Boston, MA 10/29/2013 (wallstreetpr) – Companhia Siderurgica Nacional (ADR) (NYSE:SID) is a leading player in the steel industry based out of Brazil. Apart from this, the company also operates other businesses. Its core activities are bifurcated into the following segments: Steel (Starting from the production, sale, and marketing of high value products; such as galvanized steel and metal packaging); Mining (involves in extraction of iron ore); Cement (includes exploration of limestone and dolomite and also having a smelter to manufacture end use products – cement); Logistics (company has port and 2 railway transport company through which it transports all its products); Energy (Power Generation projects)
Apart from this, the company has a gamut of subsidiaries spread across Inal Nordeste SA, Estanho de Rondonia SA, CSN Energia SA, and Companhia Metalic Nordeste to name a few.
Since, the time company has been in the market, it has shown a steady improvement in growth. The consistent growth has been one of the key factors to attract investors into all the above stated segments, in which the company has its core competences. Looking at the global factor, where the demand of various metal products has been in a declining trend and pricings are subdued; SID has not seen any southward movement in its profitability.
It is expected that, since the company is based out of Brazil, the forthcoming World Cup games is likely to give a boost to the steel demand in the country. Having a local presence, it seems that the company is expected to see an increase in revenue growth owing to an increase in volume. Apart from the intermittent demand due to games, increase in infrastructure activities, and improvement in construction activity would also support the volume growth in the near future.
It is believed that given the downturn in the metal industry, the company was able to report consistent growth. The recent decline in stock performance argues well for the investor to increase their exposure to the company which has a steady state growth backed by higher volume.
