UPDATE 2-Brazil's Gerdau posts profit plunge as sales drop, but analysts unfazed
(Adds analyst comment in paragraphs 5 and 6)
SAO PAULO, Aug 8 (Reuters) - Brazilian steelmaker Gerdau SA reported on Tuesday a 50% year-on-year drop in its second-quarter adjusted net profit, landing at 2.14 billion reais ($435.86 million), as revenue was dragged down by slower sales.
The result was slightly above the 2.1 billion-real net income estimated by analysts polled by Refinitiv, with analysts welcoming the result.
The company said in a securities filing that its performance was solid, "even amid a global scenario of lower consumption and resilient inflation in several markets, directly affecting demand."
Steel sales in the period fell 9.6% to 2.93 million metric tons, driving net revenue down 20.5% to 18.26 billion reais, below analysts' median forecast of 18.7 billion reais.
Still, analysts at JP Morgan research said in a note that the result brought no surprise.
"All in all, the quarter confirms a normalization trend for the industry - peak performance is behind us," they said, adding that this was "already expected," and therefore they expect a "neutral reaction to the announced numbers."
Ternium, a leading regional steelmaker with operations across Latin America and the United States, last week posted a profit down 21% as shipments remained steady and prices fell.
($1 = 4.9006 reais) (Reporting by Andre Romani; Writing by Carolina Pulice; Editing by Isabel Woodford and Stephen Coates)
