Suzano Paper and Pulp Posts 3rd Quarter Results

Oct. 22, 2008 - Suzano Paper and Pulp, one of Latin America's largest pulp and paper producers, announced today consolidated results for the 3rd quarter of 2008.

Net revenue recorded in 3Q2008 reached R 989.7 million (Reais), 1.4% lower than 2Q2008, and 21.3% higher than 3Q2007.

Main Highlights of the 3Q2008:

  • Record market pulp and paper production of 694.7 thousand tons;
  • Record paper sales of 305.7 thousand tons;
  • Pulp prices under pressure in September: US$ 820 / t (CIF Europe), US$ 780 / t in Asia and US$ 845 / t in North America;
  • Pulp cash cost of R$ 453 / ton, excluding the Mucuri maintenance shutdown cost;
  • Record EBITDA: R$ 365 million with a 36.9% margin;
  • Accounting losses of R$ 293 million as a result of the 20.3% currency exchange rate devaluation in the period;
  • Net Debt / EBITDA ratio also affected by the currency exchange rate devaluation on the Dollar denominated debt: 3.38x EBITDA in Sept/08, compared to 3.19x in Jun/08 and 3.74x in Dec/07;
  • Cash availability: R$ 1.7 billion on 09/30/2008;
  • Hardwood pulp inventory levels reach 45 days of supply in August, compared to 40 days in June 2008;
  • New growth cycle announced for the 2008 / 2015 period (please refer to Material Fact published on 07/23/08);
  • Americana industrial unit starts to operate under the consortium model: Consorcio Paulista de Celulose e Papel (Conpacel) on 09/01/2008;
  • Andre Dorf takes office as Strategy and Corporate Development Director on 07/21, and also IR Director as of 09/01; Carlos Anibal Almeida takes office as Paper Business Unit Director on 07/21, and Carlos Griner as Human Resources Director on 09/23.

SOURCE: Suzano Paper and Pulp

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