Brazil’s Mining Giant CVRD Posts Record Net Profit, a 97% Boost

Companhia Vale do Rio Doce, in the mining sector, announced this week that it had record net profit of US$ 4.095 billion in the second quarter of 2007, an increase of 97.1% over the same period last year. Gross revenues, according to the company, totaled US$ 8.899 billion, also a record value and 45.2% over the total registered in the second quarter of 2006.

According to the company, the increase in sales of the products the company trades was the factor that most influenced the growth of revenues. Sales of non-ferrous minerals answered to 44.2% of revenues, ferrous minerals to 42%, products in the aluminum chain to 8.1% and logistics services to 4.7%.

Exports generated US$ 3.9 billion, also a historic result, according to the mining company, and 54.1% more than in the period between April and June 2006. The main destinations were China, Japan, the United States, Taiwan, Germany and South Korea. The domestic market answered to 15.2% of company revenues, only behind China, with 17.9%.

In the first half, accumulated revenues totaled US$ 16.579 billion, an increase of 53.1% over the first six months of last year. Exports, in turn, totaled US$ 6.4 billion, 33% more than in the first half of 2006.

Investment made by the company totaled US$ 1.439 billion in the second half, 75.9% more than in the same period in 2006. In the half, investment reached US$ 5.759 billion. Excluding acquisitions made by the company, the total investment in the half was US$ 2.779 billion, 46.5% more than in the first six months of 2006.

Anba