Votorantim posts increased earnings on improved performance

Brazil's Votorantim Industrial posted an 18% increase in Q2 net income to 608mn reais (US$175mn) from 514mn reais in 2Q14, as a result of an improved operating performance.

Net revenue rose to 7.80bn reais, up 17% from 6.65bn reais and a second quarter record, the company said in its quarterly earnings release.

Adjusted Ebitda was up 22% to 1.81bn reais, mostly due to improved metals prices in Brazilian reais, higher margins from the sale of surplus energy and tight control over SG&A expenses in all operations, the company said. The Ebitda margin increased to 23.2% from 22.3%.

In the metals division, zinc sales volume decreased 3% to 171,600t in the quarter. Nickel sales volumes of 278,000t were 10% higher, thanks especially to exports. Aluminum sales volume fell 13% to 70,000t.

Long steel sales volume dropped 2% to 456,000t, while steel segment Ebitda totaled 128mn reais, up 6% from 121mn reais.

Capex in 2Q15 totaled 610mn reais, with 50% earmarked for expansion projects and 50% going to maintenance, modernization, safety, health and the environment.

"Expansion projects absorbed 50% of total investments and were focused on cement, which in turn accounted for 87% of total expansion investments," Votorantim said in the release.