Brazil’s Braskem Triples Net Income

Braskem S.A., Brazil’s largest petrochemicals company and the leader in the thermoplastic resins segment in Latin America, announced today its financial results for 2004 and 4Q04.

In 2004, Braskem had record net income of 691 million reais (US$ 1 = 2.58 reais), corresponding to a 221% increase compared to 2003. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased by 43%, from 1.8 billion reais in 2003 to 2.5 billion reais in 2004.


The Company also had constant growth in its operating, economic and financial performance indicators. EBITDA margin increased from 19% to 23%.


All of Braskem’s business units operated at utilization rates in excess of 90% in 2004. In 2005, the Company’s production capacity will be at its highest, due to investments made in 2004, which totaled 374 million reais, in addition to other investments that will be completed in 2005. Braskem also plans to operate its units at utilization rates higher than those recorded in 2004.


In 2005, the Company also believes that a positive and additional impact on its results will be generated by productivity and competitiveness improvements resulting from its “Braskem +” an operational and business excellence program aimed at positioning the Company among the most competitive petrochemical companies in the world and which should offer additional gains estimated at R$420 million on an annualized and recurring basis.


In 2004, the year Braskem Plus was implemented, this program generated gains of 90 million reais, also on an annualized and recurring basis, 50% greater than the previously estimated goal for the year.


In 2004, domestic market sales of Braskem’s thermoplastic resins – polyethylene, polypropylene and PVC – increased by 13% growth compared to the previous year, driven by the increased demand for these products in Brazil and due to the continuing expansion of the Brazilian economy in 2004.


Gross revenues exceeded 14 billion reais, and net revenues increased by 20% compared to 2003, totaling more than R$11 billion.


The Company maintained its strategic presence in the international market in 2004. Exports provided net revenues of 710 million reais, 15% higher than the amount recorded in 2003. The increase of international resin prices fully offset the reduction in the volume of exports.


Braskem carried out the largest issuance made by a Brazilian company in the international market in 2004, in an aggregate amount of 1.2 billion reais. In addition, it was highly successful in the implementation of its net debt reduction strategy.


At year end, its net debt totaled 3.9 billion reais, a 38% decrease compared to the amount recorded at the end of 2003. Braskem’s net debt/EBITDA ratio was reduced to 1.5 in December 2004, compared to 3.5 at the end of the previous year.


Braskem S.A
www.braskem.com.br


Business Wire

Tags:

Ads

You May Also Like

Brazil Plays Catch Up in the Wood Industry Investing in Education

The wood sector in Brazil is in expansion mode. Exports of the forest-based sector ...

US and 7 Other Countries Adopt Brazilian Way of Teaching Computer Skills

Brazil is exporting a successful model for schools teaching information technology and citizenship in ...

Exports from Rio Almost Double

Exports from the state of Rio de Janeiro, Brazil, totalled US$ 683.6 million in ...

Poll Gives Brazil’s Lula Presidency Again by a Landslide

Less than two weeks from Brazil’s second-round presidential election the final results are already ...

Forced Resignation of Brazil’s Number 3 Opens Battle in Congress

The speaker of Brazil’s Lower House resigned Wednesday his post and seat in Congress ...

Journalists Kidnapped and Tortured by Brazil’s Police

Paris-based press freedom organization Reporters Without Borders (RSF) is calling for a Brazilian federal ...

Brazil Wants to Reduce Mother and Baby Mortality by 15%

To mark World Health Day, commemorated today, the World Health Organization (WHO) launched the ...

Compromising Tapes

It is still not clear who is behind the mud-throwing effort. The President seems ...

Brazil Scolds Mexico for Visa Requirement and Threatens to Bar Country from Mercosur

The Brazilian Minister of Foreign Relations, Celso Amorim, commented today in New York about ...

Brazilian Tile and Stone Exhibition (Revestir)

Brazil’s Tile Industry Gets its Fashion Week. 30,000 Expected

The Brazilian ceramic tile industry exported last year a total of US$ 429.7 million ...