Brazil's Votorantim posts loss hit by lockdown in Peru
14/08/2020 21:13
SAO PAULO, Aug 14 (Reuters) - Votorantim SA, one of Brazil's
biggest diversified holding companies, posted a second-quarter
net loss of 645 million reais ($118.88 million), hit by
coronavirus lockdowns in Peru and impairment charges.
The company had posted a net income of 225 million reais a
year earlier.
Isolation measures imposed to curb the coronavirus pandemic
nearly halted operations of mining company Nexa Resources in
Peru, helping reduce Votorantim's revenues by 4% from a year
earlier, to 7.6 billion reais.
Chief Financial Officer Sergio Malacrida said Nexa is slowly
resuming operations in Peru, but he could not anticipate when it
will be fully operating.
It took a nearly 270 million reais impairment charge for
reduced cash generation expectations for its cement plants in
Turkey and Bolivia.
On the other hand, Votorantim's orange juice unit Citrosuco,
aluminum company CBA and cement operations in Brazil and in the
U.S are having a good performance, despite the crisis.
"I see that results are likely to improve by year end, but
the scenario there still is a huge amount of uncertainty in the
way," Malacrida said.
Votorantim's net debt ended June at 17 billion reais. This
is equivalent to 3.92 times adjusted earnings before interest,
taxes, depreciation and amortization (EBITDA), up from 3.55
times in March.
Even amid the unclear environment, Malacrida said Votorantim
continues to seek investment opportunities. The holding is
interested in sanitation assets and may seek partners to do some
investments.
A new law passed in June is expected to prompt states and
municipalities to privatize water and sewage companies and to
universalize services in Brazil, luring more than 600 billion
reais in investments.
($1 = 5.4257 reais)
(Reporting by Carolina Mandl
Editing by Alistair Bell)
((carolina.mandl@thomsonreuters.com; +55 11 5644 7703; +55 11
97116-3806;))