CVRD posts second best quarterly earnings

Brazilian mining giant CVRD has beaten market forecasts to post 1.28bn reais (US$441mn) consolidated net earnings for the third quarter, against a year-earlier loss of 216mn reais. The result is CVRD's second best quarterly performance. Cristiane Viana, an analyst from Portuguese bank BES, had forecast 961mn reais profits. But Paolo di Sora, an analyst from local bank Itau, told BNamericas that the results were in line with his forecasts. "CVRD benefited from stronger volumes and higher iron ore prices. Gross income improved by 24% quarter-over-quarter," he said. Ebitda for the quarter totaled 1.51bn reais, 34% higher than 3Q02 and the company's best quarterly result. Ebitda margin in 3Q03 also set a new record at 56.2%, Gross operating revenue rose 25.4% to 2.78bn reais in the same comparison with the sale of 40.3Mt of iron ore. For the first nine months of the year net profit came in at 3.72bn reais, a hefty 640% rise from the 502mn reais in the same period of 2002. Gross revenue increased 29.5% to 7.49bn reais between January and September, while export revenue totaled 2.74bn reais. In the first nine months of 2003, Ebitda amounted to 3.64bn reais, compared to 2.62bn reais in the same period a year earlier. Exports for the first nine months totaled US$2.4bn and US$994mn for 3Q03. Net equity stood at 14.5bn reais at the end of September. CVRD (NYSE: RIO) is the world's largest iron ore producer and exporter.