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 Increasing uncertainty about steel demand and prices 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 conservative acquisition policy in the medium term so that its capital structure
