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ARACRUZ CELULOSE REPORTS 1992 NINE MONTHS RESULTS IN U.S. GAAP

 ARACRUZ CELULOSE REPORTS 1992 NINE MONTHS RESULTS IN U.S. GAAP
 RIO DE JANEIRO, Brazil, Nov. 4 /PRNewswire/ -- Aracruz Celulose S.A. (NYSE: ARA) announced today its financial results stated in U.S. GAAP for the nine months ended Sept. 30, 1992. To account for Brazilian inflation, such information is stated in constant Cruzeiros of Sept. 30, 1992, purchasing power.
 Net operating revenues were Cr$2,364 billion (US$370 million) in the first nine months of 1992. For all of fiscal year 1991, net operating revenues were Cr$2,044 billion (US$319 million).
 Operating income for the nine months ended Sept. 30, 1992, was Cr$501 billion (US$79 million). For fiscal year 1991, the company reported an operating loss of Cr$123 billion (US$19 million).
 For the first nine months of 1992, the company reported net income of Cr$37 billion (US$6 million), or Cr$13.45 per Class B share (US$0.002 or US$0.01 per ADS). For fiscal year 1991, net losses were Cr$919 billion (US$144 million), or Cr$2,136.98 per share of Class B stock (US$0.33 or US$1.65 per ADS.) Each ADS represents five Class B shares.
 In the third quarter of 1992, the company produced 254,000 tonnes of bleached eucalyptus pulp, an increase in production of 11 percent as compared to the thrd quarter of 1991. The total production through the first nine months of 1992 was 760,000 tonnes, 33 percent more than the amount produced during the same period of 1991.
 Pulp sales in the quarter were 237,000 tonnes, of which 212,000 tonnes or 89.5 percent were export sales. Total sales in the first nine months were 712,000 tonnes, of which 619,000 tonnes or 87 percent were for export. The nine-month sales figure is 32 percent higher than the total sales made in the first nine months of 1991.
 Mauro Molchansky, chief financial officer, stated, "During the third quarter, the company continued to realize the benefits of its increased production capacity, which resulted from an expansion of Aracruz's mill facility that was completed in March of 1991 and reached full capacity in November of that year. The company also benefitted from an increase in pulp prices in recent quarters, and the reduction of VAT rate from 9.1 percent to 4.55 percent on exports, as agreed in July 1992 with the Government of the state of Espirito Santo."
 Total consolidated debt at Sept. 30, 1992, was Cr$6,152 billion (US$961 million), a 7 percent decrease from Dec. 31, 1991. The reduction in debt, made possible by the company's equity offering last June, resulted in lower finance costs. In addition, Aracruz experienced a substantial increase in financial income during the third quarter, that resulted mainly from the benefits of local arbitrage operations involving lower cost U.S. dollar-denominated funding and local investments paying higher real rates. The company also said it received the second drawdown of US$50 million through a loan with NMB that totalled US$100 million, and its subsidiary, Aracruz Trading, contracted a forward start amortizing interest rate swap with J.P. Morgan in the amount of US$112.5 million, with the purpose of protecting that loan from interest rate fluctuations in the future.
 Aracruz Celulose S.A., headquartered in Rio de Janeiro with its production operations in the coastal state of Espirito Santo, is the world's largest producer of bleached eucalyptus kraft market pulp. Eucalyptus pulp is a high-quality hardwood pulp used by paper manufacturers to produce a wide range of products, including premium tissue, printing and writing papers, liquid packaging board and specialty papers. Aracruz is the first Brazilian company to list on the New York Stock Exchange. Its shares trade under the symbol "ARA."
 Notes:
 US$ translations were converted using the exchange rate reported for Sept. 30, 1992, Cr$6,400 equals US$1.00 for the reader's convenience.
 Prior to the 1992 first nine months period, financial results determined according to U.S. GAAP are available only for the full year-end periods from 1987 and six month period ended June 30, 1992. As a result, results for year-end 1991 are presented here.
 The company has, simultaneously with this announcement, publicly released in Brazil its first nine months financial results, stated in Brazilian GAAP. Under those accounting principles, Aracruz reported a 1992 first nine months profit of Cr$58.4 billion, or Cr$108.33 per share.
 ARACRUZ CELULOSE S.A.
 Condensed Consolidated Statement of Operations (A)
 (Prepared in Accordance with U.S. GAAP)
 (Cr$ and US$ million)
 (Unaudited)
 Year ended Nine Months ended
 12/31/91 (B) 9/30/92
 CR$ US$ CR$ US$
 OPERATING REVENUES:
 Sales of eucalyptus
 pulp:
 Domestic 407,300 63 342,639 54
 Export 1,894,874 296 2,317,366 362
 Total 2,302,174 359 2,660,005 416
 VAT and other sales
 deductions 258,010 40 296,241 46
 Net operating rev. 2,044,164 319 2,363,764 370
 OPERATING COSTS/EXPENSES:
 Cost of sales 1,658,595 259 1,412,567 221
 Selling expenses 125,367 19 136,499 21
 Administrative exps. 373,039 58 273,748 43
 Other 10,604 2 39,781 6
 Total 2,167,605 338 1,862,595 291
 OPER. (LOSS) INC. (123,441) (19) 501,169 79
 OTHER INCOME (EXPENSES):
 Financial income 47,540 7 527,835 82
 Financing expense (7,760,506) (1,212) (7,326,200) (1,145)
 Foreign exchange
 (loss), net (2,887,746) (451) (4,733,060) (739)
 Purchasing-power
 gain, net 9,794,365 1,530 11,078,862 1,731
 Other 10,303 1 6,735 1
 Total (796,044) (125) (445,828) (70)
 NET (LOSS) INCOME:
 Before inc. taxes and
 extraordinary items (919,485) (144) 55,341 9
 Income tax/social
 contribution -- -- (80,168) (13)
 Loss before
 extraordinary item (919,485) (144) (24,827) (4)
 Extraordinary items
 recognition of tax-loss
 carryforwards (C) -- -- 61,941 10
 NET (LOSS) INCOME (919,485) (144) 37,114 6
 EARNINGS (LOSS)
 ATTRIBUTABLE PER
 SHARE AFTER
 EXTRAORD. ITEMS (D):
 Class A Stock (1,926.98) (0.30) 479.43 0.07
 Class B Stock (2,136.98) (0.33) 13.45 0.002
 Common Stock (2,136.98) (0.33) 13.45 0.002
 ADS (10,684.90) (1.65) 67.25 0.010
 WEIGHTED AVERAGE
 NUMBER OF SHARES
 OUTSTANDING:
 Class A Stock 66,526,000 65,674,000
 Class B Stock 142,820,000 190,906,000
 Common Stock 227,454,000 227,454,000
 (A) -- Adjusted for price-level changes and expressed in millions of constant Brazilian Cruzeiros of Sept. 30, 1992, purchasing power and millions of United States dollars except per-share amounts.
 (B) -- Cruzeiro information varies from corresponding information in the company's Registration Statement on Form F-1, declared effective May 27, 1992, and is not comparable to previously disclosed financial data due to restatement in constant Cruzeiros of Sept. 30, 1992, purchasing power. U.S. dollar information varies from corresponding information in the Registration Statement and is not comparable to previously disclosed U.S. dollar information due to changes over time in the discrepancy between the Brazilian inflation and the Cruzeiro to U.S. dollar exchange rate.
 (C) -- At Sept. 30, 1992, the company had tax-loss carryforwards of Cr$159 billion with no expiration date, and additional tax-loss carryforwards of Cr$276 billion, which would normally expire in 1997; however, based on management's understanding of a law passed in 1991, such carryforwards may not be subject to expiration. Also at Sept. 30, 1992, the company had accounting-loss carryforwards of Cr$137 billion.
 (D) -- The company has adopted the two-class method for calculating earnings per share. For the nine months ended Sept. 30, 1992, the dividend paid to Class A preference stock exceeded that class's proportionate share of the loss for the period; accordingly, under the two-class method Class A preference shares are presented as having attributed earnings.
 -0- 11/4/92
 /CONTACT: Mauro Molchansky, chief financial officer of Aracruz Celulose, in Brazil, 011-55-21-541-8194; or Steven Kennedy or Corey Cutler of Dewe Rogerson, in New York, 212-688-6840, for Aracruz Celulose/
 (ARA) CO: Aracruz Celulose S.A. ST: IN: PAP SU: ERN


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