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[ferro-alloys.com]Gerdau's consolidated steel shipments reached 3.87 million mt in the first quarter of the year, up 7.8% from the year-ago quarter 3.59 million mt, the Brazilian company's first-quarter results showed Wednesday.

Gerdau's total crude steel product also increased to 3.87 million mt in the first quarter, up 3.8% from the year-ago quarter.

"We have positive outlook for 2018 in all markets that Gerdau operates," said CEO Gustavo Werneck in a call to present its Q1 results.

In its Brazilian business unit, shipments increased 12.8% year on year to 1.43 million mt, with long steel accounting for 74% of the total.

Long steel shipments grew 8.2% in Q1 to 1.07 million mt, with domestic market representing 60% of this total. Flat steel shipments reached 367 million mt, 28.8% above 2017 Q1 deliveries.

Gerdau expects a domestic market recovery in Brazil, but the company is "prepared for some volatility" due to presidential elections scheduled to the second half of this year, Werneck said.

Gerdau's North America and specialty steel business units shipments also increased. In North America, shipments totaled 1.68 million mt in Q1, 8.3% above the year ago quarter, while special steel shipments grew 16.6% in the same comparison to 514,000 mt.

The general growth was partially offset by South America business unit, which reported a fall in shipments to 376,000 mt, 23.1% below 2017 Q1, "mainly due to the deconsolidation of Colombia [operation], as of June 2017," Gerdau said in its report.

Gerdau sold 50% of its assets in its Colombian longs mill Diaco to Putney Capital Management in the second quarter of 2017.

Gerdau's consolidated net revenue rocketed 22.8% to Real 10.38 billion ($2.87 billion) in Q1 from the year-ago quarter, while net profit plummeted 45.6% to Real 448.41 million, mainly due to the "reversal of an adjustment to a contingent liability" made in Q1 2017.

• [Editor:王可]