Votorantim profit rises on asset sales

Reuters are reporting that profit at Votorantim SA rose in 1Q16 as gains from asset sales and robust results at pulpmaker Fibria SA offset the impact of Brazil's recession on the company.

Net income totalled 144 million reais last quarter, up from 68 million reais a year earlier. The group reversed a loss of 219 million reais in the preceding quarter.

Votorantim tried to prioritise cash generation amid economic and political turmoil in Brazil. Cash rose 26% from a year earlier, while debt denominated in Brazilian reais continued to fall during the quarter.

Over the past decade, Votorantim expanded across Latin America and Europe to broaden the group's client base in sectors like cement and mining while curbing revenue dependence on Brazil. Profit has fallen 20% in the 12 months through March as asset writedowns and higher taxes offset otherwise resilient revenue outside Brazil.

Net debt rose to 2.87% of 12-month trailing EBITDA at the end of March.

Edited from source by Joseph Green. Source: Reuters

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