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US Real-Estate Crisis Puts Big Dent on Brazil’s Wood Industry

Santa Catarina, Brazil Sales by the industry of Santa Catarina state in southern Brazil have accumulated a 7.63% growth from January to September in comparison with the same period of last year but the state saw a significant drop in its activity in September.

The SC Industrial Indicators survey, conducted by the Federation of Industries of the State of Santa Catarina (Fiesc) among 203 large and medium-sized industries, and disclosed Monday, November 5, shows that industrial sales by the state had a 7.58% reduction in September compared with August.

The greatest decrease in sales in the month of September took place in the wood products sector (-13.23%), mostly due to the United States real estate sector crisis. Other important sectors in the Santa Catarina state industry that had sales reductions were those of foodstuffs (-10.64%), metal products (-12.61%) and electrical machinery, devices and materials (-9.02%).

According to the FIESC, despite the decrease in sales in September, demand is expected to improve late this year. Until September, the best performances in comparison with 2006 were recorded in the segments of foodstuffs (18.66% increase), metallic products (13.77%) and machinery and equipment (12.78%), and highlights were refrigerators and compressors.

The remaining survey indicators followed the same sales trend, of reduction in August and growth in the accumulated result for 2007. Hours worked in production for the surveyed industries increased by 1.15% from January to September over the first nine months of 2006, with the greatest advancements in machinery, electric devices and material, automotive vehicles and metal products.

Total wages paid by industries in the state of Santa Catarina are 8.60% higher in the accumulated result for 2007. The most significant rises in comparison with last year were those of manufacturers of electrical machinery, devices and material, electronic material, and communication and foodstuff equipment.

The use of installed capacity in large and medium-sized industries in the state of Santa Catarina currently stands at 83.51% in the accumulated result for the year, against an average of 82.39% in the same period of 2006.

Five segments have already exceeded a 90% rate of use of production capacity: foodstuffs, cellulose and paper products, ceramics tiles, machinery and equipment, and electrical machinery, devices, and material.

CNI

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  • Show Comments (7)

  • João da Silva

    [quote]Ohhhhh stupid question: Why has Bank Itau bought the Brazilian branches of Bank of Boston……INCLUDING THEIR BAHAMAS BRANCH ??????[/quote]

    A very stupid question by you, as usual. Another stupid question of mine (as usual): Why did the Airlines BRA decide to close its operation and fire 1100 employees? According to what I read they need R$30Millions to keep their operation going and eventually buy the 100 EMBRAER aircraft to expand their fleet. Considering that the investors are Goldman Sachs, Bank of Boston, etc; and their investment is being managed by the ex-president of Banco Central, why did BRA decide to shut down its business? R$30 M is peanuts for these investors.

    You better start updating your “Der Spreadsheet” and tell us all what you know.

  • ch.c.

    continued for …. SOMETHING STINKS IN HERE !!!!!
    And what about the 60 % of your population generating 40 % of the Brazilian GDP….THAT DONT PAY TAXES….by definition ?????
    Of course on top of the wealthiest citizens who also use various brazilians chanels to BOTH EVADE TAXES…..AND….. SMUGGLE MONEY OUT OF THE COUNTRY !!!!!
    yESSSSSS……. SOMETHING STINKS IN HERE !

    Ohhhhh and by courtesy, this time, I will not even talk of the corruption practices used by your politicians, also smuggling money out of the country !!!!! SOMETHING STINKS IN HERE…TOOO !!!!

  • ch.c.

    Yesssssssss ……… SOMETHING STINKS IN HERE !!!!!!
    Joao is right !!!
    and what about your textile industry ? Declining because China is shining ?????

    And it is even more ……. SOMETHING STINKS IN HERE, because how could 7 million BRL a month equals to 1 billion BRL…IN TAXES ALONE within 18 months ??????
    Yesssssss……. SOMETHING STINKS IN HERE !

    Ohhhhh and is Brazil not smuggling billions BRL of PIRATED GOODS INTO BRAZIL….in order to evade…the royalties due ??????
    Yesssss….. SOMETHING STINKS IN HERE…TOO ! With Brazilian government blessings too !!!!!

    I can see, just once more, how ONE SIDED Brazilians are !

    Ohhhhh stupid question: Why has Bank Itau bought the Brazilian branches of Bank of Boston……INCLUDING THEIR BAHAMAS BRANCH ??????
    Hmmmmmm…….yessssssss…… SOMETHING STINKS IN HERE !

    😀 😉 😀 😉 😀 😉

  • João da Silva

    US Real-Estate Crisis Puts Big Dent on Brazil’s Wood Industry
    Not really. The dent was made long before the US real estate crisis started.The windows and door makers were exporting their good at 3.40 Reais per dollar and it was suffecient to cover the manufacturing cost, leaving them with an adequate profit margin. During the past 3 years, the labour cost increased almost 33% and the dollar devauled almost by 50% in front of Real. The manufacturers can no way make a profit. Some are still exporting, because they worked hard to conquer the American customers and they dont want to lose them.Of course that part of their loss is being offset by increase in the prices for domestic customers. The small manufacturers who solely depended on the export market are closing or dow sizing their businesses. Unfortunately, they are in the same situation as that of leather goods manufcturers in Rio Grande do Sul.

    So lets not blame the US Real Estate Crisis for the woes and sorrows of our brave, small and medium sized industries that were until now helping to build our foreign currency reserve.

  • SOMETHING STINKS IN HERE!!!!!

    HOW CAN BRAZZIL MAG BE THE ONLY NEWS ORG THAT DIDN’T PLUBLISHED ALL THIS ARTICLES???
    Brazil investigates UBS, Credit Suisse, AIG in money laundering probe
    À‚·Buy This Report
    À‚·Print This Page
    À‚·E-Mail
    11/06/2007 04:03:08 PM EST
    AP WorldStream English (all)

    SAO PAULO, Brazil_Police detained 19 people Tuesday for allegedly taking part in a scheme to help large Brazilian companies evade taxes by laundering money through two major Swiss banks and U.S.-based American International Group Inc., the world’s largest insurer.
    The raids at 44 sites in four states were part of a clampdown by Brazilian authorities on tax evasion that last month led to raids on the local offices of U.S. network-equipment maker Cisco Systems Inc.
    Two Swiss nationals were taken into custody Tuesday _ one of them a Swiss-based employee of UBS AG, Switzerland’s largest bank, the company said. Authorities were seeking the arrest of another foreigner currently outside of Brazil, but did not disclose that person’s nationality.
    Detectives also seized over US$4 million (Àƒ‚À¢‚¬2.75 million) in Brazilian and U.S. currency, said Ricardo Saadi, the federal police detective in charge of the investigation.
    He declined to name the banks under investigation, but federal judge Fausto Martin de Sanctis in a statement identified the financial institutions under investigation as UBS, Credit Suisse Group, AIG and Clariden, a unit of Credit Suisse.
    “We’re still gathering the facts, but we’re not aware of any wrongdoing by any AIG private bank employee,” said Chris Winans, spokesman for New York-based AIG.
    Messages left seeking comment with UBS and Credit Suisse, both based in Zurich, were not immediately returned, though a UBS spokeswoman acknowledged before the judge identified the banks that the employee had been detained.
    Saadi said the alleged scheme the involved the movement of as much as 7 million reals (US$4.1 million; Àƒ‚À¢‚¬2.8 million) a month out of Brazil for big companies seeking to avoid taxes.
    The Brazilian companies, which Saadi declined to name because of secrecy laws, deposited the funds into overseas accounts via black-market money changers with accounts in Brazil and abroad. The companies used the money hidden abroad to buy merchandise in the United States and China that was then shipped to Brazil, he said.
    Saadi estimated that the companies may have avoided as much as 1 billion reals (US$588 million; Àƒ‚À¢‚¬404 million) in taxes over the last 18 months.
    UBS spokeswoman Rebeca Garcia declined to identify the detained employee, but said he works for the company’s wealth management and business banking division. UBS is trying to find out why he was detained in Sao Paulo during a business trip to Brazil, said Garcia, who declined further comment.
    Saadi said those arrested Tuesday have not been charged but can be detained for at least five days while authorities continue investigating and prosecutors evaluate the case. The 19 arrested Tuesday included the two Swiss nationals and 17 Brazilians ranging from company owners and executives to money changers, he said.
    Tax evasion in Brazil has enormous economic impact that is now becoming a government priority.
    “There’s been capital flight out of Brazil for a long time, but the Brazilians are absolutely starting to pay attention to this,” said Keith Prager, who specializes in investigations in the Latin American financial services sector for the U.S.-based Corporate Resolutions Inc.
    Saadi said the investigation into the banks began after seven Credit Suisse executives were detained last year in Brazil in a money laundering probe.
    The earlier investigation, known as “Operation Switzerland,” focused on whether the executives illegally transferred large sums of money overseas for Brazilian clients. Saadi did not provide an update on the probe involving Credit Suisse Group.
    Tuesday’s detentions came three weeks after federal agents and tax authorities raided the Sao Paulo and Rio de Janeiro offices of Cisco, alleging the U.S. company benefited from a scheme to avoid duties on products shipped from tax havens to Brazil.
    Four Cisco employees were detained, then released. Cisco denied it acted inappropriately, saying it does not import products directly into Brazil.

  • SOMETHING STINKS IN HERE!!!!!

    HOW CAN BRAZZIL MAG BE THE ONLY NEWS ORG THAT DIDN’T PLUBLISHED ALL THIS ARTICLES???
    Swiss banks, AIG probed by Brazil police
    By ALAN CLENDENNING
    AP Business Writer
    SAO PAULO, Brazil — Police detained 19 people Tuesday for allegedly taking part in a scheme to help large Brazilian companies evade taxes by laundering money through Swiss banks UBS AG and Credit Suisse Group and the U.S.-based American International Group Inc.
    The raids at 44 sites in four states were part of a clampdown by Brazilian authorities on tax evasion that last month led to raids on the local offices of U.S. network-equipment maker Cisco Systems Inc.
    Two Swiss nationals were taken into custody Tuesday. One of them was a Swiss-based employee of UBS AG, Switzerland’s largest bank, the company said. Authorities were seeking the arrest of another foreigner currently outside of Brazil, but did not disclose that person’s nationality.
    Detectives also seized over $4 million in Brazilian and U.S. currency, said Ricardo Saadi, the federal police detective in charge of the investigation.
    He declined to name the banks under investigation, but federal judge Fausto Martin de Sanctis in a statement identified the financial institutions under investigation as UBS, Credit Suisse, AIG and Clariden, a unit of Credit Suisse.
    “We’re still gathering information and can’t provide specific comment right now,” said AIG spokesman Chris Winans in New York.
    Messages left seeking comment with UBS and Credit Suisse were not immediately returned, though a UBS spokeswoman acknowledged before the judge identified the banks that the employee had been detained.
    Saadi said the alleged scheme may have involved the movement of as much as 7 million reals ($4.1 million) a month out of Brazil for big companies seeking to avoid taxes.
    The Brazilian companies, which Saadi declined to name because of secrecy laws, deposited the funds into overseas accounts via black-market money changers with accounts in Brazil and abroad. The companies used the money hidden abroad to buy merchandise in the United States and China that was then shipped to Brazil, he said.
    Saadi estimated that the companies may have avoided as much as 1 billion reals ($588 million) in taxes over the last 18 months.
    UBS spokeswoman Rebeca Garcia declined to identify the detained employee, but said he works for the company’s wealth management and business banking division. Zurich-based UBS is trying to find out why he was detained in Sao Paulo during a business trip to Brazil, said Garcia, who declined to comment further.
    Saadi said those arrested Tuesday have not been charged but can be detained for at least five days while authorities continue investigating and prosecutors evaluate the case. The 19 arrested Tuesday included the two Swiss nationals and 17 Brazilians ranging from company owners and executives to money changers, he said.
    Tax evasion in Brazil has enormous economic impact that is now becoming a government priority.
    “There’s been capital flight out of Brazil for a long time, but the Brazilians are absolutely starting to pay attention to this,” said Keith Prager, who specializes in investigations in the Latin American financial services sector for the U.S.-based Corporate Resolutions Inc.
    Saadi said the investigation into the banks began after seven Credit Suisse executives were detained last year in Brazil in a money laundering probe.
    The earlier investigation, known as “Operation Switzerland,” focused on whether the executives illegally transferred large sums of money overseas for Brazilian clients. Saadi did not provide an update on the probe involving Credit Suisse Group.
    Tuesday’s detentions came three weeks after federal agents and tax authorities raided the Sao Paulo and Rio de Janeiro offices of Cisco, alleging the U.S. company benefited from a scheme to avoid duties on products shipped from tax havens to Brazil.
    Four Cisco employees were detained, then released. Cisco denied it acted inappropriately, saying it does not import products directly into Brazil.

  • SOMETHING STINKS IN HERE!!!!!

    HOW CAN BRAZZIL MAG BE THE ONLY NEWS ORG THAT DIDN’T PLUBLISHED ALL THIS ARTICLES???
    Brazil targets Swiss banks in money laundering probe
    Two Swiss nationals were taken into custody Tuesday _ one of them a Swiss-based employee of UBS AG, Switzerland’s largest bank, the company said. Authorities were seeking the arrest of another foreigner currently outside of Brazil, but did not disclose that person’s nationality.
    Detectives also seized over US$4 million (Àƒ‚À¢‚¬2.75 million) in Brazilian and U.S. currency, said Ricardo Saadi, the federal police detective in charge of the investigation
    He declined to name the banks under investigation or the home country of the third bank, but said they helped move as much as 7 million reals (US$4.1 million; Àƒ‚À¢‚¬2.8 million) a month out of Brazil for companies seeking to avoid taxes.

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