Eternit Reports 17% Growth in 4Q11 EBITDA and Progress in Expanding and Diversifying its Businesses

SAO PAULO, March 12, 2012 /PRNewswire/ -- Eternit S.A. (BM&FBOVESPA: ETER3; OTC: ETNTY), a company with 72 years of activity and the market leader in roof coverings with operations in the bathroom chinaware and metallic fittings segments and components for construction systems, today announces its results for the 4th quarter and year 2011 (4Q11 and 2011).

Eternit ended 4Q11 once again reporting a superior performance to that of the sector, operating its chrysotile mining business at full capacity and the fiber cement  and concrete tiles business at about 85% and about 70%, respectively.

Sales of concrete tiles posted an increase of 9.6% compared with 4Q10, principally due to the unveiling of the new Sao Jose Rio do Preto plant, reaching 1.6 million square meters in 4Q11. Conversely, fiber cement volume posted a reduction of 7.5% against 4Q10 due to price increases at the end of 3Q11 and early 4Q11.

Eternit's 4Q11 net consolidated revenue was R$ 220.0 million in 4Q11, a growth of 4.4% compared with 4Q10. Revenue from domestic market business reached R$ 186.6 million, 1.4% more than 4Q10. Net revenue from exports reported a growth of 24.9% in relation to 4Q10 due to an increase in US dollar prices as well as the appreciation of the currency against the Brazilian real.

Consolidated EBITDA (earnings before interest, taxes, depreciation and amortization) amounted to R$ 39.8 million in the fourth quarter of 2011, 17.1% more than in the same period in 2010, equivalent to an EBITDA margin of 18%. In 4Q11, the Company registered net income of R$ 32.1 million, 10.5% more than reported in 4Q10. Net margin in 4Q11 was 15%, 1 p.p. up on the fourth quarter 2010.

The first phase of the Expansion and Diversification Program was responsible for consolidating Eternit's position as the largest and most diversified roof coverings industry in Brazil. The Company ended the year with approximately 20% of its sales from lines into which it has diversified.  The next stage is to consolidate the position of Eternit as the most diversified construction materials industry in the country.

Invitation

Conference Call with Webcast (in Portuguese – simultaneous translation into English)
Presentation: Elio A. Martins – Chairman and Investor Relations Officer
Date: Tuesday March 13 2012
Time: 10:00 a.m. in New York, 11:00 a.m. Brasilia time and 2:00 p.m. in London

The presentation together with slides may be viewed on the website by registering through the site www.ccall.com.br/eternit/4q11.htm or through the Company's Investor Relations website: www.eternit.com.br/ir.

To listen to the presentation by telephone: (55-11) 4688-6361 or +1 786 924-6977 (USA)
Password for participants: Eternit

Playback in English: the recording will be available from March 13 2012 until March 19 2012
Telephone: (55-11) 4688-6312 Password for participants: 9507258

Contacts - Eternit S.A. – Investor Relations - Web Site: www.eternit.com.br/ir
Rodrigo Lopes da Luz - [email protected] - Phone: (55-11) 3038-3818
Paula Dell Agnolo Barhum - [email protected] - Phone: (55-11) 3194-3881
Frederico Gomes Amaral - [email protected] - Phone: (55-11) 3194-3872

SOURCE Eternit S.A.