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ARACRUZ CELULOSE REPORTS 1993 NINE MONTHS RESULTS IN U.S. GAAP

 RIO DE JANEIRO, Brazil, Nov. 9 /PRNewswire/ -- Aracruz Celulose S.A. (NYSE: ARA) announced today its financial results stated in U.S. GAAP for the first nine months of 1993. To account for Brazilian inflation, such information is stated in constant Cruzeiros Reais of Sept. 30, 1993 purchasing power.
 Net operating revenues were CR$36,644 million in the first nine months of 1993. For the same period in 1992, net operating revenues were CR$47,396 million.
 Operating loss for the nine months ended Sept. 30, 1993 was CR$2,898 million. 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$10,049 million.
 For the nine month period of 1993, the company reported net loss of CR$5,437 million or CR$11.46 per Class B share. For the first nine months of 1992, net income was CR$3,048 million or CR$5.03 per share of Class B stock. Each ADS represents five Class B shares.
 In the first nine months of 1993, the company produced 740,000 tons of bleached eucalyptus pulp, a decrease in production of 3 percent as compared to the same nine-month period of 1992. Pulp sales in the first nine months of 1993 were 733,000 ton, of which 666,000 tons or 91 percent were export sales. In the same nine month period for 1992, pulp sales for the company were 712,000 tons, of which 87 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$2,675 million in the nine month period ended Sept. 30, 1993, a reduction of 55 percent as compared to the prior year period, mainly due to the reduction of the V.A.T. on exports to zero.
 Over the last two years, Aracruz has instituted a cost reduction and productivity program. Major results to date comprise a substantial manpower reduction, renegotiation of important suppliers' contracts and the merger of Aracruz Florestal into Aracruz Celulose. Through the first nine months of 1993, total cash costs including financing costs decreased by over 20 percent per ton, while total operating cash costs decreased approximately 2 percent per ton as compared to these figures for the same period in 1992. The company remains strongly committed to managing its operating costs closely in order to realize continued reductions in costs.
 Net financing expense for the nine months ended Sept. 30, 1993 was CR$83,003 million, 39 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.
 In March 1993, the company recorded provisions for loss aggregating CR$921 million relating to intended sale of machinery used in a discontinued chemical process and of miscellaneous construction materials. All construction materials were sold by Sept. 30, 1993, and the provision was adequate to cover the loss. The carrying value of the machinery intended for sale at Sept. 30, 1993 was CR$253 million.
 Effective in the third quarter of 1993, the company changed its date of adoption of Statement of Financial Accounting Standards (SFAS) No. 109, "Accounting for Income Taxes," from Jan. 1, 1993 to a period prior to Jan. 1, 1990. The company made the change after analyzing the effects on its financial statements of complying with a consensus of the U.S. Securities and Exchange Commission Emerging Issues Task Force issued in September 1993.
 The company has therefore restated its financial statements for all periods presented, which provides comparable results for each period; the company believes that such presentation is more meaningful than applying the new accounting principles to only the current year. The effect on the company's financial statements of adopting SFAS No. 109 was to reduce net loss for the nine-month periods ended Sept. 30, 1993 by CR$2,877 million; the effect for the prior-year period was to increase net income by CR$2,304 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 are, generally, being used by the company to refinance certain of its outstanding debt as and when such debt becomes due during 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."
 The company has, in conjunction with this announcement, publicly released in Brazil its nine month financial results, stated in Brazilian GAAP. Under those accounting principles, Aracruz reported a 1993 nine month period loss of CR$2,446 million, or CR$4.54 per share. For the same nine month of 1992, the company had a profit of CR$1,135 million or CR$2.11 per share.
 The exchange rate reported for Sept. 30, 1993 was CR$128.07 equals US$1.00
 On Aug. 1, 1993, the denomination of the Brazilian currency was changed from Cruzeiro - Cr$ to Cruzeiro Real - CR$ at the rate of one- thousand Cruzeiros for each Cruzeiro Real.
 SUPPLEMENTAL INFORMATION
 Below the company has supplied as information supplemental to its primary U.S. GAAP financial statements stated in Brazilian price-level adjusted cruzeiros reais. Condensed consolidated U.S. GAAP financial statements stated in U.S. dollars. Such supplemental financial statements have been remeasured from Brazilian cruzeiro reais 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 reais 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,
 Expressed in thousands of U.S. dollars)
 Periods ended Sept. 30 Nine months
 1992 1993
 (Unaudited) (Unaudited)
 US$ US$
 Operating Revenues:
 Sales of eucalyptus pulp:
 Domestic 52,925 32,084
 Export 323,639 244,330
 Total 376,564 276,414
 Value-added tax
 and other sales deductions 43,977 18,558
 Net operating revenues 332,587 257,856
 Operating Costs and Expenses:
 Cost of sales 195,269 198,906
 Selling expenses 20,255 21,441
 Administrative expenses 37,350 33,253
 Other 6,773 7,189
 Total 259,647 260,789
 Operating Income (Loss): 72,940 (2,933)
 Other Income (Expenses):
 Financial income 16,080 21,593
 Financing expense (104,999) (60,303)
 Gains (losses) from currency
 remeasurement and
 transactions, net (61,411) 2,386
 Other 784 (9,780)
 Total (149,546) (46,104)
 Income (Loss) Before Income
 Taxes: (76,606) (49,037)
 Income Taxes:
 Current 2,271 11,149
 Deferred (16,597) (24,574)
 Total (14,326) (13,425)
 Net Income (Loss) (62,280) (35,612)
 ARACRUZ CELULOSE S.A. AND SUBSIDIARIES
 Condensed Consolidated Statements of Operations
 (Adjusted for price-level changes and expressed in millions
 of constant Brazilian cruzeiros reais of Sept. 30, 1993,
 except per-share amounts)
 Periods ended Sept. 30 Nine months
 1992 1993
 (Unaudited) (Unaudited)
 CR$ CR$
 Operating Revenues:
 Sales of eucalyptus pulp:
 Domestic 6,870 4,120
 Export 46,466 35,199
 Total 53,336 39,319
 Value-added tax
 and other sales deductions 5,940 2,675
 Net operating revenues 47,396 36,644
 Operating Costs and Expenses:
 Cost of sales 28,323 30,255
 Selling expenses 2,933 3,125
 Administrative expenses 5,489 5,131
 Other 602 1,031
 Total 37,347 39,542
 Operating Income (Loss): 10,049 (2,898)
 Other Income (Expenses):
 Financial income 10,584 5,199
 Financing expense (146,898) (88,202)
 Foreign-exchange
 loss, net (94,903) (159,424)
 Purchasing-power
 gain, net 222,179 238,933
 Other 79 (1,170)
 Total (8,959) (4,664)
 Income (Loss) Before Income
 Taxes: 1,090 (7,562)
 Income Taxes:
 Current 310 1,478
 Deferred (2,268) (3,603)
 Total 1,958 (2,125)
 Net Income (Loss) 3,048 (5,437)
 ARACRUZ CELULOSE S.A. AND SUBSIDIARIES
 Condensed Consolidated Statements of Operations (Continued)
 (Adjusted for price-level changes and expressed
 in millions of constant Brazilian cruzeiros reais
 of Sept. 30, 1993, except per-share amounts)
 Earnings (Loss) Attributable
 Per Share (Unaudited):)
 Preferred Common
 Class A Class B
 Nine months ended Sept. 30, 1992
 Weighted-average number of
 shares outstanding
 (thousands) 65,674 190,906 227,454
 CR$ CR$ CR$
 Net earnings per share 14.37 5.03 5.03
 Nine-months ended Sept. 30, 1993
 Weighted-average number of
 shares outstanding
 (thousands) 65,216 246,026 227,454
 CR$ CR$ CR$
 Net loss per share (.13) (11.46) (11.46)
 -0- 11/9/93
 /CONTACT: Mauro Molchansky, chief financial officer of Aracruz Celulose S.A., 011-55-21-541-8194, or Steven Kennedy of Dewe Rogerson Inc., 212-688-6840/


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

TM -- NY129 -- 2510 11/09/93 18:54 EST
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Date:Nov 9, 1993
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