Brazil's Oxiteno reports 13% increase in Q2 earnings

12 August 2011 18:45  [Source: ICIS news]

HOUSTON (ICIS)--Brazilian specialty chemicals producer Oxiteno had a 13% increase in second–quarter earnings from the same period last year, corporate parent Ultrapar said on Friday.

The company reported reais (R)80m ($49m, €35m) in earnings before interest, taxes, depreciation and amortisation (EBITDA) for the second quarter compared with R70m in the same period a year ago.

The increase was the result of the recovery in margins over the last 12 months and an improved sales mix, Ultrapar chief financial officer Andre Covre said during the company's second–quarter earnings call.

Net sales for Oxiteno totalled R574m in the second quarter, up 5% from the second quarter of 2010.

Despite the increases in EBITDA and net sales, Oxiteno saw a year–on–year sales volume decrease of 13% in the second quarter, caused mainly by a slowdown in Brazil's economic growth, the company said.

Oxiteno's parent company, Ultrapar, had R215m in net earnings for the second quarter, up 12% year on year, on higher prices and sales volume, the company said.

Net sales for Ultrapar reached R12bn for the second quarter, up 17% from the same period a year ago.

Ultrapar's second–quarter earnings before EBITDA were 8% higher year on year at R503m.

($1 = R1.62) ($1 = €0.70)

By: Bobbie Clark
+1 713 525 2653

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