Braskem posts US$20mn Q3 losses

Brazilian petrochemicals company Braskem (NYSE: BAK) posted net losses of 58mn reais (US$20.4mn) for the third quarter of 2003, the company said in a statement. The losses were largely due to financial expenses originating from exchange rate differences, non-recurring expenses and amortization of premiums paid in the formation of the company in August 2002. Losses totaled 1.4bn reais in 3Q02. Net profits reached 411mn reais for the first nine months this year, turning round losses of 1.84bn reais in the same period 2002. Net revenues increased 36% 6.65bn reais over the period. Third quarter revenues of 2.2bn reais were about the same as 3Q02. Braskem's EBITDA totaled 367mn reais in Q3, up 26% from the same period in 2002. The increase was due from the realignment of thermoplastic resins prices on the domestic market, reduction of expenses and synergies from integration of assets, the company said. Braskem has obtained 260mn reais in synergies as of September 30, or 80% of the 330mn targets set out when the company was formed last year.