Gerdau listed companies reached record market
value in 2006, with shares showing high liquidity
on the stock markets where they are traded
In 2006, Gerdau Group shares performed better than
the indices of the stock markets on which these shares
are traded. The Group has three listed companies:
Metalúrgica Gerdau S.A. (with shares traded on the
São Paulo stock exchange, Bovespa), Gerdau S.A.
(São Paulo, New York and Madrid stock exchanges)
and Gerdau Ameristeel Corp. (New York and Toronto
stock exchanges). Together, the Gerdau companies
have a base of 113,300 shareholders.
Increased liquidity was recorded in relation to previous
years, with a higher average daily trading volume. This
performance reflects the Group’s effort to grow with
profitability and transparency, keeping in close contact
with shareholders, investors and market analysts.
It also reflects an attractive dividend policy that includes
the distribution of dividends and/or interest on capital
stock and bonuses to shareholders.
The development of a stronger relationship with the
market also brought good results in the United States
and Canada. As of 2006, the performance of Gerdau
Ameristeel is being monitored by analysts from JP
Morgan and Goldman Sachs.
Incentive to small investors
The Gerdau Group distributes bonus shares for Metalúrgica
Gerdau S.A. and Gerdau S.A. shareholders as a way
of adjusting prices, increasing liquidity and facilitating
the access of small investors to standard lots of
shares at a lower price. In April 2006, a 50% bonus
share was distributed on the total outstanding shares.
Buyback program
Another practice is a structured company share
buyback program. The objective of this action is
to show confidence in the performance of shares.
This sound policy has been positively evaluated
by the capital markets.
The shares are bought to be held in treasury, as
established in the organization’s Long Term Incentive
Program. In 2006, Metalúrgica Gerdau S.A. bought
958,300 of its own shares for R$ 35.2 million.
Gerdau S.A. bought 2.4 million shares for R$ 73.5
million, equivalent to 78.6% of the projected total.
Sustainability index
At the end of 2006, the shares of Gerdau companies
in Brazil were included in the São Paulo Stock
Exchange (Bovespa) Corporate Sustainability Index
(ISE). The index is made up of 34 companies
with high share liquidity and commitment to the
sustainability of their business.
The companies are selected based on the triple
bottom line concept, which takes into account
economic/financial, social and environmental
aspects. Corporate governance, general and
product indicators are also considered. Gerdau
shares correspond to 5.2% of the ISE.
Share performance
Metalúrgica Gerdau S.A. – The value of PN (GOAU4)
papers increased 43.3%, against a 33% increase
in the Bovespa index (Ibovespa). In the last five
years, Metalúrgica Gerdau shares demonstrated
a variation of 1,904.4% compared with 227.6%
for the Ibovespa.
Gerdau S.A. – The value of PN (GGBR4) papers
increased 38.5% at Bovespa. Since 2002, the value
of these shares has increased 1,243.2%. On the New York Stock Exchange (NYSE), Gerdau S.A. (GGB)
ADRs had a positive performance of 46.5% in 2006,
against 16.3% for the Dow Jones index. At Latibex,
the Madrid stock exchange, the value of Gerdau S.A.
shares increased 48.8% as opposed to 23.8% for
the market reference index.
Gerdau Ameristeel Corporation – The value of Gerdau
Ameristeel Corp. shares (GNA.TO) increased 59.1%
on the Toronto stock exchange against 14.5% for
the TS 300 index. On the New York Stock Exchange,
the value of shares (GNA) increased 59.6%.
Shareholder compensation
At Gerdau S.A. and Metalúrgica Gerdau S.A., the
shareholder compensation policy establishes the
payment of dividends equivalent to at least 30% of
the adjusted net profit for the year. Gerdau Ameristeel
Corp. distributes a fixed dividend and for the third
consecutive year has paid a one-time supplementary
dividend reflecting the good performance in these years.
In 2006, the amount paid for dividends and/or
interest on capital stock reached R$ 416.3 million
for Metalúrgica Gerdau S.A., with a 5.2% dividend
yield (dividend per share/share price on the last day
of the year). At Gerdau S.A., R$ 895.1 million was
paid to shareholders, with a 3.9% dividend yield.
The good results obtained by Gerdau Ameristeel
allowed the company to distribute a special dividend
of US$ 0.22 per share in the first quarter of 2006,
totaling US$ 67.1 million. The fixed quarterly dividend
of US$ 0.02 per share totaled US$ 91.4 million
(3.4% return) for the year.
top ▲