Brazil's Votorantim reports loss in Q1 2017; aluminium sales volume up

Brazilian metals and cement group Votorantim, formerly known as Votorantim Industrial has posted a net loss of reais 546million (US$166million) for Q1 2017, in comparison to 144million-real profit in Q1 2016.

The loss was mostly driven by the sale of non-strategic cement assets and the capital increase in the long steel operations in Brazil. Adjusted EBITDA fell to 625million reais from 869million reais in the same quarter last year. The Ebitda margin also dropped to 11% from 14%.

The value of goods sold also dropped 8% YOY to stand at 4.68bn reais, due to the 11% appreciation of the Brazilian real on the consolidation of operations abroad, drop in cement sales in Brazil and temporary suspension of nickel operations.

On a positive note, in Votorantim's metals division, aluminium sales revenue from its four aluminium operations increased 10% to 757million reais YOY in the quarter.

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Capex decreased 12% to 570million reais, with 47% corresponding to expansion projects and 53% to the areas of maintenance, modernization, safety, health and the environment.

Notably, on February 23, 2017, Votorantim announces the takeover of the local long steel operations by ArcelorMittal Brazil.