SAO PAULO, July 31 (Reuters) - Brazilian steelmaker

Gerdau ( GGB ) on Wednesday reported a 55.9% decline in

second-quarter adjusted net profit compared with the same period

last year, as its steel sales and output keep falling.

WHY IT'S IMPORTANT

Gerdau ( GGB ) is Brazil's largest steelmaker. Its results have been

affected so far in 2024 by lower sales amid higher steel imports

in Brazil.

BY THE NUMBERS

Gerdau ( GGB ) reported a 945 million reais ($167.03

million)adjusted net profit for the three-month period ended in

June, higher than the 907.5 million reais expected in a Reuters

poll of analysts, but well below the 2.1 billion reais a year

earlier.

The steelmaker posted adjusted earnings before interest,

taxes, depreciation and amortization (EBITDA) of 2.6 billion

reais, down nearly 31% from a year earlier. Analysts were

expecting an adjusted EBITDA of 2.7 billion reais.

Gerdau ( GGB ) had a net revenue decline of 9.0% in the second

quarter, to 16.6 billion reais, as its steel sales from April to

June fell 7.5% from a year earlier, to 2.7 million metric tons.

Raw steel production by the company fell 5.3% in the

three-month period ended in June compared with the same period

in 2023, to 2.9 million tons.

KEY QUOTES

"The high presence of imported products in Brazil continues

to affect sales volumes in the domestic market," Gerdau ( GGB ) said on

Wednesday in a securities filing.

"The (adjusted net profit) result reflects the slowdown seen

in the company's operating results."

($1 = 5.6600 reais)

($1 = 5.6575 reais)