Fibria Posts Fourth Quarter Loss

In 4Q13, Fibria's pulp production was 1.4 million tons.

Jan. 30, 2014 - Brazilian market pulp producer Fibria today reported that in the fourth quarter 2013 the Company posted losses of R$185 million, compared to profit of R$57 million and R$48 million in 3Q13 and 4Q12, respectively. This variation was chiefly explained by the negative financial result, in turn driven by the impact of dollarís appreciation against the real on debt and the increased expense with income tax and social contribution with adherence to REFIS.

PULP MARKET

In 2013, the pulp market saw new capacity come on-stream, but also saw closures announced throughout the period, representing approximately 1.1 million tons, helping balance the industryís supply (net increase of approximately 515 thousand tons).

On the demand side, there was an increase in eucalyptus pulp shipments in the year, especially to China and North America. Hardwood producersí inventories began falling in August, closing the year at 39 days, in line with the historical average. As a result of these events, the average pulp price in dollars increased 5% as compared to 2012.

PULP PRODUCTION/SALES VOLUME

In 4Q13, pulp production was 1.4 million tons, up 1% quarter-on-quarter due to no scheduled maintenance downtimes, partially offset by the impact of the rains at the Aracruz Unit (ES), which also explains, in large part, the 1% year-on-year decline. Sales volume totaled 1.4 million tons, equivalent to 106% of the production in the quarter, and up 11% over 3Q13 with seasonality in the period, driven by Europe.

In 2013, Fibriaís sales totaled 5.2 million t (98% of period production), down 3% as compared to 2012 when we saw record sales volumes and inventories below 50 days. In addition, availability was reduced as a result of lower production volume. Inventories closed 2013 at 50 days.

Fibria's full fourth quarter 2013 financial and market report is available here:
» Fibria 4Q13 Results (822k, pdf)

SOURCE: Fibria