11 November 2010 14:13 [Source: ICIS news]
TORONTO (ICIS)--Braskem’s third-quarter net income fell 14% to reais (R) R554m ($320m) from R645m in the 2009 third quarter, largely due to a 9% year-over-year depreciation of the US dollar versus the Brazilian reais, the Brazilian petrochemicals and plastics major said on Thursday.
Since Braskem holds net exposure to the US dollar, any change in the exchange rate impacted its financial results, the company said.
Overall third-quarter net revenues rose to R7.28bn, up 26% from R5.79bn in the 2009 third quarter.
Earnings before interest, tax, depreciation and amortisation (EBITDA) fell 7% to R1.03bn, largely because of a “compression in resin-feedstock margins in the international market” and the appreciation in the reais, the company said.
Third-quarter EBITDA margin was 14.2%, down 5 percentage points from 19.2% in the 2009 third quarter.
Third-quarter operating rates were over 90%, Braskem said.
Going forward, Braskem said it expected to see relatively slower global growth in the current fourth quarter.
However, slower global growth would not affect Braskem’s domestic market in ?xml:namespace>
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