Eternit Maintains Focus on Its Investment Plan in Q3 of 2014
Topics: Ban Lobby
Nov. 6 — Brazil-based Eternit issued the following news release:
Eternit S.A. (BM&FBOVESPA;:ETER3;OTC:ETNTY) announces its results for the 3Q14.
Demand for construction materials increased slightly in the third quarter compared to previous quarters, according to data from the Brazilian Association of Construction Materials Industry (ABRAMAT) which, however, was not sufficient to recover from the sharp decline in sales in the first half of the year. Eternit significantly outperformed the construction materials sector, with its chrysotile mining segment operating at full capacity, while in the finished products line, production of fiber-cement and concrete tiles kept pace with demand.
Chrysotile mineral volume sold in 3Q14 was 71,600 tons, practically stable (down 1.0%) compared to 3Q13. In the same period, fiber-cement sales, including construction solutions, reached 232,800 tons, increasing 7.5% from 3Q13, whereas concrete roofing tile sales decreased 10.9%, mainly due to the lower demand in the high-end roofing segment, especially in the B2C (business-to-consumer) and building companies segments.
Consolidated net revenue in 3Q14 amounted to R$ 250.3 million, virtually stable compared to 3Q13, mostly driven by higher fiber-cement sales volume and price repositioning in the domestic chrysotile mineral market, which partially offset the lower sales volume of concrete roofing tiles.
EBITDA in 3Q14 reached R$ 41.9 million, 15.1% lower than in 3Q13, due to the factors commented in the section on consolidated net revenue, which minimized the increase in the cost of goods sold, especially mining costs. As a result, net income decreased 28.4% from 3Q13 to R$ 20.3 million in 3Q14.
Investments in 3Q14 totaled R$ 35.0 million, up 59.4% from 3Q13 and primarily went to the establishment of a unit in the state of Amazonas for the research, development and production of construction material inputs and to the maintenance and modernization of the Group’s industrial facilities.
Eternit was elected one of the 150 best companies to work for. The award reflects the recognition among employees that the Company is on the right path in its constant pursuit of excellence in corporate governance, with the focus on professional development and career advancement and on promoting a safe and pleasant working environment.
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