Despite a 0.5 percent drop in total sales volumes compared with the last three months of last year, Gerdau said price rises on the international market helped boost fourth quarter net revenue by more than 39 percent to 4.89 billion reais.
Sales in Brazil totalled 1.63 million tonnes, 5.2 percent less than in the fourth quarter of last year. But sales abroad in Latin America and North America by its affiliate Gerdau Ameristeel Corp, rose 5.3 percent to 1.48 million tonnes.
Gerdau said fourth quarter earnings before interest, taxes, depreciation, and amortisation (EBITDA) almost doubled to 1.29 billion reais from 660.8 million in the year-earlier period.
The market expected a fourth quarter EBITDA of 1.54 billion reais and net revenue of 5.16 billion reais, according to the Reuters survey.
The consolidation of North Star Steel facilities in the United States, which Gerdau Ameristeel agreed to buy in September as part of a $266 million deal, helped boost fourth quarter production, the Brazilian group said.
Fourth quarter output of crude steel products, such as slabs, blooms, and billets, rose 9.5 percent to 3.47 million tonnes. Production of rolled products grew to 2.58 million tonnes, 9.2 percent more than in the fourth quarter of 2003.
Gerdau went on a spending spree last year, especially in North America, as it tried to capitalise on buoyant global demand for steel and higher prices.
Gerdau's annual net profit more than doubled to 3.23 billion reais from 1.25 billion in 2003, as sales volumes gained 3.4 percent to 12.6 million tonnes. Annual output of crude steel rose 90 percent in 2004, while output of rolled products grew 13.6 percent.