An ever-present challenge for commodity company management teams is that there’s only just so much they can control – ultimately end-market demand and pricing, not to mention substantial percentages of their input cost, are beyond the influence. I believe that’s relevant in the case of Brazil’s Gerdau (GGB); management has done its part to run this business about as well as could be expected, but weaker demand in key markets like Brazil and the U.S. are sapping the company’s near-term earnings power.
Management’s expectation for a better second half in 2019 now seems