August 5, 2010 / 1:46 PM / 8 years ago

UPDATE 1-Gerdau Ameristeel posts profit; sales jump

* Q2 EPS $0.11 Vs yr-ago loss of $0.12

* Q2 sales jump 30 pct to $1.3 bln

TORONTO, Aug 5 (Reuters) - Gerdau AmeriSteel GNA.TO, a unit of Brazilian steelmaker Gerdau (GGBR4.SA), said on Thursday it jumped to a quarterly profit from a year-ago loss, as both steel prices and shipments strengthened.

Net income in the quarter ended June 30 came in at $45.8 million, or 11 cents a share, compared with a year-ago loss of $51.6 million, or 12 cents.

Earlier on Thursday, Gerdau — Brazil’s largest maker of steel for the construction industry — posted quarterly earings that topped expectations, as a real estate and public works boom in the country stoked demand for steel and other materials. [ID:nN05234765]

In June, Gerdau announced that it plans to pay up to $1.7 billion to take full ownership of its North American unit, as it looks to reduce borrowing costs and increase efficiency. [ID:nN02163941]

Gerdau AmeriSteel said quarterly net sales rose 30 percent to $1.33 billion, as both average steel selling prices and finished steel shipments rose sharply in the period.

Gerdau Ameristeel is one of the largest mini-mill steel producers in North America, with an annual production capacity of about 10 million tonnes of finished steel products. (Reporting by Euan Rocha; Editing by Frank McGurty)

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