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Gerdau SA (GGB) reported 4Q EBITDA of R$1.025B, ahead of the Street’s R$1.013B and last year’s R$815m, but down 16% sequentially.

Shipments reached 4.7m tonnes in 4Q, compared with 4.5m tonnes in 4Q 2010, with the increase particularly owing to an increase in demand in Brazil and the US. Brazil saw growth in civil construction, while the North American market benefited from improved manufacturing and energy demand. Shipments in the quarter fell from 4.8m tonnes in 3Q; management said that the seasonal decrease in Brazil was offset by increased exports of semi-finished steel, and North American shipments exceeded expectations considering the affect of winter on construction.

Management expects global steel consumption to rise by 5.4% in 2012, with 70% of the consumption from developing economies where most of Gerdau’s operations are; GGB expects the US to see a gradual, consistent recovery.

The company also talked about plans to increase rebar capacity in the US as well as the potential for a spin-off of GGB’s iron ore assets.

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Russel Metals (RUS) reported 4Q earnings of C$0.46/share exceeding the Street’s C$0.40, 3Q’s C$0.43 and the year-ago EPS of C$0.26. The seasonal pick-up in energy tubulars as well as a volume increase in the steel distributors segment contributed to the strong results.

Management said 1Q has started off well with strong order intake and mill price increases apparently holding, though the company doesn’t have a strong sense of where prices are heading.

The company said that M&A activity is expected to pick up in 2012 and that a dividend increase in 2012 is likely.  Management expects steady demand for energy tubulars in 2012, with the primary growth driver being oil sands projects.

Our full report is available to subscribers only and provides further thoughts on Russel’s 4Q earnings report and conference call as well as the implication for the stock and other equities.

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Sims Metal Management (SMS) reported EBITDA of A$69 million for the six months ended December 31, 2011 (fiscal 1H 2012), less than half the A$149 million in EBITDA reported in the year-ago period as difficult business environments in North America and the UK hurt operating margins.

Guidance was qualitative with Sims saying that scrap intake has begun to recover while deep sea ferrous export prices firmed in December and January, and recovered once again most recently after a slight softening at the beginning of February.

Management said the company will continue to grow through acquisitions and recently purchased a stake in a Chinese metal recycling company.

Our full report is available to subscribers only and provides further thoughts on Sims’ half-year (ending December 31, 2011) earnings report and conference call as well as the implication for the stock and other equities.

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Vale’s 4Q 2011 adjusted EBITDA came in at $7.396B, below the Street’s forecast of $8.032B, and down significantly from 3Q’s all-time high of $9.631B.

Guidance was for a potentially brighter global economic outlook for 2012, fueled by emerging economies which are expected to see acceleration in the second half of 2012. Declining global inflation, improved monetary policies, and inventory building could also be positive drivers in 2012.  The company said that construction has slowed down meaningfully in China, but a recovery was likely when winter ends.  Vale commented that the second quarter may also see an uptick in activity as the government pursues its housing program.

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Canam (CAM) reported fourth quarter net income of C$3.3 million, or C$0.07/share, up from C$1 million, or C$0.02/share in 4Q 2010. Earnings beat the Street’s C$0.01/share, ranging from C$0.06/share to a loss of C$(0.03)/share. Sales for the period rose by 17.4% to C$286.3 million from C$243.8 million in the year-ago period.

The company said that while it is too early to make any forecast for 2012, markets should be able to continue in the upward trend that began last year.

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Months’ supply (MOS) declined a seasonally normal 0.5 to a healthy 2.3 months in January, as MSCI shipments jumped 26.0% from December to the highest level since September 2008, more than offsetting a 5.1% uptick in total inventories which put tonnage at the highest since November 2008.

The pick-up in January shipments was slightly better than the normal seasonal increase of 23.8%, as continued strength in energy and automotive markets drove stronger-than-normal shipments for plate and flat-rolled.  Partially offsetting this strength was weaker-than-usual shipments for bar, beams and pipe.

Total inventories rose to 8.35 million tons (mt) in January, as tonnage increased for all products, especially beams, pipe and bar.

Our full report is available to subscribers and provides further thoughts on December distributor shipments and inventories by product as well as implications for steel equities.

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