EX-1 3 e884507.txt EXHIBIT 1 Exhibit 1 FIRST QUARTER 2003 GERDAU S.A. RESULTS CONSOLIDATED -------------------------------------------------------------------------------- HIGHLIGHTS o Net Income in the first quarter of 2003, reached R$ 287,3 million, an increase of 129,2% over the R$ 125,3 million obtained in the same period in 2002. o Net revenue in the period reached R$ 3,3 billion compared to R$ 1,7 billion in the first three months of 2002, an increase of 100,5%. o The output of crude steel was 3.0 million metric tons, 32.7% greater than the volume produced in the first quarter of 2002. The output of rolled products reached the mark of 2.1 million metric tons, presenting an increase of 44.2%.
HIGHLIGHTS 1Q2003 1Q2002 VARIATION ------ ------ --------- Production (1,000 tonnes) 2,955 2,227 32.7% Crude steel 2,135 1,481 44.2% Rolled products Sales (1,000 tonnes) 2,888 2,121 36.2% Net sales (R$ million) 3,327 1,659 100.5% EBITDA (R$ million) 706 412 71.2% EBTDA (cash flow - R$ million) 596 287 107.6% Net income (R$ million) 287 125 129.2% Shareholders' equity (R$ million) 4,622 3,972 16.4% Total assets (R$ million) 14,892 9,872 50.8% Gross margin 25.0% 30.0% EBITDA margin 21.2% 24.8% Net margin 8.6% 7.6% Net income / Shareholders' equity (ROE)(1) 21,2% 18.5% Dividends / Share prices (cash yield) 7.9%2 7,1%3 -------------------- 1 - Net income in the last twelve months over net worth at the end of the period. 2 - Annualized first quarter dividends over price of preferred shares on April 26th, 2003. 3 - Dividends paid in 2002 over price of preferred shares in December 31st, 2002.
o Metalurgica Gerdau S.A. and Gerdau S.A. have changed their dividend/interest over capital stock payout policy. As of 2003, payments will be made on a quarterly basis instead of every six months, as was done through 2002. o At the shareholders' meetings to be held on April 30th, shareholders will be asked to appreciate Metalurgica Gerdau S.A. and Gerdau S.A. management's proposals to give a stock dividend of 100% and 30%, respectively. o Shareholders will also deliberate the proposal to group (reverse split) one thousand shares into one single share. As a consequence, trades will be done based on the unit and no longer on the one thousand share lot as is done today.
AVAILABLE AT THE WEBSITE: CONFERENCE CALL: MAY 8TH ------------------------- ----------------------------- This document and the Complementary Information are available In Portuguese, at 8 AM (EST). at the website WWW.GERDAU.COM.BR/RI. In English, at 10 AM (EST). To listen in, please dial: Quarterly information (ITR) of Metalurgica Gerdau S.A. and PORTUGUESE: in Brasil 0800 770.4544 Gerdau S.A will be available on April 30. in the US 1 866 812.0442 other countries +55 11 4613.0501 ADDITIONAL INFORMATION: ENGLISH: in the US 1 866 812.0442 More information on the performance of the quarter in Brazil 0800 770.4544
can be obtained with the Investor Relations Team at other countries +55 11 4613.0502 +55 51 3323.2703 or by e-mail at INFORM@GERDAU.COM.BR. The recording of the conference call will be available also on the Internet. To retrieve it please access the website WWW.GERDAU.COM.BR.
PERFORMANCE IN THE QUARTER OUTPUT AND SALES o In the month of March, Gerdau surpassed the one million metric ton of crude steel mark in a single month. This is a new record in its history. 21 years ago, the Company needed a full year to reach this mark in crude steel. o This performance reinforces the growth path the Company has been following. In 1982, it operated five mills in the country and one mill in Uruguay. Today, it has 22 steel mills throughout Brazil, Canada, Chile, the United States and Uruguay, along with strategic shareholdings in a rolling mill in Argentina and in a flat steel plant in the United States.
PRODUCTION VARIATION VARIATION (1,000 tonnes) 1Q2003 1Q2002 1Q03/1Q02 4Q2002 1Q03/4Q02 -------------- ------ ------ --------- ------ --------- CRUDE STEEL Brazil 1,674.8 1,495.9 12.0% 1,691.0 (1.0%) North America 1,195.4 662.6 80.4% 1,134.3 5.4% South America 84.8 69.0 22.9% 96.9 (12.5%) TOTAL 2,955.0 2,227.5 32.7% 2,922.2 1.1% ROLLED PRODUCTS Brazil 921.4 798.1 15.5% 995.7 (7.5%) North America 1,122.4 611.7 83.5% 1,084.4 3.5% South America 91.5 71.0 28.7% 105.3 (13.1%) TOTAL 2,135.3 1,480.8 44.2% 2,185.4 (2.3%)
o The increase in installed capacity resulting from the new productive units incorporated in North America in October 2002 was the main reason for the crude steel production to reach the mark of 3.0 million metric tons in the first quarter of 2003. It was 32.7% greater than that of the same period in the previous year. The Brazilian units contributed with 56.7% of this volume, North America contributed with 40.4% and South America with the remaining 2.9%. o The output volume of rolled products in the quarter reached 2.1 million metric tons, 44.2% above that of the first quarter of 2002.
SALES VARIATION VARIATION (1,000 tonnes) 1Q2003 1Q2002 1Q03/1Q02 4Q2002 1Q03/4Q02 -------------- ------ ------ --------- ------ --------- BRAZIL Domestic 853.5 875.6 (2.5%) 980.4 (12.9%) Exports 657.2 535.8 22.7% 580.0 13.3% TOTAL 1,510.7 1,411.4 7.0% 1,560.4 (3.2%) ABROAD Noth America 1,269.5 624.8 103.2% 1,067.4 18.9% South America 107.4 84.5 27.1% 105.4 1.9% TOTAL 1,376.9 709.3 94.1% 1,172.8 17.4% TOTAL CONSOLIDATED 2,877.6 2,120.7 36.2% 2,733.2 5.6%
o The increase in exports and the higher tonnage shipped abroad combined with the consolidation of the new units in North America were the main factors for this 36.2% increase in sales in the first quarter of 2003 comparatively to that same period in 2002. Shipments in the period totaled 2.9 million, of which 52.3% from the Brazilian operations, 44.0% from North America and 3.7% from Chile, Argentina and Uruguay. START HERE RESULTS o Net revenues experienced an increase of 100.5% this first quarter when compared to the first quarter of 2002, with a total of R$ 3.3 billion (R$ 1.7 billion in 2002). The factors that contributed most to this performance were: - increase in total sales by 36.2% due to an increase in exports (+22.7%) and to the consolidation of the new units in North America; - higher revenues from foreign operations when converted into reais due to the devaluation of the Brazilian currency (R$ 3.3531 at the end of March, 2003 compared to R$ 2.3236 at the end of March 2002); - good performance of Acominas as a result of an improved product mix and to the increase in international prices; - readjustment of domestic market prices to partially compensate for price increases in costs mainly raw materials.
--------------------------------------------------------------------------------------------------------------------------------- NET SALES 1Q2003 1Q2002 VARIATION 4Q2002 VARIATION (R$ million) 1Q03/1Q02 1Q03/4Q02 --------------------------------------------------------------------------------------------------------------------------------- Brazil 1,717.0 1,090.6 57.4% 1,624.7 5.7% North America 1,490.0 503.6 195.9% 819.2 81.9% South America 119.8 64.7 85.2% 122.4 (2.1%) TOTAL 3,326.8 1,658.9 100.5% 2,566.3 29.6% ---------------------------------------------------------------------------------------------------------------------------------
o With increases in cost of sales of 114,8% in the first quarter compared to a 100,5% increase in net revenues, gross margin suffered a reduction in the period. In the quarter this margin stayed at 25.0% against the 30.0% in the first quarter of 2002. The major factors responsible for this reduction were the increases in price of steel scrap and pig iron, the main inputs for Gerdau mills. Gross profit reached R$ 831.6 million in 2003 against R$ 497.5 million in 2002. o The effort to reduce SG&A has contributed to a reduction of these amounts in relation to net revenue. This quarter, these expenses represented 8.4% of net revenues compared to 11.7% in the first quarter of 2002 and totaled R$ 280.4 million. o In spite that operating expenses were reduced in relation to net revenues, the increase in the cost of sales caused a decrease in the EBITDA margin. This margin stayed at 21.2% in the first quarter of 2003 compared to 24.8% for the same period in 2002. EBITDA for the quarter reached R$ 705.7 million, 71.2% greater than that of January through March of 2002.
--------------------------------------------------------------------------------------------------------------------------------- EBITDA 1Q2003 1Q2002 VARIATION 4Q2002 VARIATION (R$ million) 1Q03/1Q02 1Q03/4Q02 --------------------------------------------------------------------------------------------------------------------------------- Brazil 620.0 333.1 86.1% 540.0 14.8% North America 47.3 60.4 (21.7%) 30.7 54.1% South America 38.4 18.8 104.3% 27.7 38.6% TOTAL 705.7 412.3 71.2% 598.4 17.9% ---------------------------------------------------------------------------------------------------------------------------------
o Net financial expenses (R$ 109.5 million), excluding monetary variation of R$ 11.4 million and adding FX variation of R$ 19.0 million generated in the quarter totaled R$ 117.1 million, 37.7% greater than those of the same period in the previous year. This growth is due to the increase in interest rates and to the greater debt level as a result of investments made in the period. These investments were, among others, the increase in the stake held in Acominas and the merger in North America. o The appreciation of the real vis-a-vis the US dollar in the first quarter generated a negative equity pick up of R$ 88.9 million on investments abroad. o Net income reached R$ 287.3 million in the first quarter of 2003, presenting a net margin of 8.6%. In the same period in 2002, net income had reached the mark of R$ 125,3 million, with a net margin of 7.6%. --------------------------------------------------------------------------------------------------------------------------------- NET INCOME 1Q2003 1Q2002 VARIATION 4Q2002 VARIATION (R$ million) 1Q03/1Q02 1Q03/4Q02 --------------------------------------------------------------------------------------------------------------------------------- Brazil 287.4 113.2 153.9% 166.7 72.4% North America (22.4) 13.4 (267.2%) 3.9 (674.4%) South America 22.3 (1.3) 1,815.4% 24.5 (9.0%) TOTAL 287.3 125.3 129.2% 195.1 47.3% ---------------------------------------------------------------------------------------------------------------------------------
INVESTMENTS o From January through March 2003, the Gerdau companies invested US$ 77.9 million in maintenance and technological update of its industrial units. o At the companies in Brazil, investments totaled US$ 54.2 million, of which US$ 16.8 million in the Gerdau S.A. units, US$ 37.3 million in Acominas and US$ 147 thousand in the other Brazilian companies. o The Gerdau units abroad received investments of US$ 23.6 million, of which US$ 22.1 million in North America and US$ 1.5 million in South America. INDEBTEDNESS o Net debt totaled R$ 5,9 billion in March 31st, 2003, 3.1% greater than in the end of 2002 (R$ 178,0 million). This is explained mostly due to the consolidation this quarter of the 50% stake in Gallatin Steel Co., in the United States. o At the end of the quarter, the balance of Cash & Equivalents totaled R$ 1.3 billion, of which 77.2% (R$ 1.0 billion) are pegged to the US dollar. -------------------------------------------------------------------------- INDEBTEDNESS MARCH 2003 DECEMBER 2002 (R$ million) -------------------------------------------------------------------------- SHORT TERM Domestic currency 475.3 480.7 Foreign currency1 1,852.4 1,639.4 Companies abroad 2,242.0 1,587.9 TOTAL 4,569.7 3,708.0 LONG TERM Domestic currency 1,120.9 1,096.1 Foreign currency1 812.9 897.8 Companies abroad 755.9 1,465.9 TOTAL 2,689.7 3,459.8 TOTAL DEBT 7,259.4 7,167.8 Cash and Equivalents 1,344.3 1,430.7 NET DEBT 5,915.1 5,737.1 ------------------------------------------------------------------------- 1 - 75% of indebtedness in foreign currency was covered with hedges. o The indebtedness payment schedule as of March 31st, is as following: -------------------------------------------- YEAR R$ MILLION -------------------------------------------- 2004 473.8 2005 861.6 2006 324.5 2007 304.3 2008 and after 725.5 TOTAL 2,689.7 -------------------------------------------- o At the end of the quarter, the main Gerdau debt-related ratios were the following:
--------------------------------------------------------------------------------------------------------------------------------- RATIOS MARCH 03 DECEMBER 02 --------------------------------------------------------------------------------------------------------------------------------- Net debt / Total capitalization 56.1% 56.5% EBITDA / Net financial expenses (minus monetary & exchange rate variation) 6.0x 5.7x Total debt / EBITDA1 3.0x 3.4x Net debt / EBITDA1 2.4x 2.7x ---------------------------------------------------------------------------------------------------------------------------------
1 - Last twelve months EBITDA. ABAMEC MEETINGS o Gerdau will be holding two ABAMEC meetings in May. The first quarter's results will be discussed along with the perspectives for fiscal year 2003. On May 12th, the presentation will happen in Sao Paulo and, on the 13th, in Brasilia. LISTED COMPANIES METALURGICA GERDAU S.A. o Beginning in 2003, shareholders of Metalurgica Gerdau S.A. will get their dividends or interest over capital stock paid on a quarterly basis. This change in payout policy - until 2002 it was paid every six months - , was approved by the Board in a meeting held on the 31st of March. o The amount of the interest over capital stock of the first quarter of 2003 and that will be paid on the 15th of May, 2003, total R$ 34.3 million. This is equivalent to R$ 1,65 per lot of one thousand shares and, if annualized, represents a yield of 10.6% over the stock price of R$ 62.00 per lot of one thousand shares as recorded on April 26th, 2003. o At the shareholders' meeting to be held on next April 30th, the shareholders will appreciate the Board's proposal to give a stock dividend of 100%. The Company shareholders will receive a new share for each one held at the date of the approval and the amount of shares outstanding will double and reach to 41.6 billion from 20.8 billion. o Shareholders will deliberate on the proposition to group shares (reverse split) in lots of one thousand into one single share. The immediate consequence is that trades will be made based on the unit and no longer a lot of one thousand shares as it is today. o Metalurgica Gerdau S.A. had profits of R$ 127,6 million in the quarter, 97.6% more than the R$ 64.6 million in the same period of 2002. Profit in 2003 represents R$ 6.14 per lot of one thousand shares, compared to R$ 3.11 in the previous year. o Net worth on March 31st was R$ 1.7 billion, equivalent to R$ 80.9 per lot of one thousand shares. o Trading with Metalurgica Gerdau S.A. (GOAU) at Bovespa throughout the first quarter of 2003, totaled 1.9 billion shares. Number of trades made was 3,249, which moved R$ 98.0 million. This amount was 61,4% superior to that of the same period in 2002. The devaluation of the preferred shares in the quarter was of 1.3%, and the daily average traded reached R$ 1.5 million. o The evolution of price quotes of preferred shares at the Bovespa in the past fifteen months was as follows: BOVESPA [OBJECT OMITTED] GERDAU S.A. o The shareholders of Gerdau S.A. will now get their dividends or interest over capital stock paid on a quarterly basis. This change has been approved by the Board on March 31st. o Interest over capital stock realtive to the first quarter and that will be paid on May 15th, 2003, totals R$ 74.2 million. This amount is equivalent to R$ 0.65 per lot of one thousand shares and, if annualized, presents a yield of 7.9% over the price of R$ 33.10 per lot of one thousand shares as recorded on April 26th, 2003. o At the shareholders' meeting to be held on the 30th of April, the proposal to issue a stock dividend of 30% to shares held at the date of the meeting presented by the Board, will be appreciated. With the approval, the quantity of shares outstanding will go from 114.1 billion to 148.4 billion. o Shareholders will also appreciate the proposal to group each lot of one thousand shares into a single share. As a consequence, trades will be based on the unit and no longer on a lot of one thousand shares as is today. o Gross revenues at Gerdau S.A. in the first quarter reached the mark of R$ 1.5 billion, that is, 47.4% more than in the same period of 2002. Net revenues accumulated R$ 1.2 billion, 50.1% greater than in the first quarter of the previous year. o Net income for Gerdau S.A. reached R$ 245,9 million in the quarter, 120.5% more than in the same period in 2002, when it reached R$ 111.5 million. Net profit through March 2003 represents R$ 2,15 per lot of one thousand shares, compared to R$ 0.98 in the last year. o On March 31st, the net worth of the Company was R$ 3.5 billion, equivalent to R$ 30.51 per lot of one thousand shares. o Shares of Gerdau S.A. (GGBR) moved $ 344.8 million at Bovespa in the quarter. This was 20.5% superior to the first three months of 2002. The number of trades was of 16,041 deals and the volume of shares traded was 11.0 billion. The daily average in 2003 was of R$ 5.3 million and preferred shares devaluated 6.1% in the quarter. o The New York Stock Exchange traded 3,5 million Gerdau S.A. (GGB)ADRs. This represented a trading volume of US$ 31.2 million in the first quarter of this year, equivalent to a daily average of US$ 511.4 thousand. o In the last fifteen months, the price quotes of preferred shares at the Sao Paulo Stock Exchange and the New York Stock Exchange using the prices of February 1st as base 100, behaved as follows: BOVESPA NYSE [OBJECT OMITTED] [OBJECT OMITTED] o On the Latibex (Stock Exchange of Madrid), where the preferred shares of Gerdau S.A. (XGGB) are traded since December 2nd, 2002, 63.1 thousand shares have been traded and characterizing a daily presence on that Exchange. MANAGEMENT
METALURGICA GERDAU S.A. - NON CONSOLIDATED BALANCE SHEET CORPORATE LAW - R$ THOUSAND MAR. 03 MAR. 02 DEC.02 MAR. 03 MAR. 02 DEZ.02 TOTAL ASSETS 1.800.715 1.540.490 1.773.071 CURRENT ASSETS 83.541 136.603 156.842 Cash and cash equivalents 9 26 14 Trade accounts receivable 37.824 - 63.847 Taxes recoverable 30.248 9.828 74.845 Temporary cash investments 12.002 121.676 11.453 Others 3.458 5.073 6.683 LONG-TERM RECEIVABLES 19.615 12.121 17.568 Accounts receivable 4.247 4.841 4.438 A/R with related parties 1.133 - 863 Others 14.235 7.280 12.267 PERMANENT ASSETS 1.697.559 1.391.766 1.598.661 Investments 1.695.709 1.389.764 1.596.773 Fixed assets 1.850 2.002 1.888 ============================================================================================================== CORPORATE LAW - R$ THOUSAND MAR. 03 MAR. 02 DEC.02 MAR. 03 MAR. 02 DEZ.02 TOTAL LIABILITIES 1.800.715 1.540.490 1.773.071 CURRENT LIABILITIES 40.958 11.089 108.668 Debentures 9 500 18 Trade accounts payable 108 - 31 Taxes payable 114 2.121 191 Dividends payable 31.076 - 95.845 A/P with related parties - 236 - Other accounts payable 9.651 8.232 12.583 LONG-TERM LIABILITIES 90.435 136.127 88.337 Debentures 937 51.891 912 Other accounts payable 89.498 84.236 87.425 SHAREHOLDERS' EQUITY 1.669.322 1.393.274 1.576.066 Capital stock 640.000 520.280 640.000 Capital reserves 10.659 45.979 10.659 Profit reserves 924.847 761.887 924.847 Retained earning 93.816 65.128 560 ==============================================================================================================
METALURGICA GERDAU S.A. - NON CONSOLIDATED FINANCIAL STATEMENT CORPORATE LAW - R$ THOUSAND 1Q2003 1Q2002 4Q2002 1T2003 1T2002 4T2002 GROSS SALES REVENUE - - - Deductions of gross revenues - - - NET SALES REVENUES - - - Cost of sales - - - GROSS PROFIT - - - OPERATING RESULT 128.858 65.895 121.388 Selling expenses - - - General and administrative expenses (9.355) (4.673) (8.495) Financial result 2.432 1.952 1.246 Fianancial revenues 3.527 5.335 3.633 Financial expenses (1.095) (3.383) (2.387) Other operating revenues 47 16 2 Equity pick-up 135.734 68.600 128.635 OPERATING PROFIT 128.858 65.895 121.388 NON-OPERATING RESULT - (1.089) (18.996) Non-operating expenses - (1.089) (18.996) PROFIT BEFORE TAXES/PARTICIPATION 128.858 64.806 102.392 Deferred income tax (582) (238) (3.715) Statutory participation (713) - (794) NET PROFIT FOR THE PERIOD 127.563 64.568 97.883 -------------------------------------------------------------------------------------------------------------------------------- Profit per lot of 1,000 shares - R$ 6,14 3,11 4,71 Book value per lot of 1,000 shares 80,29 67,01 75,80 Outstanding shares (million) 20.792 20.792 20.792 ================================================================================================================================ CASH FLOW CORPORATE LAW - R$ THOUSAND 1Q2003 1Q2002 4Q2002 1T2003 1T2002 4T2002 NET INCOME 127.563 64.568 97.883 Equity pick up (135.734) (68.600) (128.635) Gain/Loss in disposal of investment - 1.088 18.996 Monetary and exchange variation 1.398 2.500 2.525 Depreciation and amortization 38 38 37 Income tax and social contribution 558 (2.798) 2.262 Interest paid 9 584 524 Contingencies/legal deposits 60 30 17 Changes in inventories - Increase (decrease) in trade account payable 77 (2) 30 Other operating activities accounts (4.840) (3.600) 7.284 NET CASH PROVIDED BY OPERATING ACTIVITIES (10.871) (6.192) 923 Fixed assets acquisitons/ disposals - 2 (8.661) Dividends 92.144 53.302 4.912 INVESTMENTS ACQUISITIONS/ DISPOSALS 92.144 53.304 (3.749) Working capital financing (1.681) 54.023 (1.640) Debentures (19) (1.142) (1.041) Interest paid for financing - (45) - Inter companies loans (263) 1.343 (765) Dividend/ interest & statutory particip, payment (105.338) (51.189) (2.782) CASH PROVIDED BY (APPLIED TO) FINANCING ACTIVITIES (107.301) 2.990 (6.228) NET CHANGE IN CASH (26.028) 50.102 (9.054) CASH BALANCE At the beginning of the period 63.861 71.600 72.915 At the end of the period 37.833 121.702 63.861 CASH COMPOSITION Temporary cash investments 37.824 121.676 63.847 Cash 9 26 14 ===============================================================================================================================
METALURGICA GERDAU S.A. - CONSOLIDATED BALANCE SHEET CORPORATE LAW - R$ THOUSAND MAR. 03 MAR. 02 DEC.02 MAR. 03 MAR. 02 DEZ.02 TOTAL ASSETS 15.000.962 9.888.911 14.561.913 CURRENT ASSETS 5.918.720 3.446.388 5.467.714 Cash and cash equivalents 143.776 7.232 74.519 Trade accounts receivable 1.782.387 990.921 1.424.595 Taxes recoverable 83.793 64.440 73.018 Temporary cash investments 1.203.787 885.689 1.345.717 Inventories 2.390.961 1.359.660 2.220.055 Others 314.016 138.446 329.810 LONG-TERM RECEIVABLES 606.655 332.246 571.035 Accounts receivable 11.306 9.712 11.306 A/R with related parties 10.938 36.644 8.397 Others 584.411 285.890 551.332 PERMANENT ASSETS 8.475.587 6.110.277 8.523.164 Investments 514.875 315.255 917.751 Fixed assets 7.938.021 5.778.400 7.581.144 Deferred 22.691 16.622 24.269 ===================================================================================================================== CORPORATE LAW - R$ THOUSAND MAR. 03 MAR. 02 DEC.02 MAR. 03 MAR. 02 DEZ.02 TOTAL LIABILITIES 15.000.962 9.888.911 14.561.913 CURRENT LIABILITIES 6.470.815 2.869.974 5.475.429 Loans and Financing 4.616.282 1.900.450 3.745.725 Debentures 7.735 5.216 18 Trade accounts payable 1.175.341 595.713 924.330 Taxes payable 241.543 140.373 170.111 Dividends payable 65.675 15.302 187.241 Other accounts payable 364.239 212.920 448.004 LONG-TERM LIABILITIES 3.920.090 3.067.462 4.680.929 Loans and Financing 1.937.179 2.158.419 2.750.492 Debentures 715.713 218.064 646.463 Other accounts payable 1.267.198 690.979 1.283.974 Minority Shareholders 2.940.735 2.558.201 2.829.489 SHAREHOLDERS' EQUITY 1.669.322 1.393.274 1.576.066 Capital stock 640.000 520.280 640.000 Capital reserves 10.659 45.979 10.659 Profit reserves 924.847 761.887 924.847 Retained earning 93.816 65.128 560 =====================================================================================================================
METALURGICA GERDAU S.A. - CONSOLIDATED FINANCIAL STATEMENT CORPORATE LAW - R$ THOUSAND 1Q2003 1Q2002 4Q2002 1T2003 1T2002 4T2002 GROSS SALES REVENUE 3.924.515 2.053.310 3.081.499 Deductions of gross revenues (597.676) (394.417) (515.141) NET SALES REVENUES 3.326.839 1.658.893 2.566.358 Cost of sales (2.495.271) (1.161.377) (1.821.229) GROSS PROFIT 831.568 497.516 745.129 OPERATING RESULT (475.767) (331.449) (454.968) Selling expenses (91.991) (71.331) (98.623) General and administrative expenses (200.332) (129.849) (185.733) Financial result (102.597) (120.084) 63.430 Fianancial revenues 16.745 29.168 46.644 Financial expenses (119.342) (149.252) 16.786 Other operating revenues 587 - (84.515) Other operating expenses - (980) - Equity pick-up (81.434) (9.205) (149.527) OPERATING PROFIT 355.801 166.067 290.161 NON-OPERATING RESULT (997) (13.501) (41.101) Non-operating expenses (997) (13.501) (41.101) PROFIT BEFORE TAXES/PARTICIPATION 354.804 152.566 249.060 Provision for income tax and social contribution (73.769) (35.405) (41.634) Deferred income tax 12.354 8.944 (6.020) Statutory participation (5.251) - (5.872) NET PROFIT FOR THE PERIOD 288.138 126.105 195.534 ------------------------------------------------------------------------------------------------------------------------------- Controlling Shareholders 127.563 64.568 97.883 Minority Shareholders 160.575 61.537 97.651 =============================================================================================================================== CASH FLOW CORPORATE LAW - R$ THOUSAND 1Q2003 1Q2002 4Q2002 1T2003 1T2002 4T2002 NET INCOME 288.138 126.105 195.534 Equity pick up 81.434 9.337 149.527 Provision for credit risk 2.300 - 2.745 Gain/Loss in fixed asset disposal 844 1.554 2.227 Gain/Loss in liquidation of investment 35 5.258 22.328 Monetary and exchange variation (5.004) 21.316 (173.363) Depreciation and amortization 154.581 109.524 126.273 Income tax and social contribution 33.397 8.181 72.001 Interest paid 143.810 52.542 125.640 Contingencies/legal deposits (1.167) 9.486 2.568 Changes in trade account receivable (339.512) (89.710) 178.811 Changes in inventories (138.275) (2.962) (154.001) Changes in trade accounts payable 203.697 9.788 (95.294) Other accounts in operating activities (34.237) (16.623) 20.506 NET CASH PROVIDED BY OPERATING ACTIVITIES 390.041 243.796 475.502 Fixed assets acquisitons/ disposals (278.657) (153.138) (139.248) Deferred charges 743 (603) 687 Investments acquisitions/ disposals (138) (96.449) 97.578 CASH (APPLIED TO) INVESTING ACTIVITIES (278.052) (250.190) (40.983) Fixed assets suppliers 1.963 1.487 13.697 Working capital financing 159.863 28.337 102.175 Debentures 30.972 6.836 (41.109) Proceeds from fixed assets financing 126.666 471.291 9.458 Payments of fixed assets financing (185.660) (443.282) (846.274) Interest paid for financing (67.027) (40.576) (103.346) Inter companies loans 2.887 (7.463) 16.600 Dividend/ interest & statutory particip, payment (209.994) (121.473) (1.697) CASH PROVIDED BY (APPLIED TO) FINANCING ACTIVITIES (140.330) (104.843) (850.496) NET CHANGE IN CASH (28.341) (111.237) (415.977) CASH BALANCE At the beginning of the period 1.420.236 1.003.384 1.966.259 Effect of exchange rate changes on cash (57.121) 774 (182.432) Cash of companies purchased 12.789 - 52.386 At the end of the period 1.347.563 892.921 1.420.236 CASH COMPOSITION Temporary cash investments 1.203.787 885.689 1.345.717 Cash 143.776 7.232 74.519 ===============================================================================================================================
GERDAU S.A.- NON CONSOLIDATED BALANCE SHEET CORPORATE LAW - R$ THOUSAND MAR. 03 MAR. 02 DEC.02 MAR. 03 MAR. 02 DEZ.02 TOTAL ASSETS 7.972.479 5.139.209 7.806.739 CURRENT ASSETS 1.647.924 1.173.015 1.573.867 Cash and cash equivalents 71.665 4.349 38.593 Trade accounts receivable 632.831 441.491 476.157 Taxes recoverable 39.589 15.389 26.451 Temporary cash investments 75.292 104.210 327.087 Inventories 768.377 547.446 619.693 Others 60.170 60.130 85.886 LONG-TERM RECEIVABLES 150.254 138.045 141.748 Accounts receivable 8.908 21.565 8.908 A/R with related parties 7.742 36.687 8.825 Others 133.604 79.793 124.015 PERMANENT ASSETS 6.174.301 3.828.149 6.091.124 Investments 4.470.512 2.201.430 4.410.913 Fixed assets 1.696.266 1.617.070 1.672.543 Deferred 7.523 9.649 7.668 =============================================================================================================================== CORPORATE LAW - R$ THOUSAND MAR. 03 MAR. 02 DEC.02 MAR. 03 MAR. 02 DEZ.02 TOTAL LIABILITIES 7.972.479 5.139.209 7.806.739 CURRENT LIABILITIES 1.781.747 853.111 1.728.521 Loans and Financing 1.353.806 571.696 1.237.464 Debentures - 4.716 - Trade accounts payable 152.953 110.045 148.328 Taxes payable 140.928 95.739 110.111 Dividends payable 65.058 29.803 163.135 Other accounts payable 69.002 41.112 69.483 LONG-TERM LIABILITIES 2.709.415 1.511.513 2.784.992 Loans and Financing 978.023 979.200 1.032.164 Debentures 568.559 300.891 539.922 A/P with related parties 1.006.522 - 1.048.425 Other accounts payable 156.311 231.422 164.481 SHAREHOLDERS' EQUITY 3.481.317 2.774.585 3.293.226 Capital stock 1.335.120 1.320.133 1.335.120 Capital reserves 326.734 267.573 310.368 Profit reserves 1.647.738 1.110.413 1.647.738 Retained earning 171.725 76.466 - ===============================================================================================================================
GERDAU S.A. - NON CONSOLIDATED FINANCIAL STATEMENT CORPORATE LAW - R$ THOUSAND 1Q2003 1Q2002 4Q2002 1T2003 1T2002 4T2002 GROSS SALES REVENUE 1.526.932 1.036.166 1.456.669 Deductions of gross revenues (313.684) (227.788) (319.294) NET SALES REVENUES 1.213.248 808.378 1.137.375 Cost of sales (714.417) (473.248) (687.574) GROSS PROFIT 498.831 335.130 449.801 OPERATING RESULT (173.602) (191.265) (190.352) Selling expenses (71.022) (53.786) (73.034) General and administrative expenses (84.327) (61.818) (79.023) Financial result (48.733) (48.543) 60.637 Fianancial revenues 23.865 13.861 34.775 Financial expenses (72.598) (62.404) 25.862 Other operating revenues 1.638 2.081 2.611 Equity pick-up 28.842 (29.199) (101.543) OPERATING PROFIT 325.229 143.865 259.449 NON-OPERATING RESULT (606) (5.300) (18.458) Non-operating expenses (606) (5.300) (18.458) PROFIT BEFORE TAXES/PARTICIPATION 324.623 138.565 240.991 Provision for income tax and social contribution (56.618) (29.217) (39.269) Deferred income tax (17.566) 2.179 (21.806) Statutory participation (4.538) - (4.478) NET PROFIT FOR THE PERIOD 245.901 111.527 175.438 ------------------------------------------------------------------------------------------------------------------------------- Profit per lot of 1,000 shares - R$ 2,15 0,98 1,54 Book value per lot of 1,000 shares 30,51 24,45 28,86 Outstanding shares (million) 114.118 113.492 114.118 =============================================================================================================================== CASH FLOW CORPORATE LAW - R$ THOUSAND 1Q2003 1Q2002 4Q2002 1T2003 1T2002 4T2002 NET INCOME 245.901 111.527 175.438 Equity pick up (28.842) 29.199 101.543 Provision for credit risk 2.441 - 4.911 Gain/Loss in fixed asset disposal 571 524 735 Gain/Loss in liquidation of investment 35 4.170 - Monetary and exchange variation (24.228) 16.849 (98.167) Depreciation and amortization 48.462 45.446 46.780 Income tax and social contribution 31.660 12.033 55.672 Interest paid 92.332 41.052 69.493 Contingencies/legal deposits 2.852 2.652 3.469 Increase (decrease) in trade account payable (157.850) (18.812) 54.810 Changes in inventories (148.684) (47.546) (96.493) Changes in trade accounts payable (2.514) (3.435) 8.646 Changes in other assets and liabilities account 26.372 10.944 (580) NET CASH PROVIDED BY OPERATING ACTIVITIES 88.508 204.603 326.257 Fixed assets acquisitons/ disposals (72.372) (48.490) (75.501) Deferred charges (239) (550) (256) Investments acquisitions/ disposals (55.123) (485.449) (404.926) Dividends 24.328 10.590 17.457 CASH (APPLIED TO) INVESTING ACTIVITIES (103.406) (523.899) (463.226) Fixed assets suppliers 7.321 1.515 12.976 Working capital financing 67.648 (13.915) 195.437 Debentures (2.938) 58.091 (40.620) Proceeds from fixed assets financing 29.831 450.285 82.494 Payments of fixed assets financing (84.702) (98.346) (77.496) Interest paid for financing (27.926) (28.347) (42.337) Inter companies loans 461 (3.091) 529 Dividend/ interest & statutory particip, payment (193.520) (115.737) (1.454) CASH PROVIDED BY (APPLIED TO) FINANCING ACTIVITIES (203.825) 250.455 129.529 NET CHANGE IN CASH (218.723) (68.841) (7.440) CASH BALANCE At the beginning of the period 365.680 177.400 373.120 At the end of the period 146.957 108.559 365.680 CASH COMPOSITION Temporary cash investments 75.292 104.210 327.087 Cash 71.665 4.349 38.593 ===============================================================================================================================
GERDAU S.A. - CONSOLIDATED BALANCE SHEET CORPORATE LAW - R$ THOUSAND MAR. 03 MAR. 02 DEC.02 MAR. 03 MAR. 02 DEZ.02 TOTAL ASSETS 14.891.878 9.871.859 14.462.008 CURRENT ASSETS 5.822.891 3.380.820 5.371.089 Cash and cash equivalents 142.164 6.539 71.368 Trade accounts receivable 1.735.708 951.361 1.376.029 Taxes recoverable 71.254 54.480 60.573 Temporary cash investments 1.202.161 889.906 1.359.288 Inventories 2.390.961 1.359.638 2.219.981 Others 280.643 118.896 283.850 LONG-TERM RECEIVABLES 586.642 319.967 553.098 Accounts receivable 10.938 9.345 10.938 A/R with related parties 9.825 37.087 7.585 Others 565.879 273.535 534.575 PERMANENT ASSETS 8.482.345 6.171.072 8.537.821 Investments 513.077 325.279 916.234 Fixed assets 7.946.577 5.829.171 7.597.318 Deferred 22.691 16.622 24.269 =============================================================================================================================== CORPORATE LAW - R$ THOUSAND MAR. 03 MAR. 02 DEC.02 MAR. 03 MAR. 02 DEZ.02 TOTAL LIABILITIES 14.891.878 9.871.859 14.462.008 CURRENT LIABILITIES 6.406.050 2.851.400 5.388.897 Loans and Financing 4.561.931 1.874.990 3.707.916 Debentures 7.726 4.716 - Trade accounts payable 1.177.648 596.805 925.541 Taxes payable 239.293 137.407 167.189 Dividends payable 65.059 32.713 167.656 Other accounts payable 354.393 204.769 420.595 LONG-TERM LIABILITIES 3.863.557 3.048.552 4.652.468 Loans and Financing 1.937.179 2.158.418 2.750.492 Debentures 752.571 287.629 709.367 Other accounts payable 1.173.807 602.505 1.192.609 Minority Shareholders 1.140.954 1.197.322 1.127.417 SHAREHOLDERS' EQUITY 3.481.317 2.774.585 3.293.226 Capital stock 1.335.120 1.320.133 1.335.120 Capital reserves 326.734 267.573 310.368 Profit reserves 1.647.738 1.110.413 1.647.738 Retained earning 171.725 76.466 - ===============================================================================================================================
GERDAU S.A. - CONSOLIDATED FINANCIAL STATEMENT CORPORATE LAW - R$ THOUSAND 1Q2003 1Q2002 4Q2002 1T2003 1T2002 4T2003 GROSS SALES REVENUE 3.924.515 2.053.310 3.081.499 Deductions of gross revenues (597.676) (394.417) (515.141) NET SALES REVENUES 3.326.839 1.658.893 2.566.358 Cost of sales (2.495.271) (1.161.377) (1.821.229) GROSS PROFIT 831.568 497.516 745.129 OPERATING RESULT (478.804) (334.120) (479.771) Selling expenses (91.997) (71.331) (98.603) General and administrative expenses (188.431) (123.382) (174.345) Financial result (109.480) (125.136) 57.537 Fianancial revenues 7.888 23.802 38.189 Financial expenses (117.368) (148.938) 19.348 Other operating revenues 38 - (84.849) Other operating expenses - (1.338) - Equity pick-up (88.934) (12.933) (179.511) OPERATING PROFIT 352.764 163.396 265.358 NON-OPERATING RESULT (997) (12.412) (22.104) Non-operating expenses (997) (12.412) (22.104) PROFIT BEFORE TAXES/PARTICIPATION 351.767 150.984 243.254 Provision for income tax and social contribution (72.901) (34.802) (40.989) Deferred income tax 12.939 9.166 (2.134) Statutory participation (4.538) - (5.079) NET PROFIT FOR THE PERIOD 287.267 125.348 195.052 --------------------------------------------------------------------------------------------------------------------- Contolling Shareholders 245.901 111.527 175.438 Minority Shareholders 41.366 13.821 19.614 ===================================================================================================================== CASH FLOW CORPORATE LAW - R$ THOUSAND 1Q2003 1Q2002 4Q2002 NET INCOME 287.267 125.348 195.052 Equity pick up 88.934 12.933 179.511 Provision for credit risk 2.399 - 3.056 Gain/Loss in fixed asset disposal 844 1.554 2.227 Gain/Loss in liquidation of investment 35 4.170 3.331 Monetary and exchange variation (7.661) 18.815 (177.532) Depreciation and amortization 154.542 109.485 126.233 Income tax and social contribution 33.404 11.878 69.058 Interest paid 144.114 51.958 123.181 Contingencies/legal deposits (1.227) 9.456 2.551 Increase (decrease) in trade account payable (340.219) (89.710) 177.340 Changes in inventories (138.275) (2.962) (154.056) Changes in trade accounts payable 204.794 9.789 (94.754) Other accounts in operating activities (24.264) (6.894) 13.958 NET CASH PROVIDED BY OPERATING ACTIVITIES 404.687 255.820 469.156 Fixed assets acquisitons/ disposals (278.657) (153.138) (139.247) Deferred charges 743 (603) 685 Investments acquisitions/ disposals (138) (96.440) 105.628 CASH (APPLIED TO) INVESTING ACTIVITIES (278.052) (250.181) (32.934) Fixed assets suppliers 1.963 1.487 13.697 Working capital financing 145.002 18.831 115.185 Debentures 2.065 58.091 (48.942) Proceeds from fixed assets financing 126.666 471.291 9.458 Payments of fixed assets financing (185.660) (499.386) (844.634) Interest paid for financing (64.438) (40.531) (101.411) Inter companies loans 3.164 (8.994) 19.306 Dividend/ interest & statutory particip, payment (197.396) (123.579) (1.037) CASH PROVIDED BY (APPLIED TO) FINANCING ACTIVITIES (168.634) (122.790) (838.378) NET CHANGE IN CASH (41.999) (117.151) (402.156) CASH BALANCE At the beginning of the period 1.430.656 1.012.822 1.962.858 Effect of exchange rate changes on cash (57.121) 774 (182.432) Cash of companies purchased 12.789 - 52.386 At the end of the period 1.344.325 896.445 1.430.656 CASH COMPOSITION Temporary cash investments 1.202.161 889.906 1.359.288 Cash 142.164 6.539 71.368 ====================================================================================================================