CVRD, steelmakers among LatAm's top profitmakers

Rio de Janeiro-based mining giant CVRD (NYSE: RIO) and several Brazilian steelmakers were among Latin America's 20 most profitable companies in 2004, according to a report by consultancy Economática. CVRD, the world's largest producer of iron ore, was third overall in the rankings, with a profit of US$2.4bn, according to Economática. However, CVRD had the largest profit in Latin America, excluding state-run companies, and the largest ever for a private company. Profits at Latin American companies rocketed 31% to US$28.6bn in 2004, up from US$21.6bn in 2003, Economática said. Ten of the top 20 most profitable companies were Brazilian. Belo Horizonte-based steelmaker Usiminas, Brazil's second-largest steelmaker with installed capacity of 9.5Mt/y, was 10th on the list with net profits of US$1.14bn. Usiminas recently completed a buyout of flat-steel subsidiary Cosipa's outstanding shares. Gerdau, Latin America's largest long-steel maker, followed closely in 11th place and US$1.07bn. Gerdau, which controls Acominas and US-based Gerdau Ameristeel, has global installed capacity of 8.4Mt/y. São Paulo-based CSN was 16th with US$747mn. CSN is currently expanding production capacity to 8Mt annually by 2006. The company also benefits from owning two iron ore mines, Casa de Pedra and Pedreira da Bocaina, and railroad logistics arms MRS, CFA and FCA. Around the region, Argentine steelmaker Tenaris closed 2004 with the 13th highest profits of US$785mn, while mining giant Southern Peru was 19th with US$685mn and Mexican mining-railroad conglomerate Grupo México 20th with profits of US$684mn.