Gerdau sees resumption and extends investment program
Valor Econômico
The performance of Gerdau in the third quarter and in the aggregate in the year until September was still far from the levels registered in the same periods of 2008, but the gradual recovery in the business in the last months has encouraged the company to increase the program of investments in modernization and increase of the capacity for the coming years. The amount was revised to R$ 9.5 billion in the period from 2010 to 2014 (the equivalent to US$ 5.5 billion at the current exchange rate), compared to a prior planning of US$ 3.6 billion from 2009 to 2013.
The Group also announced the resumption of the anticipation of dividends that had been suspended in the first quarter of this year. According to the Financial Vice-President and Vice-President of Investor Relations, Osvaldo Schirmer, on the 26 this month, Gerdau S.A. will distribute R$ 106.5 million (US$ 62 million) to the shareholders as interest on the net equity, that is, R$ 0.075 per share. Metalúrgica Gerdau will pay R$ 67.1 million (US$ 39 million), that is, R$ 0.175 per share.
According to André Gerdau Johannpeter, CEO, Brazil will receive 80% of the investments foreseen for the 2010-2014 cycle. He explained the perspectives are "optimistic" for the economy and for the demand for steel in the country next year, with emphasis on the sectors of construction, automotive and also infrastructure works that will be influenced by Growth Acceleration Program, the exploration of the pre-salt layer and the arrangements for the 2014 FIFA World Cup and the 2016 Olympic Games.