MBR posts Q2 earnings of US$43mn

Brazilian iron ore producer MBR posted a net profit of 130mn reais (currently US$42.6mn) for the second quarter, turning around net losses of 140mn reais registered in 2Q02. The mining company's net revenue for the quarter totaled 443mn reais, up 65% from 269mn reais for the same period in 2002. Ebitda reached 156mn reais from 81.9mn reais in the same comparison. Sales volumes rose to 9.9Mt in Q2, from 7.8Mt in the year-ago quarter. MBR's strong performance helped the results of its parent company, Rio de Janeiro-based Caemi. The holding company posted a net profit of 126mn reais in the second quarter, compared to a loss of 49.6mn reais reported in 2Q02. Caemi's net revenue totaled 575mn reais, up from 361mn reais, in the same comparison, while Ebitda increased 100mn reais to 218mn reais. The parent company's results were positively affected by the growth of sales from its subsidiaries and the effect on dollar-denominated debt of the appreciation of the real against the greenback, Caemi said. Caemi's net debt fell to 238mn in Q2 from 305mn reais in the same period of 2002. The holding company's results from 2002 were adjusted to exclude values from Canadian iron ore mining subsidiary QCM, for which Caemi wrote off losses of 25.5mn reais in June 2002. Caemi's kaolin arm Cadam posted a net profit of 7mn reais, down from 18.6mn in earnings made in 2Q02. The subsidiary's revenue went to 68.5mn reais from 54.4mn reais and Ebitda to 21mn reais from 19.3mn reais in the same comparison. MRS, a railroad concession controlled by Caemi, posted a profit of 22.5mn reais for the second quarter, a change from the 31.2mn loss for 2Q02. The rail company's net revenue totaled 83.8mn reais from 53.3mn reais, and Ebidta went to 37.2mn reais from 17.3mn reais in the same comparison. On April 1, Rio de Janeiro-based mining giant CVRD (NYSE: RIO) announced it had agreed to pay Japanese trading company Mitsui US$277mn for 50% of the common shares and US$150mn for 40% of the preferred stock in Caemi. At present the two have half each of Caemi's voting shares.