances sales growth of 20% in 2012 and 10% in 2013.
 

Distribution  

According to INDA (the Brazilian Steel Distributors’ Association), domestic flat steel sales by distributors totaled 1.1 million tonnes in 4Q12, 3% more than in 3Q12, and 4.4 million tonnes in 2012, 1.5% up on 2011. 
 

Purchases by the associated network came to 1.1 million tonnes in 4Q12, 4% more than in 3Q12, and 4.3 million tonnes in 2012, 5.2% higher than in 2011. Inventories closed the year at 944 thousand tonnes, 1.1% higher than in November and 5.7% up on 2011, representing turnover of 3 months of sales.

INDA expects flat steel sales by distributors to grow by between 5% and 6% in 2013.

Consolidated Sales Volume  

CSN sold a record of 5.8 million tonnes of steel products in 2012, 19% up on the year before, 77% of which on the domestic market, 20% by overseas subsidiaries and 3% through direct exports.

In 4Q12, CSN’s steel sales totaled 1.5 million tonnes, 5% less than in 3Q12, when the Company posted record sales. Of total sales, 77% were commercialized on the domestic market, 20% sold by overseas subsidiaries and 3% exported. Second-half sales volume reached 3.1 million tonnes, 30% up year-on-year and a new period record.

Domestic Sales Volume

CSN’s domestic steel sales totaled 4.5 million tonnes in 2012, 7% more than in 2011 and a new annual record.

Fourth-quarter sales reached 1.2 million tonnes, 7% less than in 3Q12. In 2H12, the Company sold 2.4 million tonnes of steel products, 17% up year-on-year and a new six-month record.

Foreign Sales Volume         

Foreign steel sales totaled 1.3 million tonnes in 2012, 96% more than in 2011 due to the consolidation of SWT’s results as of February 2012. Of this total, 1.2 million tonnes were sold through subsidiaries abroad, while direct exports came to 145 thousand tonnes.

Foreign sales amounted to 343 thousand tonnes in 4Q12, 305 thousand tonnes of which through overseas subsidiaries, with SWT alone accounting for 188 thousand tonnes. Direct exports totaled 38 thousand tonnes.

Prices

Net revenue per tonne averaged R$1,849 in 4Q12, 2% more than the R$1,815 recorded in 3Q12.

Consolidated Net Revenue

Net revenue from steel operations reached the record figure of R$10,802 million in 2012, 14% up on 2011, basically due to the upturn in sales volume in the domestic and foreign markets.

Net revenue from steel operations totaled R$2,835 million in 4Q12, 3% down on 3Q12, essentially due to the reduction in sales volume. However, in 2H12 net revenue reached R$5,752 million, 23% up on 2H11 and another period record.

Consolidated Cost of Goods Sold (COGS)

Steel segment COGS reached R$8,868 million in 2012, 26% up on the 2011 figure, chiefly due to the increase in sales volume and the higher cost of raw materials.

COGS from steel operations totaled R$2,305 million in 4Q12, 1% down on 3Q12.      

Adjusted EBITDA

Adjusted steel segment EBITDA totaled R$2,068 million in 2012, 20% down on 2011, basically due to the upturn in raw material costs. The adjusted EBITDA margin reached 19%.

In 4Q12, adjusted steel segment EBITDA totaled R$564 million, with a margin of 20%, due to variations in revenue and costs.

Production

The Presidente Vargas Steelworks (UPV) produced 4.8 million tonnes of crude steel and 4.7 million tonnes of rolled flat steel in 2012, virtually identical to the year before.

In 4Q12, crude and rolled steel output totaled 1.1 and 1.3 million tonnes, respectively.

Production Costs (Parent Company)

In 2012, the Presidente Vargas Steelworks’ total production costs totaled R$6,527 million, 9% more than in 2011, due to:

• Raw Materials: increase of R$112 million, primarily related to higher consumption of coke and slabs acquired from third-parties;

• Labor: growth of R$28 million, thanks to the pay rise following the collective bargaining agreement;

·     Other production costs: upturn of R$292 million due to scheduled maintenance;

• Depreciation: increase of R$125 million due to new incorporation of assets.

In the fourth quarter, Presidente Vargas Steelworks’ total production costs came to R$1,718 million, 4% more than in 3Q12, due to the R$69 million increase in total raw material costs, essentially due to slabs purchased from third parties, amounting to R$144 million, as a result of scheduled maintenances.  Such increase was partially offset by the R$75 million reduction in the cost of other raw materials, mostly coal and coke.

Scenario

In 2012 the seaborne iron ore market was marked by price volatility, reflecting the global economic uncertainties. After peaking at US$151.25/dmt in April, the Platts IO Fines 62% CFR China price index fell to US$88.50/dmt in September, closing the year at US$144.50/dmt.

Fueled by this scenario, the seaborne iron ore market grew by 7% in 2012, reaching 1,074 million tonnes, sustained by China, which accounted for 66% of total sales volume. Annual Chinese iron ore seaborne imports increased by 10% over 2011.

Thanks to the urbanization projects and the investments in infrastructure announced by the Chinese government in September, the country’s iron ore consumption should continue to expand.

In 2012, Brazil maintained its strong position in the seaborne iron ore market, with sales of 322 million tonnes, despite the 1% reduction in exports due to the strong rainfall at the beginning of the year.

In the fourth quarter, the iron ore market was marked by price hikes, reflecting the improved performance of the Chinese economy, as well as the decline in iron ore inventories in the Chinese ports, weaker Indian exports and the approach of the rainy season in Brazil and Australia. The iron ore quality premium varied between US$2.00 and US$2.30/dmt for 1% of Fe content, while freight costs on the Tubarão/Qingdao route averaged US$21/wmt.

Iron ore sales

In 2012, sales of finished iron ore products totaled 25.8 million tonnes¹, 12% down on 2011, 14.0 million of which sold by Namisa. Total exports reached 25.1 million tonnes.

In 4Q12, sales of finished iron ore products amounted to 6.4 million tonnes, entirely allocated to exports, 2% down on 3Q12. Of this total, 1.9 million tonnes were sold by Namisa¹.

Iron ore volume for own consumption was 6.1 million tonnes in 2012 and 1.5 million tonnes in 4Q12. 

Considering CSN’s 60% interest in Namisa, consolidated iron ore sales came to 20.2 million tonnes in 2012, 15% down on 2011, and 5.7 million tonnes in the fourth quarter, 19% up on 3Q12.  

¹ Sales volumes include 100% of the stake in NAMISA.

Net Revenue

Net revenue from mining operations totaled R$4,485 million in 2012, 23% less than in 2011, due to lower iron ore prices and the reduction in sales volume.

In 4Q12, net revenue from mining amounted to R$1,301 million, 39% up on 3Q12, due to the increase in consolidated iron ore sales and higher prices in the period.

Cost of Goods Sold (COGS)

Mining COGS amounted to R$2,450 million in 2012, 12% more than in 2011, chiefly due to the upturn in production costs.

Fourth-quarter mining COGS totaled R$769 million, 35% up on the previous three months, primarily due to the increase in iron ore sales in consolidated terms and higher production costs.

Adjusted EBITDA

In 2012, adjusted EBITDA from mining operations totaled R$2,166 million, 43% less than in 2011, basically due to the reduction in net revenue and the increase in COGS. The adjusted EBITDA margin from mining operations was 48%.

In 4Q12, adjusted EBITDA from mining operations totaled R$572 million, 44% up on 3Q12, essentially due to the increase in net revenue, partially offset by higher COGS. The adjusted EBITDA margin stood at 44%.

Scenario

Railway Logistics

According to ABIFER (Brazilian Railway Industry Association), Brazilian rail sector revenue should reach R$4.3 billion in 2012, virtually identical to the 2011 figure.

Aiming to reduce infrastructure bottlenecks, the Brazilian government announced the construction of 15,000 km of rail track in the coming years, 5,000 km of which under the Growth Acceleration Program (PAC) and 10,000 km as concessions. 

Port Logistics

According to ANTAQ (National Waterway Transport Agency), Brazil’s port installations handled approximately 671 million tonnes of cargo in 9M12, 3.8% up year-on-year, with bulk solids totaling 404 million tonnes, up by 2.8%. Container handling amounted to 5.9 million TEUs¹, 4.4% more than in the same period of 2011.

The government announced investments of R$54 billion in the port sector through 2017, including dredging works and projects to renovate port infrastructure and expand cargo handling capacity, in addition to R$2.6 billion allocated to railway access routes.

¹ TEU (Twenty‐Foot Equivalent Unit) – transportation unit equivalent to a standard 20-feet intermodal container

Analysis of Results

Railway Logistics

In 2012, net revenue from railway logistics totaled R$1,067 million, COGS stood at R$730 million and adjusted EBITDA amounted to R$381 million, accompanied by an adjusted EBITDA margin of 36%.

In 4Q12, net revenue from railway logistics totaled R$271 million, COGS amounted to R$188 million and adjusted EBITDA totaled R$94 million, with an adjusted EBITDA margin of 35%.

Port Logistics

In 2012, net revenue from port logistics amounted to R$151 million, COGS totaled R$82 million and adjusted EBITDA stood at R$55 million, with an adjusted EBITDA margin of 36%.

In 4Q12, net revenue from port logistics amounted to R$42 million, COGS totaled R$21 million and adjusted EBITDA stood at R$18 million, with an adjusted EBITDA margin of 43%.

Scenario

Preliminary figures from SNIC (the National Cement Industry Association) indicate domestic cement sales of 68.3 million tonnes in 2012, 6.9% up on the year before. According to SECEX (the Foreign Trade Secretariat), cement imports totaled 977 thousand tonnes in 2012, 10.4% less than in 2011.

Analysis of Results

Cement sales totaled 2.0 million tonnes in 2012, net revenue amounted to R$388 million, COGS reached R$286 million, and adjusted EBITDA totaled R$60 million, with an adjusted EBITDA margin of 15%.

In 4Q12, cement sales totaled 483 thousand tonnes, net revenue amounted to R$98 million, COGS amounted to R$67 million, and adjusted EBITDA totaled R$23 million, with an adjusted EBITDA margin of 23%.

Scenario

According to the Energy Research Company (EPE), in 2012 Brazilian electricity consumption increased by 3.5% over 2011, led by the commercial and residential segments which recorded respective growth of 7.9% and 5.0%. Industrial consumption remained flat in the year.

Analysis of Results

In 2012, net revenue from the energy segment amounted to R$229 million, COGS totaled R$153 million and adjusted EBITDA reached R$71 million, with an adjusted EBITDA margin of 31%.

In the fourth quarter, net revenue amounted to R$61 million, COGS stood at R$47 million and adjusted EBITDA was R$12 million, with an adjusted EBITDA margin of 20%.

In 4Q12, CSN’s shares appreciated by 4%, outpacing the IBOVESPA’s 3% upturn in the same period. Daily traded volume in CSN’s shares averaged R$55 million in 4Q12 and R$63 million in 2012.  

On the NYSE, CSN’s ADRs appreciated by 3% in 4Q12, versus the Dow Jones’ 2% depreciation. Daily traded volume in CSN’s ADRs averaged US$36 million in 4Q12 and US$42 million in 2012.

Shareholder’s Remuneration

Management’s proposal for the remuneration of CSN’s shareholders, to be submitted to the next Annual Shareholders’ Meeting, envisages the payment of R$860 million in dividends and interest on equity.  

On December 27, 2012, the Board of Directors approved the payment of dividends to shareholders arising from the profit reserves account (working capital), at the amount of R$300 million. This amount, paid on January 7, 2013, constitutes anticipation of the minimum mandatory dividends for fiscal year 2012, to be ratified in the Annual Shareholders’ Meeting.