CSN misses earnings deadline, reports unaudited results

Brazilian steelmaker CSN reported unaudited net revenues of 17.2bn reais (US$5.49bn) for 2016, compared with 15.3bn reais in 2015, mostly due to gains made in mining operations.

The third largest steel group in the country said late on Monday that it was going to miss a regulatory deadline to file its earnings release for the year ending December 31, 2016 due to an internal reorganization, according to a company statement.

Unaudited adjusted Ebitda reached 4.08bn reais in 2016, up 25% compared to 2015, while the Ebitda of CSN's steel unit was up 5% year-on-year to 1.89bn reais.

Sales of CSN's steel products were down 3% to 4.86Mt in full-year 2016, while iron ore sales were up 44% to 37Mt.

MERGER

A US$16bn merger of CSN's mining and logistics units with its Asian partners in the Namisa iron ore venture was concluded on November 2015.

The merger created a new miner called Congonhas Minérios, a world-class integrated operation consisting of a mine with 3Bt of high-quality iron ore reserves with the world's fourth lowest production costs, in addition to a railway and port.

The 2016 earnings deadline was missed due to a review of the accounting treatment determined for the transactions involved in the deal, which resulted in the combination of mining and related logistics assets, without changing the structure of that combination, the steelmaker stated.