Geographically diversified Strong market share and cost position in Brazil Increasingly benefiting from consolidation trends in North America Wide product scope in long steel products Growth strategy based on acquisitions and high capital expenditures Cyclical and volatile industry Intermittent import competition and volatile performance in North America Standard&Poor's Ratings Services' ratings on Gerdau S.A. reflect the company's adequate geographic diversification through the Americas and an expanding specialty steel business, with very strong and growing market shares in Brazil and North America, respectively; the improved business profile of its North American operation; and our expectation that the company will follow a prudent acquisition policy in the long term that will not consistently jeopardize its improved capital structure. These positives
