Gerdau S.A. (Gerdau), one of the largest steelmakers in Brazil, posted an adjusted net income of R$1.43 billion for the third quarter of this year, rising by 51.5% compared to the previous quarter but falling by 10% from the same period a year ago. The drop reflected the challenges to the steel industry, including global demand fluctuations and currency impacts.

The adjusted EBITDA also fell by 10% year on year to R$ 3.02 billion, and narrowed profit margins made the EBITDA margin fall to 17.4% from 19.6%.

However, favorable exchange rates for exports partially offset lower foreign sales prices. The company’s net revenue slightly grew by 1.8% year on year to R$17.38 billion.

In the first three quarters of the year, Gerdau’s net profits reached R$3.62 billion, a year-on-year decrease of nearly 41%.