Eternit Intensifies Capex and Net Income Grows 50% in 3Q10

SAO PAULO, Nov. 9, 2010 /PRNewswire-FirstCall/ -- In the third quarter 2010, demand for construction material remained intense. The availability of credit, the recovery in purchasing power and increased employment all contributed to the performance of the civil construction industry of which Eternit (BM&FBOVESPA: ETER3) is a part. As in 2Q10, the Company continued to run its chrysotile mining and fiber cement businesses at full capacity while the concrete roofing tiles segment operated at about 80% of installed capacity.

Sales volume of fiber cement amounted to 205.3 thousand tons in 3Q10 and maintained the high level of volumes reported in 3Q09. Chrysotile ore sales grew 16.2% year-on-year despite the limitations of production capacity, registering an output of 81.3 thousand tons due to the reduction in current inventory levels.

Eternit posted record consolidated net revenue of R$ 199.0 million in 3Q10, a 35.5% improvement compared with 3Q09. This reflects increased sales volume, the recovery in prices since October 2009 and the incorporation of revenues generated by Tegula of R$ 20.8 million, all reflecting consumer confidence in Eternit's products.

Consolidated EBITDA reached R$ 37.6 million, a growth of 35.1% when compared with the same period in 2009. For the quarter under review, EBITDA margin remained stable at 19% due to higher expenditures with marketing initiatives for new products together with the Company's defense of the use of chrysotile ore as well as the incorporation of Tegula's operating expenses which totaled R$ 4.9 million. Net consolidated income reached R$ 25.5 million, a growth of 50.2% in relation to 3Q09.

In keeping with the Company's Structured Expansion and Diversification Program, accumulated capital expenditures for 2010 amounted to R$ 80.2 million, including the acquisition of Tegula and the new fiber cement production line unveiled at the Bahia unit in October of this year. Eternit is finalizing studies for the installation of a line for the production of synthetic marble as well as a new fiber cement production line and a multi-products plant, possibly to be located in the Northeast, besides new acquisitions.

Invitation

The presentation together with slides may be viewed on the website by registering through the site www.ccall.com.br/eternit/3q10.htm or through the Company's Investor Relations website: www.eternit.com.br/ir

SOURCE Eternit