Eternit Focuses on Optimization of Existing Investments and Net Consolidated Revenue Grows 9% in 1Q11

SAO PAULO, May 10, 2011 /PRNewswire/ -- Eternit S.A. (BM&FBovespa: ETER3; OTC: ETNTY), a company with 71 years of activity and the market leader in the roof coverings, panels and cement slabs,  today announces its  results for the first quarter of 2011.

The largest and most diversified roof covering industry in Brazil, Eternit operated at full capacity in the chrysotile ore mining business while its fiber cement and concrete tiles production lines worked at over 80%.

Chrysotile and fiber cement sales volume remained stable compared to the 1Q10, while the concrete tiles segment reported year-on-year growth of 22.8%.

In 1Q11, the Company's net consolidated revenue amounted to R$ 186.3 million, a 9.1% improvement over 1Q10. This performance reflects the increase in sales volume of the concrete tiles business and the price increases for all product lines despite the unfavorable exchange rate on export of the mineral chrysotile.

Net revenue from the other products line (metallic roofing tiles, polyethylene water tanks, bathroom chinaware, lavatory seats and water pipe filters) grew 79.5% in relation to 1Q10, a reflection of consumer confidence in the Eternit brand.

Although operating costs and expenses reported a faster increase proportional to consolidated net income – which contributed to the narrower margins - Eternit has embarked on a concerted drive to control overheads in order to restore margins.

In 2010, the Company consolidated its position as the largest and most diversified roof covering industry in Brazil. From now on, the medium and long-term target is to become the largest and most diversified construction materials industry in the country with about 50% of its sales linked to diversified lines.

Invitation

Conference Call and Webcast (Portuguese – simultaneous translation into English)
Presentation: Elio A. Martins – Chairman and Investor Relations Officer
Date: Wednesday May 11, 2011
Time: 11:00 a.m. Brasilia time; 10:00 a.m. New York and 3:00 p.m.  London

The presentation and slides may be viewed on the website by registering on www.ccall.com.br/eternit/1q11.htm or through the Company's Investor Relations website: www.eternit.com.br/ir

To listen to the presentation by telephone:
Participants in Brazil - (55-11) 4688-6361
Participants from other countries - (1 786) 924-6977
Password for participants: Eternit

Contact:
Eternit S.A. Investor Relations Area
Rodrigo Lopes da Luz - [email protected]
Barbara M. Tanure Goncalves - [email protected]
Tel: (55-11) 3813-6034 or (55-11) 3038-3818

SOURCE Eternit S.A.