SAO PAULO, Nov. 10, 2016 /PRNewswire/ -- Eternit S.A. (BM&FBOVESPA:ETER3) announced its results for the 3Q16.
The construction materials industry ended the third quarter of 2016 with a weak performance, according to the Brazilian Construction Materials Industry Association (ABRAMAT). During the period, the Company adjusted its operations by reducing its inventory levels to meet market demand, both in chrysotile mining and in the line of finished products, fiber-cement production and concrete roofing tiles.
Chrysotile sales volume in 3Q16 reached 44,300 tons, down 23.3% from 3Q15 due to the contraction of the construction materials sector and the role of chrysotile in the fiber-cement production process for the domestic market. In the foreign market, the main factors were an aggressive pricing policy followed by mining companies in Russia and Kazakhstan and the competitiveness of metal roofing panels in major markets in Asia. In the same period, fiber-cement sales reached 199,600 tons, down 1.3% from 3Q15, whereas concrete roofing tile sales decreased 26.1%, mainly due to industry slowdown, higher unemployment, lower household income and credit restrictions.
Consolidated net revenue amounted to R$204.3 million in 3Q16, down 16.6% from 3Q15, mainly due to the lower sales volume in mining, especially in exports, with a reduction in USD prices to face competition, as well as the depreciation of the USD against the BRL.
Adjusted EBITDA reached R$16.5 million in 3Q16, down 67.4% from 3Q15. This decrease is due to contraction in operating margins due to the decline in sales volume, low utilization of operating capacity, and sale of a mix with lower value added, despite the Company's efforts to reduce operating expenses, thus partially offsetting the contraction in adjusted EBITDA.
Consequently, and despite the improved equity pickup and net financial result in 3Q16, Eternit posted net loss of R$7.3 million.
Capex totaled R$4.0 million in 3Q16, increasing 166.7% from 3Q15, and was allocated to maintaining and modernizing the Group's industrial facilities.
The Company's dividend policy, as determined in the Bylaws, remains unchanged, but fresh distributions will be made once positive results are recorded.
Time: 02.00 p.m. Brazilian Local Time – 11.00 a.m. New York – 04.00 p.m. London
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SOURCE Eternit S.A.