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

 RIO DE JANEIRO, Brazil, May 17 /PRNewswire/ -- Aracruz Celulose S.A. (NYSE: ARA) announced today its financial results stated in U.S. GAAP for the first three months of 1993. To account for Brazilian inflation, such information is stated in constant Cruzeiros of March 31, 1993 purchasing power.
 Net operating revenues were Cr$2,216 billion in the first quarter of 1993. For all of fiscal year 1992, net operating revenues were Cr$12,597 billion. (See Note.)
 Operating loss for the three months ended March 31, 1993 was Cr$474 billion. This was mainly due to reductions in international pulp prices. For fiscal year 1992, the company reported an operating income of Cr$2,574 billion.
 For the first three months of 1993, the company reported net losses of Cr$44 billion or Cr$81.93 per Class B share. For fiscal year 1992, net income was Cr$537 billion or Cr$867.11 per share of Class B stock. Each ADS represents five Class B shares.
 Net debt at March 31, 1993 was Cr$21,748 billion a 15 percent decrease from March 31, 1992.
 In the first quarter of 1993, the company produced 237,000 tonnes of bleached eucalyptus pulp, a decrease in production of 11 percent as compared to the first quarter of 1992. Pulp sales in the first quarter of 1993 were 217,000 tonnes, of which 192,000 tonnes or 88 percent were export sales. In the first quarter of 1992, pulp sales for the company were 248,000 tonnes, of which 87 percent were export sales. For fiscal year 1992, production and sales were 1,013,000 tonnes and 964,000 tonnes (87 percent export sales), respectively.
 Mr. Mauro Molchansky, chief financial officer, stated, "Although working in a very difficult market environment, the company has achieved significant results in reducing net financing costs. We expect a material reduction in operating costs and expenses during 1993 as a result of our cost reduction and productivity program. Aracruz also realized positive effects during the quarter from exemption from the V.A.T. on exports."
 In March 1993, the company recorded provisions for loss aggregating Cr$183,111 million relating to the intended sale of machinery used in a discontinued chemical process and of miscellaneous construction materials.
 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 total effect on the company's financial statements of adopting SFAS No. 109 was to increase income by Cr$959,578 million for the three months ended March 31, 1993, including Cr$490,245 million of previously unrecorded deferred-tax benefits from tax-loss carryforwards incurred by the company, recognized at Jan. 1, 1993.
 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.
 NOTE: Prior to the 1993 first quarter, financial results determined according to U.S. GAAP are available only for the full year-end periods from 1987, and the six and nine month periods ended June 30 and Sept. 30, 1992, respectively. Therefore, results for year-end 1992 are presented here.
 The company has, in conjunction with this announcement, publicly released in Brazil its first three months financial results, stated in Brazilian GAAP. Under those accounting principles, Aracruz reported a 1993 first three months profit of Cr$520.2 billion, or Cr$965.61 per share. For the first quarter of 1992, the company had a loss of Cr$328.3 billion or Cr$826.77 per share.
 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 March 31, 1993 except per share amounts)
 Unaudited
 Year ended Quarter ended
 Dec. 31, 1992 March 31, 1993
 Cr$ Cr$
 Operating revenues:
 Sales of eucalyptus pulp:
 Domestic 1,807,439 313,562
 Export 12,281,759 2,065,833
 Total 14,089,198 2,379,395
 Value-added tax and other sales
 deductions 1,492,262 162,923
 Net operating revenues 12,596,936 2,216,472
 Operating costs and expenses:
 Cost of sales 7,901,097 2,038,546
 Selling expenses 733,338 157,440
 Administrative expenses 1,129,776 379,175
 Other 258,913 114,938
 Total 10,023,124 2,690,099
 Operating (loss) income 2,573,812 (473,627)
 Other income (expenses):
 Financial income 4,294,811 1,691,811
 Financing expense (36,128,951) (7,067,460)
 Foreign-exchange loss, net (27,686,685) (9,048,670)
 Purchasing-power gain, net 57,592,264 14,264,776
 Other (28,094) (203,215)
 Total (1,956,655) (362,758)
 (Loss) income before income taxes,
 extraordinary item and cumulative
 effect of change in accounting
 principle 617,157 (836,385)
 Income taxes:
 Current 121,610 160,468
 Deferred 347,695 (462,469)
 Total 469,305 (302,001)
 Loss before extraordinary item and
 cumulative effect of change in
 accounting principle 147,852 (534,384)
 Extraordinary item-recognition of
 tax-loss carryforwards 389,273 --
 Income (loss) before cumulative
 effect of change in accounting
 principle 537,125 (534,384)
 Cumulative effect of change in
 accounting principle -- 490,245
 Net (loss) income 537,125 (44,139)
 ARACRUZ CELULOSE S.A.
 Condensed Consolidated Statements of Operations (Continued)
 (Prepared in Accordance with U.S. GAAP) (Adjusted for price-level changes and expressed in millions of constant
 Brazilian cruzeiros of March 31, 1993, except per-share amounts)
 Earnings (loss) per share: Preferred Common
 Class A Class B
 Cr$ Cr$ Cr$
 Year Ended Dec. 31, 1992
 Before extraordinary item 1,694.19 85.08 85.08
 Extraordinary item 782.01 782.03 782.03
 Net income 2,476.20 867.11 867.11
 Quarter Ended March 31, 1993 (unaudited)
 Before cumulative effect of change
 in accounting principle (991.99) (991.99) (991.99)
 Cumulative effect of change in
 accounting principle 910.06 910.06 910.06
 Net (loss) (81.93) (81.93) (81.93)
 -0- 5/17/93
 /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, for Aracruz Celulose S.A./
 (ARA)


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

WB -- NY060 -- 9186 05/17/93 12:11 EDT
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