CSN has a 59% high profit in the 2nd quarter

The CSN had net income of R $1.894 billion, an expansion of 59% on the performance obtained one year earlier, backed by higher sales of iron ore and reduction of financial expenses, the steel and mining group reported on Tuesday. The company found a profit before interest, taxes, depreciation and amortization (EBITDA) adjusted to R $2.38 billion, expansion of 68% on the annual basis. Without adjustments, the company's EBITDA was R $1.465 billion, a fall of 21% over the second quarter of 2018. Analysts, on average, expected EBITDA of R $1.94 billion, according to data from Refinitiv. It was not immediately clear whether the numbers are comparable. The result came with a 12% drop in steel sales over the second quarter of last year and a 25% increase in iron ore sales, 10,140,000 tons, CSN reported on the balance sheet. The company also announced that it estimates to achieve adjusted EBITDA of around R $8.5 billion in 2019, an iron ore production of 33 million tons this year and also in 2020. Already the expectation for this year for sales of the commodity is about 40 million tons. The CSN balance sheet was further supported by a sensible reduction in the negative financial result that declined from R $989 million in the second quarter of last year to R $358 million in the three months ended in June, amid the company's campaign to reduce Debt. CSN ended June with a net debt ratio on EBITDA of 3.65 times before 5.34 times at the end of the first semester of 2018. If the second iron ore prepayment agreement is considered, with Glencore, the leverage drops to 3.52 times, the company said on the balance sheet.