SAO PAULO, May 13, 2016 /PRNewswire/ -- Eternit S.A. (BM&FBOVESPA:ETER3) announced its results for the 1Q16.
In the first quarter of 2016, Brazil's construction materials industry contracted 17.3%, with this performance weaker than that projected for the whole of the year by the Brazilian Construction Materials Industry Association (ABRAMAT). However, Eternit outperformed the overall industry in the period, despite the recession and the industry's negative growth.
Chrysotile sales volume in the quarter amounted to 52,300 tons, decreasing 25.2% from 1Q15, which is explained by the slowdown in the construction materials industry in the local market and the competitiveness of steel roofing panels in Asia resulting from the availability of iron mineral at low price, as well as by the strong competition in the export market. Fiber-cement sales volume in the quarter amounted to 197,700 tons, down 8.0% from 1Q15, reflecting the weaker demand for construction materials and the slowdown in renovations. Meanwhile, sales volume of concrete roofing tiles remained virtually stable (+0.2%).
Consolidated net revenue amounted to R$228.9 million in 1Q16, mainly due to the appreciation of 36.0% in the U.S. dollar against the Brazilian real, which partially neutralized the lower sales volumes of chrysotile mineral and fiber-cement.
Adjusted EBITDA in the quarter amounted to R$38.1 million, 23.2% lower than in 1Q15, due to the 14.8% drop in gross profit (lower sales volumes, change in sales mix and higher costs due to inflation), which exceeded the decline in operating expenses. In view of the aspects affecting Adjusted EBITDA cited above and the higher net financial expense, net income in the quarter amounted to R$8.3 million.
CAPEX came to R$3.6 million in 1Q16, declining 74.2% from the year-ago period, with the funds allocated to maintaining and modernizing the Group's industrial facilities.
The Company ended the quarter with consolidated net debt of R$126.5 million, decreasing 12.8% from the end of 4Q15.
Time: 11.00 a.m. Brazilian Local Time – 10.00 a.m. New York – 03.00 p.m. London
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SOURCE Eternit S.A.