Votorantim announces 9M11 results
Votorantim Participações SA has released its nine months of 2011 results.
Votorantim presented consistent results, supported by a diversified portfolio which includes business focused in the Brazilian housing and infrastructure markets. Sales volume increased in cement, pulp, steel and zinc, while it remained stable in nickel. The vement business accounted for 45% of industrial EBITDA, metals 37%, steel 7% and pulp 12%.
Cement sales volume remained stable in North America and increased 3% in Brazil, which accounted for 87% of the total sales volume. Net revenues went up 4% and totalled BRL 6543m (US$3634m), supported by price increase and better volumes in Brazil. EBITDA decreased 10%, from BRL 2119m to BRL 1918m, due to higher petcoke (+28%) and electricity (+22%) costs along with freight expenses in Brazil. The company is investing in 10 new plants to increase production capacity by more than 10Mta by 2013. In 2011, four plants already started up representing more than 3Mta in new capacity.
Total debt amounted to BRL 23.4bn, an increase of 4% compared to BRL 22.5bn recorded in December 2010. Cash balance was BRL 5.9bn, with additional liquidity arising from the revolving credit facility of BRL 3.1bn.
CAPEX disbursements in the period totalled BRL 2.8bn, with expansion projects accounting for 54%. For 2012, shareholders have approved the increase in cement capacity to be the unique expansion project for the year, on the back of still strong Brazilian fundamentals.
Published under Cement News
