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Votorantim’s Brazilian business drags down results

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World Cement,

Votorantim reported a year-on-year fall in earnings in 3Q17 on the back of poor performance from the company’s Brazilian business. Other areas faired more positively but failed to offset the weakness in the company’s home market.

Earnings stood at BRL521 million in 3Q17, a 27.1% drop on the same period last year, driven by a 45.4% fall in like-for-like earnings in Brazil. The weakness in the Brazilian market was exacerbated by a BRL143 million tax adjustment.

In contrast, Votorantim’s North American reported a 12.7% increase in earnings on strong market positioning and operational efficiency in both Canada and the UK. In Europe, Asia and Africa, Votorantim reported a 13.7% increase in earnings on the back of strong results in Morocco, higher sales volumes in Turkey, and an upturn in India and China.

The stand-out performance came in the company’s Latin American business, where earnings rose by 63.8% year on year due to the ramp-up and better-than-expected operational performance of its Bolivian plant. Sales volumes from the plant were “considerably higher,” the company said “due to an increased local market share in Bolivia, and exports to Argentina”.

Exports from Votorantim’s Uruguayan plant also saw increased exports to Argentine.

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