SAO PAULO: Brazilian steelmaker Companhia Siderurgica Nacional will announce an asset sale over the next 10 days in a move designed to boost the company's capital and reduce its debt, executives said on a conference call on Tuesday. CSN, as the company is known, on Monday posted a second-quarter loss of 43 million reais ($13.5 million), missing analysts' consensus forecast for a profit of 38 million reais in the quarter.
The company's debt rose to 8.3 times its annual earnings before interest, tax, debt and amortization, a measure of operating profitability known as EBITDA. In June of last year, CSN had debt equivalent to 5.6 times EBITDA. Chief Executive Benjamin Steinbruch said on the Tuesday call that CSN is working on the sale of a "core asset" to improve its capital structure.
"We are working to sell even part of a core asset," he said, adding that he expects CSN to post a profit in the third quarter and sees steel prices stabilizing in the second half of the year.
CSN has been trying to sell non-core assets since last year, but a loan refinancing deal gave the company a respite. One of the assets in advanced discussions for sale is the container terminal operator Sepetiba Tecon SA in Rio de Janeiro, three sources with knowledge of the matter said.
The steelmaker had first considered selling its full stake in the terminal, but then began looking for a minority partner to help expand Tecon.
Reuters reported in April that candidates to acquire the terminal operator include Wilson Sons Ltd, PSA International Pte Ltd, Santos Brasil Participa??es SA and buyout firm Advent International Corp.
Shares in CSN fell 2.5 percent in S?o Paulo trading, but this year the stock is up 173 percent after the conclusion of a debt refinancing with its biggest creditors, state-owned Banco do Brasil SA and Caixa Econ?mica Federal SA.
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