Brazil: Magnesita 1Q16 income

Magnesita Refratários SA announced a net income of US$22.7m between January and March of 2016. The publicly-traded Brazilian Corporation focusses on mining and the production and sale of refractory materials and industrial minerals.

Magnesita’s EBITDA reached US$39.1m in 1Q16 with a 16.9 per cent margin, while the registered net revenue for the period was US$234m.

CEO of Magnesita, Octavio Pereira Lopes, emphasised that despite the economic deterioration in Brazil and the excess of steel production in the world, 1Q16 offered interesting perspectives for the company.

Mr Lopes said, “Despite the challenging scenario, we have been able to compensate the impact on our profitability with emphasis on operational efficiency, cost control and a focus on markets with sustainable profitability.” He also pointed out that the margins reached in the first three months of 2016 were among the highest quarterly results achieved in the past five years.

He concluded that Magnesita will continue its committment to its long term strategic plan to expand into selected markets, while simultaneously increasing profitability, cash flow and return over invested capital.