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ARACRUZ CELULOSE REPORTS 1993 FIRST HALF RESULTS IN U.S. GAAP

 RIO DE JANEIRO, Aug. 16 /PRNewswire/ -- Aracruz Celulose S.A. (NYSE: ARA) announced today its financial results stated in U.S. GAAP for the first six months of 1993. To account for Brazilian inflation, such information is stated in constant Cruzeiros of June 30, 1993 purchasing power.
 Net operating revenues were Cr$9,857 billion in the first half of 1993. For the first half of 1992, net operating revenues were Cr$13,041 billion.
 Operating loss for the six months ended June 30, 1993 was Cr$791 billion. This was mainly due to continued reduction in international pulp prices. For the corresponding period in 1992, the company reported an operating income of Cr$2,455 billion.
 For the first half of 1993, the company reported net loss of Cr$907 billion or Cr$2,261 per Class B share. For the first half of 1992, net loss was Cr$367 billion or Cr$1,377 per share of Class B stock. Each ADS represents five class B shares.
 In the first six months of 1993, the company produced 489,000 tons of bleached eucalyptus pulp, a decrease in production of 3 percent as compared to the first six months of 1992. Pulp sales in the first half of 1993 were 457,000 tons, of which 409,000 tons or 89 percent were export sales. In the first half of 1992, pulp sales for the company were 474,000 tons, of which 86 percent were export sales. For fiscal year 1992, production and sales were 1,013,000 tons and 964,000 tons (87 percent export sales), respectively.
 Sales deductions were Cr$665 billion in the first half of 1993, a reduction of 63 percent as compared to the prior year period, mainly due to the reduction from 9.1 percent to zero of the V.A.T. on exports.
 Net financing expense for the six months ended June 30, 1993 was Cr$23,631 billion, 48 percent below the same period of 1992, as the company paid down its most expensive debt with the net proceeds of the 1992 equity offering and realized a material reduction in its weighted average cost of debt.
 The company has implemented a cost reduction and productivity program and expects reductions in operating costs and expenses during 1993. Major results to date includes substantial manpower reduction, renegotiation of important suppliers' contracts and the merger of a principal subsidiary, Aracruz Florestal into its parent, Aracruz Celulose. The company will continue its cost reduction and productivity program through the remainder of 1993 and into 1994.
 During the first six months of 1993, the company recorded provisions for loss aggregating Cr$340,596 million relating to the intended sale of machinery used in a discontinued chemical process and of miscellaneous construction materials.
 As stated in the company's first quarter press release, effective Jan. 1, 1993, the company adopted Statement of Financial Accounting Standards (SFAS) No. 109, "Accounting for Income Taxes." This statement supersedes Opinion No. 11 of the Accounting Principals Board, which the company had previously adopted. The cumulative effect for the six months ended June 30, 1993 on the company's financial statements of adopting SFAS No. 109 was to increase income by Cr$1,960,540 million.
 On July 22, 1993 the company issued in foreign markets US$80 million of 9 percent unsecured bonds maturing in 1998. The net proceeds of approximately US$79.2 million will be generally used by the company to refinance certain of its outstanding debt as and when such debt becomes due during 1993.
 Aracruz also announced the resignation of Mr. Alexandre Yambanis, commercial officer. Mr. Yambanis has accepted a new position in the pulp industry that will be announced shortly, and will leave the company on Sept. 3. A permanent or temporary replacement for the position of commercial officer will be announced by Aracruz by Sept. 3.
 Aracruz Celulose S.A., headquartered in Rio de Janeiro with its production operations in the coastal state of Espirito Santo, is the world's largest producer of bleached eucalyptus kraft market pulp. Eucalyptus pulp is a high-quality hardwood pulp used by paper manufacturers to produce a wide range of products, including premium tissue, printing and writing papers, liquid packaging board and specialty papers. Aracruz is the first Brazilian company to list on the New York Stock Exchange. Its shares trade under the symbol "ARA".
 ARACRUZ CELULOSE S.A.
 Condensed Consolidated Statements of Operations
 (Prepared in accordance with U.S. GAAP)
 Adjusted for price-level changes and expressed in millions
 of constant Brazilian cruzeiros of June 30, 1993
 except per share amounts)
 Six months ended June 30 1992 1993
 (Unaudited) (Unaudited)
 Cr$ Cr$
 Operating Revenues:
 Sales of eucalyptus pulp:
 Domestic $2,096,214 $1,260,209
 Export 12,718,800 9,261,083
 Total 14,815,014 10,521,292
 Value-added tax and other
 sales deductions 1,774,072 664,733
 Net operating revenues 13,040,942 9,856,559
 Operating Costs and Expenses:
 Cost of sales 8,028,470 8,075,656
 Selling expenses 749,096 727,205
 Administrative expenses 1,521,886 1,537,014
 Other 286,837 307,376
 Total 10,586,289 10,647,251
 Operating income (loss): 2,454,653 (790,692)
 Other income (expenses):
 Financial income 757,663 1,675,799
 Financing expense (46,567,613) (25,307,269)
 Foreign-exchange loss, net (25,097,625) (40,638,086)
 Purchasing-power gain, net 68,107,536 63,039,264
 Other 64,929 (481,013)
 Total (2,735,110) (1,711,305)
 Loss before income taxes,
 and cumulative effect of
 change in accounting principle (280,457) (2,501,997)
 Income taxes:
 Current 86,482 345,071
 Deferred -- (900,281)
 Total 86,482 (555,210)
 Loss before cumulative effect
 of change in accounting principle (366,939) (1,946,787)
 Cumulative effect of change
 in accounting principle -- (1,040,171)
 Net loss (366,939) (906,616)
 ARACRUZ CELULOSE S.A.
 Condensed Consolidated Statements of Operations
 (Prepared in Accordance With U.S. GAAP)
 (Adjusted for price-level changes and expressed in millions
 of constant Brazilian cruzeiros of June 30, 1993,
 except per-share amounts)
 Earnings (loss) per share: Preferred Common
 Class A Class B
 Cr$ Cr$ Cr$
 Six Months Ended June 30, 1992 2,595.25 (1,377.10) (1,377.10)
 Six Months Ended June 30, 1993:
 Before cumulative effect of change
 in accounting principle 582.47 (4,191.88) (4,191.88)
 Cumulative effect of change in
 accounting principle 1,930.90 1,930.90 1,930.90
 Net earnings (loss) 2,513.37 (2,260.98) (2,260.98)
 See independent accountants' review report and notes to condensed consolidated financial statements.
 Supplement Information
 The company will also issue, as information supplemental to its primary U.S. GAAP financial statements stated in Brazilian price-level adjusted cruzeiros, condensed consolidated U.S. GAAP financial statements stated in U.S. dollars. Such supplemental financial statements have been remeasured from Brazilian cruzeiro amounts stated in the company's statutory accounting records to U.S. dollar amounts in accordance with the standards set forth in Statement of Financial Accounting Standards No. 52.
 The condensed consolidated financial statements as stated in U.S. dollars have been prepared for additional analysis to be read in conjunction with the primary condensed consolidated financial statements stated in Brazilian price-level adjusted cruzeiros and should not be relied on as an alternative to the company's primary U.S. GAAP financial statements.
 ARACRUZ CELULOSE S.A. AND SUBSIDIARIES
 Condensed Consolidated Statements of Operations
 (Prepared in Accordance with SFAS 52)
 (Unaudited, expressed in thousands of U.S. dollars)
 Six months ended June 30 1992 1993
 Operating revenues:
 Sales of eucalypcus pulp:
 Domestic $37,693 $23,213
 Export 211,922 154,163
 Total 249,615 177,376
 Value-added tax and other sales
 deductions 30,683 11,058
 Net operating revenues 218,932 166,318
 Operating costs and expenses:
 Cost of sales 132,481 128,806
 Selling expenses 16,397 11,996
 Administrative expenses 24,570 23,276
 Other 4,521 4,894
 Total 177,969 168,972
 Operating income (loss): 40,963 (2,654)
 Other income (expenses):
 Financial income 5,340 15,726
 Financial expense (81,775) (41,863)
 Gains (losses) from currency
 remeasurement and transactions, net (56,741) 2,364
 Other 782 (9,391)
 Total (132,394) (33,164)
 Loss before income taxes & cumulative
 effect of change in acctg. principle (91,431) (35,818)
 Income taxes 1,095 (10,159)
 Loss before cumulative effect of
 change in accounting principle (92,526) (25,659)
 Cumulative effect of change in
 accounting principle -- (19,305)
 Net loss (92,526) (6,354)
 -0- 8/16/93
 /NOTE TO EDITORS: The company has, in conjunction with this announcement, publicly released in Brazil its first six months financial results, stated in Brazilian GAAP. Under those accounting principles, Aracruz reported a 1993 first half profit of Cr$565 billion, or Cr$1,048.37 per share. For the first half of 1992, the company had a profit of Cr$160 billion or Cr$296.91 per share.
 The exchange rate reported for June 30, 1993 was Cr$54,336.00 equals US$1.00.
 /CONTACT: Mauro Molchansky, chief financial officer of Aracruz Celulose S.A., 011-55-21-541-8194, or Steven Kennedy or Corey Cutler of Dewe Rogerson Inc., 212-688-6840/
 (ARA)


CO: Aracruz Celulose S.A. ST: IN: PAP SU: ERN

TS-OP -- NY047 -- 3045 08/16/93 11:50 EDT
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