Votorantim Group’s overall operating performance improved in the first-quarter 2011 compared to the same period in 2010. Sales volume increased in steel, metals and cement, while remained stable in pulp business. Consolidated net revenues and EBITDA amounted BRL$5627m and BRL$1357m, an increase of 11% and 1%, respectively. EBITDA margin declined from 26.5% to 24.0%, impacted by the cement and steel businesses. Metals business accounted for 45% of industrial EBITDA, cement 35%, steel 7% and pulp 13%.
Cement production capacity and EBITDA were negatively impacted in Brazil, as a result of the exchange of certain production plants for Cimpor shares in 3Q10. Nevertheless, sales volume increased 1% in Brazil and 2% in North America. Net revenues went up 6% and totaled BRL$1846m, supported by price increase in Brazil. EBITDA decreased from BRL$662m to BRL$498m mainly due to the exchange of certain production plants for Cimpor shares. In addition, EBITDA was also impacted by higher electricity and petcoke costs in Brazil and increased inventory in North America.