Exhibit 99.2

GERDAU S.A.

Condensed consolidated

interim financial information

at June 30, 2007 and 2006

GERDAU S.A.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands of U.S. Dollars, except number of shares)

ASSETS

	June 30, (Unaudited)		December
	2007	2006	31, 2006
Current
Cash and cash equivalents	492,764	732,316	485,498
Restricted cash	13,466	9,154	13,512
Short-term investments
Trading	1,888,538	1,673,147	2,221,422
Available for sale	197,457	299,458	123,430
Held to maturity	81,124	76,201	138,200
Trade accounts receivable, net	1,702,114	1,289,931	1,283,420
Inventories	2,679,823	2,028,129	2,380,878
Unrealized gains on derivatives	941	395	2,660
Deferred income taxes	39,550	55,701	51,730
Tax credits	248,395	159,738	253,519
Prepaid expenses	50,607	39,592	39,301
Other current assets	103,602	79,608	90,860
Total current assets	7,498,381	6,443,370	7,084,430
Non-current assets
Property, plant and equipment, net	7,078,118	5,018,572	5,990,629
Deferred income taxes	148,808	227,291	187,710
Judicial deposits	91,974	70,320	80,103
Unrealized gains on derivatives	7,569	12,627	6,623
Tax credits	243,330	129,553	192,967
Equity investments	225,590	185,938	197,511
Investments at cost	18,501	11,750	11,377
Goodwill	548,443	389,274	336,768
Prepaid pension cost	272,754	90,153	243,558
Advance payment for acquisition of investment	14,895	75,593	14,895
Other non-current assets	250,421	171,371	142,294
Total assets	16,398,784	12,825,812	14,488,865

F-2

GERDAU S.A.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands of U.S. Dollars, except number of shares)

LIABILITIES

	June 30, (Unaudited)				December
	2007		2006		31, 2006
Current liabilities
Short-term debt and current portion of long-term debt	1,047,939		1,050,567		1,065,120
Trade accounts payable	1,269,231		1,007,357		1,113,338
Income taxes payable	38,387		54,887		41,810
Unrealized losses on derivatives	1,216		—		1,258
Deferred income taxes	45,294		100,960		25,230
Payroll and related liabilities	227,827		143,370		177,421
Dividends and interest on equity payable	1,217		1,504		99,003
Taxes payable, other than income taxes	241,026		118,563		182,136
Other current liabilities	305,141		299,899		218,987
Total current liabilities	3,177,278		2,777,107		2,924,303
Non-current liabilities
Long-term debt, less current portion	3,224,431		2,608,840		3,128,868
Debentures	521,168		444,453		443,280
Deferred income taxes	429,463		270,642		416,046
Accrued pension and other post-retirement benefits obligation	260,405		217,347		251,415
Provision for contingencies	207,760		205,446		189,725
Unrealized losses on derivatives	14,329		6,658		10,489
Deferred credit related to acquisition of Corporación Sidenor	129,103		—		106,899
Other non-current liabilities	232,766		174,096		204,710
Total non-current liabilities	5,019,425		3,927,482		4,751,432
Total liabilities	8,196,703		6,704,589		7,675,735
Commitments and contingencies
Minority interest	2,098,143		1,629,450		1,882,489
SHAREHOLDERS’ EQUITY
Preferred shares - no par value - 800,000,000 authorized shares and 435,986,041 shares issued at June 30, 2007 and 2006 and at December 31, 2006.	2,253,377		2,253,377		2,253,377
Common shares - no par value - 400,000,000 authorized shares and 231,607,008 shares issued at June 30, 2007 and 2006 and at December 31, 2006.	1,179,236		1,179,236		1,179,236
Additional paid-in capital	132,786		129,949		131,546
Treasury stock - 5,030,532 and 4,200,596 preferred shares at June 30, 2007 and 2006, respectively, and 5,103,344 at December 31, 2006.	(45,354	)	(28,409	)	(46,010	)
Legal reserve	82,603		6,960		74,420
Retained earnings	2,117,843		1,143,710		1,459,818
Accumulated other comprehensive income (loss)
·   Foreign currency translation adjustment	348,963		(157,946	)	(151,798	)
·   Unrealized net gains and losses on pension and postretirement benefits, net of tax	20,478		—		30,052
·   Fair value of securities available for sale, net of tax	14,006		—		—
·   Additional minimum pension liability	—		(35,104	)	—
Total shareholders’ equity	6,103,938		4,491,773		4,930,641
Total liabilities and shareholders’ equity	16,398,784		12,825,812		14,488,865

F-3

GERDAU S.A.

CONDENSED CONSOLIDATED INTERIM STATEMENT OF INCOME (Unaudited)

(in thousands of U.S. Dollars, except number of shares and per share amounts)

	Three-month period ended June 30,				Six-month period ended June 30,
	2007		2006		2007		2006
Sales	4,240,712		3,306,257		8,102,669		6,451,293
Less: Federal and state taxes on sales	(379,624	)	(289,129	)	(693,169	)	(586,258	)
Less: Discounts	(69,634	)	(30,503	)	(128,641	)	(71,848	)
Net sales	3,791,454		2,986,625		7,280,859		5,793,187
Cost of sales	(2,809,637	)	(2,142,220	)	(5,450,693	)	(4,228,062	)
Gross profit	981,817		844,405		1,830,166		1,565,125
Sales and marketing expenses	(84,736	)	(68,054	)	(156,968	)	(127,557	)
General and administrative expenses	(250,125	)	(202,765	)	(455,298	)	(414,481	)
Other operating income (expenses), net	12,941		(11,221	)	39,616		62,757
Operating income	659,897		562,365		1,257,516		1,085,844
Financial expenses	(104,867	)	(72,858	)	(226,459	)	(185,532	)
Financial income	85,325		91,864		209,924		224,953
Foreign exchange gains and losses, net	124,994		21,549		212,255		115,750
Gains and losses on derivatives, net	(11,843	)	9,898		(7,784	)	10,571
Equity in earnings of unconsolidated companies, net	20,230		37,180		38,826		66,476
Income before taxes on income and minority interest	773,736		649,998		1,484,278		1,318,062
Provision for taxes on income
Current	(137,027	)	(121,282	)	(274,678	)	(247,445	)
Deferred	(30,669	)	(7,691	)	(59,672	)	(43,431	)
	(167,696	)	(128,973	)	(334,350	)	(290,876	)
Income before minority interest	606,040		521,025		1,149,928		1,027,186
Minority interest	(179,722	)	(107,967	)	(298,890	)	(179,547	)
Net income	426,318		413,058		851,038		847,639
Per share data (in US$)
Basic earnings per share
Preferred	0.64		0.62		1.28		1.28
Common	0.64		0.62		1.28		1.28
Diluted earnings per share
Preferred	0.64		0.62		1.27		1.26
Common	0.64		0.62		1.27		1.26
Number of weighted-average common shares outstanding – Basic and diluted	231,607,008		231,607,008		231,607,008		231,607,008
Number of weighted-average preferred shares outstanding – Basic	432,990,363		432,990,363		432,620,192		432,620,192
Number of weighted-average preferred shares outstanding – Diluted	438,699,588		438,699,588		437,727,307		438,926,281

F-4

GERDAU S.A.

CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS (Unaudited)

(in thousands of U.S. Dollars)

	Three-month period ended June 30,				Six-month period ended June 30,
	2007		2006		2007		2006
Cash flows from operating activities
Net income	426,318		413,058		851,038		847,639
Adjustments to reconcile net income to cash flows from operating activities:
Depreciation and amortization	135,770		118,738		287,178		242,916
Equity in earnings on unconsolidated companies	(20,230	)	(37,180	)	(38,826	)	(66,476	)
Foreign exchange loss	(124,994	)	(118,143	)	(212,255	)	(115,750	)
Losses (gains) on derivative instruments	11,843		(9,898	)	7,784		(10,571	)
Minority interest	179,722		107,967		298,890		179,547
Deferred income taxes	30,669		7,691		59,672		43,431
Loss (gain) on disposal of property, plant and equipment	8,046		(4,993	)	9,380		(10,228	)
Provision (reversal) for doubtful accounts	1,343		2,378		3,482		5,830
Provision for contingencies	435		(12,870	)	3,991		(4,633	)
Distributions from joint ventures	11,257		30,750		31,661		61,153
Other	—		—		(35	)	—
Changes in assets and liabilities:
Decrease (increase) in accounts receivable	(82,312	)	(107,271	)	(340,378	)	(261,091	)
Decrease (increase) in inventories	(170,101	)	(100,334	)	(135,082	)	30,425
Increase (decrease) in accounts payable and accrued liabilities	(7,814	)	267,660		92,324		214,629
Decrease (increase) in other assets	217,703		(36,529	)	171,743		(129,876	)
Increase (decrease) in other liabilities	10,774		65,952		79,258		70,289
Purchases of short-term investments	408,216		(216,667	)	(414,128	)	(394,177	)
Proceeds from maturities and sales of short-term investments	(154,659	)	16,138		941,526		598,894
Net cash provided by operating activities	881,986		386,447		1,697,223		1,301,951
Cash flows from investing activities
Additions to property, plant and equipment	(380,892	)	(255,009	)	(743,750	)	(496,386	)
Payment for acquisitions in North America	(4,988	)	(107,145	)	(4,988	)	(114,837	)
Payment for acquisition in Argentina	—		—		(3,916	)	(3,916	)
Payment for acquisition in Spain	—		—		—		(200,082	)
Advance payment for acquisition in Peru	—		(60,698	)	—		(60,698	)
Payment for acquisition in Mexico	—		—		(258,840	)	—
Payment for acquisition in Dominican Republic	(42,900	)	—		(42,900	)	—
Payment for acquisition in Venezuela	(4,593	)	—		(4,593	)	—
Cash balance of acquired companies	3,414		22,371		9,652		66,442
Purchases of available for sale securities	(243,969	)	(40,949	)	(461,658	)	(240,515	)
Proceeds from maturities and sales of available for sale securities	187,836		—		387,631		—
Net cash used in investing activities	(486,092	)	(441,430	)	(1,123,362	)	(1,049,992	)

F-5

	Three-month period ended June 30,				Six-month period ended June 30,
	2007		2006		2007		2006
Cash flows from financing activities
Cash dividends and interest on equity paid	(126,612	)	(181,347	)	(306,898	)	(312,250	)
Proceeds from exercise of employee stock options	596		465		992		4,384
Decrease (increase) in restricted cash	—		(14	)	(6	)	463
Debt issuance	475,138		253,304		666,869		728,634
Repayment of debt	(588,275	)	(67,309	)	(877,830	)	(461,131	)
Net related party debt loans and repayments	(78,438	)	(24,526	)	(75,959	)	(16,515	)
Net cash provided by (used in) financing activities	(317,591	)	(19,427	)	(592,832	)	(56,415	)
Effect of exchange rate changes on cash	21,350		(100	)	26,237		4,397
Increase (decrease) in cash and cash equivalents	99,653		(74,510	)	7,266		199,941
Cash and cash equivalents at beginning of period	393,111		806,826		485,498		532,375
Cash and cash equivalents at end of period	492,764		732,316		492,764		732,316

F-6