Ah
Gerdau (GGB) - they once loved you so (
May 16: Brazil is Sexy) ... you used to appear on our top weekly performing stocks almost weekly. It is a shame the rest of the world will be entering a period of anarchy, rioting, famine and a return to lifestyles of the 1960s. Just in case the hedge funds are wrong on that thesis we will keep an eye out on you...
this will probably be your last good quarter before the house of cards that is global growth implodes on itself, as America rightfully takes its place as supreme being and overlord.
- Brazilian steelmaker Gerdau (GGB) said on Wednesday its net profit soared 85 percent in the second quarter, lifted by red-hot demand for steel products around the globe and a big increase in output.
- Net income surged to 2.12 billion reais ($1.35 billion) from 1.15 billion reais in the second quarter of 2007 and 1.09 billion reais in the first quarter of this year.
- Gerdau, which has operations throughout the Americas and Europe, said strong demand for steel in all the countries where it operates helped propel sales sharply higher. (that all ends soon though, oil going to $100 means global pestilence and the End of Days)
- Net revenue rose 47 percent in the quarter to 11.1 billion reais, led by a 59 percent jump in sales in North America, where demand for steel remains robust despite the economic slowdown in the United States. (aha - proof of the coming economic rebound in the US - someone send this info to Mr. Kudlow - STAT!)
- A weak U.S. dollar allowed Gerdau's mills in the United States to increase exports significantly, mostly to Central America, the Caribbean, Asia and even South America.
- In Brazil, Gerdau's second-biggest market after North America, net revenue increased 47.5 percent, driven by robust demand from the construction and automobile industries.
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