Brazil Unipar Q2 gross profit falls 11% from Q1 on higher costs

12 August 2010 17:34  [Source: ICIS news]

HOUSTON (ICIS)--Brazilian chlor-alkali producer Unipar Participacoes reported on Thursday a second-quarter gross profit of reais (R) 27.4m, ($15m, €12m) down 11% from R30.9m reported for the first quarter, as rising costs outpaced sales.

Unipar said it did not release a year-over-year comparison of its second-quarter performance because of its massive divestments made earlier in the year.

Unipar received R700m in proceeds from its sale to Braskem of its stake in Quattor as well as its businesses Unipar Comercial and Polibutenos.

The divestments would distort year-over-year comparisons, Unipar said.

Net revenues rose 7% quarter over quarter to R81.5m, Unipar said. The company attributed the increase to higher global prices for caustic soda.

In fact, second-quarter exports for all products - including caustic soda - reached R11.6m, up 85% from the first quarter.

Domestic sales fell slightly to R92.5m.

Cost of sales was R54.1m, up 20% from the first quarter.

Unipar attributed the increase to planned shutdowns by customers. Such shutdowns made it more difficult for Unipar to optimise chlor-alkali production levels, the company said.

Unipar said the outlook remained strong, with domestic demand for caustic soda and chlorine remaining firm for the rest of the year.

Earlier this week, fuel distributor and chemical producer Ultrapar Participacoes also gave an upbeat outlook of the Brazilian economy.

($1 = R1.77)
($1 = €0.78)

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By: Al Greenwood
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