Companhia Siderurgica Nacional Q3 2009 Earnings Conference Call Transcript - Thomson StreetEvents

Companhia Siderurgica Nacional Q3 2009 Earnings Conference Call Transcript

Companhia Siderurgica Nacional Q3 2009 Earnings Conference Call Transcript - Thomson StreetEvents
Companhia Siderurgica Nacional Q3 2009 Earnings Conference Call Transcript
Published Nov 04, 2009
12 pages (6640 words) — Published Nov 04, 2009
Price US$ 54.00  |  Buy this Report Now

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Abstract:

Final Transcript of SID earnings conference call or presentation, 4-Nov-09 9:00am ET

  
Brief Excerpt:

...Paulo Penido Pinto Marques Companhia Siderurgica Nacional - CFO and IR Officer Luis Martinez Companhia Siderurgica Nacional - Executive Sales Director Eneas Garcia Diniz Companhia Siderurgica Nacional - VP Operations Juarez Saliba Companhia Siderurgica Nacional - Head of Iron Ore Division Charles Putz Companhia Siderurgica Nacional - CEO of Namisa...

  
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Transcript

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Company:
Ticker
SID
Time
9:00am ET
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The following is excerpted from the question-and-answer section of the transcript.

(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)

Question: Carlos de Alba - Morgan Stanley - Analyst: Yes, good morning. Paulo, thank you for taking the question. The first I would like to start, we saw a dramatic rebound -- a very aggressive rebound in exports in the quarter. Could you talk about how sustainable this is, and particularly in the mix composition of this, given that the jump that we saw was mainly driven by hot-rolled coil and slabs?

Answer By: Luis Martinez - Companhia Siderurgica Nacional - Executive Sales Director


Question: Carlos de Alba - Morgan Stanley - Analyst: Thank you, Luis. And could you talk a little bit about how you see the market in 2010? Clearly, the expectation is that the Brazil economy is going to do very well, much better than the rest of the world. So do you expect to see also a 90% sales in the domestic market next year and only 10%? That would be one part of the question. And the second part of the question would be, do you have already a guidance or a range for sales of steel of next year?

Answer By: Luis Martinez - Companhia Siderurgica Nacional - Executive Sales Director


Question: Carlos de Alba - Morgan Stanley - Analyst: (Multiple speakers). Thank you, Luis. Would it be possible then to go back to say 2007 levels next year?

Answer By: Luis Martinez - Companhia Siderurgica Nacional - Executive Sales Director


Question: Carlos de Alba - Morgan Stanley - Analyst: Thanks. And then final question is, if I may, I would like to understand a little bit better how is the run of mine being transferred to the Namisa working in terms of the pricing that you are booking (technical difficulty) getting a little bit reduced or lower net realized prices than we would expect? So maybe this is the cause of it? Or alternatively, it could be that you are exporting more, which that's what the numbers show, on a CNS basis and that you are having to pay the freight at a higher level than in the past?

Answer By: Eneas Garcia Diniz - Companhia Siderurgica Nacional - VP Operations


Question: Carlos de Alba - Morgan Stanley - Analyst: Yes, I wanted to know, given that your exports of iron ore increased quarter-on-quarter, but the realized price didn't -- the way we calculated it came down, could it be possible that you are selling more on a CNS basis and that you are incurring higher freight costs than you did in the past?

Answer By: Eneas Garcia Diniz - Companhia Siderurgica Nacional - VP Operations


Question: Carlos de Alba - Morgan Stanley - Analyst: Thank you very much, Eneas.


Question: Diego Torres - ING - Analyst: Good morning. Thank you for taking my call. My question is regarding, what is the management procedure regarding calling or refinancing the perpetual note on the first call date on July 2010? Thank you.

Answer By: Paulo Penido Pinto Marques - Companhia Siderurgica Nacional - CFO and IR Officer


Question: Diego Torres - ING - Analyst: Perfect. Thank you.


Question: Felipe Hirai - Merrill Lynch - Analyst: Hi. Good morning. Good afternoon, everyone. I have two questions. The first one is related to shipments in the domestic market. So in your estimation, you intend to sell at least 80% of the total shipment of 2010 in the domestic market. And doing some very quick calculations, the number that we get here to the implied sales in the domestic market in 2010 is something close to or even above 30%. So my first question is, is this the kind of sales that you were expecting to see in the domestic demand in 2010?

Answer By: Luis Martinez - Companhia Siderurgica Nacional - Executive Sales Director


Question: Felipe Hirai - Merrill Lynch - Analyst: Okay, thank you. And my second question is if you could just share with us your view on global steel prices. So what you're seeing, you're seeing that prices could continue to deteriorate in the US and Europe, or if you expect a rebound to happen anytime soon? Thank you.

Answer By: Paulo Penido Pinto Marques - Companhia Siderurgica Nacional - CFO and IR Officer


Question: Felipe Hirai - Merrill Lynch - Analyst: Okay. Thank you very much. Unidentified Company Representative Thank you.


Question: Alexander Miguel - ITAU Securities - Analyst: Hi. Good morning, everyone. I would just like to understand much better, as you mentioned in the Portuguese call, your strategy to -- for investments in the steel segment. So you mentioned that you would like to do it through a minority -- through a partnership with a strategic player. But I would like to understand better the timeline of the investments. Do you already plan to invest -- to begin this project in 2010 or 2011, or is this more for a long-term view? Thank you.

Answer By: Juarez Saliba - Companhia Siderurgica Nacional - Head of Iron Ore Division


Question: Alexander Miguel - ITAU Securities - Analyst: Okay, Juarez. Could you give us a sense of timing? Do you expect to get this license by the first half of next year?

Answer By: Juarez Saliba - Companhia Siderurgica Nacional - Head of Iron Ore Division


Question: Alexander Miguel - ITAU Securities - Analyst: Okay, thank you very much, Juarez.

Answer By: Juarez Saliba - Companhia Siderurgica Nacional - Head of Iron Ore Division


Question: Yuri Maslov - Nevsky Capital - Analyst: Yes. Hello, I've got a few questions, if I may. And the first one is about your guidance for the prices in Q4 in the domestic market. And specifically maybe you can address my concern, is that if you want to go from 90% of the volume being sold domestically, is there a risk that you will have to undercut the prices and therefore the prices in Q4 are going to be lower than in Q3?

Answer By: Luis Martinez - Companhia Siderurgica Nacional - Executive Sales Director


Question: Yuri Maslov - Nevsky Capital - Analyst: Okay. Can you please remind again, what's your guidance for the total sales volume in Q4?

Answer By: Luis Martinez - Companhia Siderurgica Nacional - Executive Sales Director


Question: Yuri Maslov - Nevsky Capital - Analyst: I understand. And I have a question about the coal cost at the moment. What is the latest status on your renegotiation of the carry-over tonnage with the Australians?

Answer By: Paulo Penido Pinto Marques - Companhia Siderurgica Nacional - CFO and IR Officer


Question: Yuri Maslov - Nevsky Capital - Analyst: Okay. And one more question. You increased the level of debt in Q3. What was the rationale for this?

Answer By: Paulo Penido Pinto Marques - Companhia Siderurgica Nacional - CFO and IR Officer


Question: Yuri Maslov - Nevsky Capital - Analyst: And the final question on my part, on Casa de Pedra on your iron ore assets, there was a headline on Bloomberg, presumably coming from your Portuguese call earlier today. And apparently you're trying to consolidate all the assets into one company. Could you please talk a little bit about this?

Answer By: Paulo Penido Pinto Marques - Companhia Siderurgica Nacional - CFO and IR Officer


Question: Yuri Maslov - Nevsky Capital - Analyst: Okay. Thank you very much. Unidentified Company Representative You're welcome.


Question: Leonardo Correa - Barclays Capital - Analyst: Yes, hi. Good morning. Well, my first question is for Martinez just on the outlook for the (inaudible) steel demand in 2010. But looking into the recent numbers from the World Steel Association, they come up with -- they came up with a target or with an expectation of an increase of apparent demand of around 8% to 10% for the domestic market next year. Looking to the numbers and looking what the companies are guiding here in Brazil, the number seems relatively low. Just to get, Martinez, your views on this number and do you think there is upside risk to this number? I know that you're still in preliminary stages and you're still defining a budget. But just to get a qualitative view on this number. I guess this number will probably come from IBS inputs, right, which you guys probably have a say on? So just to get your sense of the number and if you think it's too low.

Answer By: Luis Martinez - Companhia Siderurgica Nacional - Executive Sales Director


Question: Leonardo Correa - Barclays Capital - Analyst: Okay (multiple speakers). And my next question is regarding CapEx (technical difficulty). On Namisa, you noted in this call that you only spent BRL6m on CapEx for Namisa. Just to get an update on project execution of Namisa, are things developing as planned initially? Is guidance for 2010 on Namisa volumes, will they be delivered or has anything changed since then? That's my other question, please.

Answer By: Charles Putz - Companhia Siderurgica Nacional - CEO of Namisa


Question: Leonardo Correa - Barclays Capital - Analyst: Okay, Charles. Thank you very much.

Answer By: Charles Putz - Companhia Siderurgica Nacional - CEO of Namisa


Question: Leonardo Correa - Barclays Capital - Analyst: Okay, Charles. Thank you very much on that. Just some further color on Namisa, with respect to CapEx. Given that we've been seeing very little investments in this segment from the beginning of the year, should we see anything significant, going into 2010? Do you have any figures that we can work with in terms of CapEx for Namisa specifically in the year 2010?

Answer By: Charles Putz - Companhia Siderurgica Nacional - CEO of Namisa


Question: Leonardo Correa - Barclays Capital - Analyst: Okay, thank you.

Answer By: Paulo Penido Pinto Marques - Companhia Siderurgica Nacional - CFO and IR Officer

Table Of Contents

Companhia Siderurgica Nacional Q3 2010 Earnings Conference Call (English) Transcript – 2010-10-29 – US$ 54.00 – Final Transcript of SID earnings conference call or presentation, 29-Oct-10 10:00am ET

Companhia Siderurgica Nacional Q2 2010 Earnings Conference Call (English) Transcript – 2010-08-11 – US$ 54.00 – Final Transcript of SID earnings conference call or presentation, 11-Aug-10 11:00am ET

Companhia Siderurgica Nacional Q1 2010 Earnings Conference Call (English) Transcript – 2010-05-07 – US$ 54.00 – Final Transcript of SID earnings conference call or presentation, 7-May-10 11:00am ET

Companhia Siderurgica Nacional Q4 2009 Earnings Conference Call (English) Transcript – 2010-02-26 – US$ 54.00 – Final Transcript of SID earnings conference call or presentation, 26-Feb-10 10:00am ET

Companhia Siderurgica Nacional Q2 2009 Earnings Conference Call Transcript – 2009-08-07 – US$ 54.00 – Final Transcript of SID earnings conference call or presentation, 7-Aug-09 12:00pm ET

Companhia Siderurgica Nacional Q1 2009 Earnings Conference Call (English) Transcript – 2009-05-14 – US$ 54.00 – Final Transcript of SID earnings conference call or presentation, 14-May-09 3:00pm ET

Companhia Siderurgica Nacional Q4 2008 Earnings Conference Call (English) Transcript – 2009-03-30 – US$ 54.00 – Final Transcript of SID earnings conference call or presentation, 30-Mar-09 4:00pm ET

Companhia Siderurgica Nacional Q3 2008 Earnings Conference Call (English) Transcript – 2008-11-18 – US$ 54.00 – Final Transcript of SID earnings conference call or presentation, 18-Nov-08 9:00am ET

Companhia Siderurgica Nacional Q2 2008 Earnings Conference Call (English) Transcript – 2008-08-19 – US$ 54.00 – Final Transcript of SID earnings conference call or presentation, 19-Aug-08 11:00am ET

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Thomson StreetEvents. "Companhia Siderurgica Nacional Q3 2009 Earnings Conference Call Transcript" Nov 04, 2009. Alacra Store. Nov 13, 2019. <http://www.alacrastore.com/thomson-streetevents-transcripts/Q3-2009-Companhia-Siderurgica-Nacional-Earnings-Conference-Call-T2536667>
  
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