Operator: Good morning, ladies and gentlemen. At this time, we would like to welcome everyone to CSN's First Quarter 2012 Earnings Conference Call. Today, we have with us the Company's Executive Officers. We would like to inform you that this event is being recorded and all participants will be in listen-only mode during the Company's presentation. After the Company's remarks are over, there will be a question-and-answer session.
We have a simultaneous webcast that may be accessed through CSN's Investor Relations website at www.csn.com.br/ir. The slide presentation may be downloaded from this website. Please feel free to flip through the slides during the conference call. There will be a replay service for this call on the website.
We would like to inform you that due to the number of participants the Company will answer only up to two questions per participant. With no right to reply and therefore we kindly ask that all questions are made at once as soon as the line is opened by the operator.
Before proceeding, let me mention that forward-looking statements are being made under the Safe Harbor of the Securities Litigation Reform Act of 1996. Forward-looking statements are based on the beliefs and assumptions of CSN management and on information currently available to the Company.
They involve risks, uncertainties, and assumptions because they relate to future events, and therefore, depend on circumstances that may or may not occur in the future. Investors should understand that general economic conditions, industry conditions, and other operating factors could also affect the future results of CSN and could cause results to differ materially from those expressed in such forward-looking statements.
Now, I'll turn the conference over to Mr. David Salama, CSN's Investor Relations Officer, who will present the Company's operating and financial highlights for the period. You may now begin your conference call, sir.
David Moise Salama - Executive Officer, IR: Good morning and thank you for participating in the CSN first quarter earnings conference call. With me today in this presentation are the Company's officers.
We'll begin on Slide 3, which shows our consolidated results for the first quarter 2012. Net revenue in the first quarter reached R$3.9 billion, a decrease of 7% compared to the net revenue reported in the first quarter of last year, reflecting mainly poor iron ore sales volume and as well as lower prices. Gross profit in the quarter amounted to R$1.1 billion, a reduction of 29% compared to the first quarter 2011. EBITDA totaled R$1.1 billion in the first quarter, a decrease of 24% in relation to the last quarter of 2012. The EBITDA margin in the first quarter turned and reached 29%.
Let's go now to Slide 4 where it shows the EBITDA evolution. First quarter 2012 EBITDA of R$1.1 billion presents a 24% decrease in relation to the first quarter of 2011. Due to a reduction in iron ore sales, lower iron ore prices in the quarter and an increase in the productive cost in the Steel and Mining segments.
These effects were partially offset by the increase in the Steel sales basically due to our acquisition in there in Germany in first quarter SWT and also the reduction in selling and administrative expense.