Increase in Q2 sales volume at Brazilian nonwovens producer
August 16, 2012 - Brazil
Companhia Providência announces its second quarter results for 2012 (2Q12). Compared with the same period in 2011, net revenue reported growth of 19.1% reaching R$ 151.0 million while EBITDA rose 55.8%, ending the quarter at R$ 28.2 million. Net income also posted a significant advance and registered an increase of 237.1% against 2Q11 results. Sales volume also registered growth with a total of 24.6 tons, a rise of 11.6% when compared with the same period in 2011.
“The Company’s good results during the period owe much to the increase in sales volume as well as the utilization of our production capacity close to its ceiling at our first line in the United States, output here having been gradually ramped up during the course of 2011”, Hermínio de Freitas, Companhia Providência’s CEO points out.
“With the startup of the second production line at the Pouso Alegre (MG) plant in June of this year, we have added further annual capacity of 20 thousand tons to company output. Again, the U.S. expansion project in Statesville (NC), where the Company’s 13th production line will go into operation during the fourth quarter, will grow our output by a another 20 tons annually, doubling capacity in the United States”, Freitas notes.
Eduardo Feldmann, the Company’s CFO emphasized “The investments are principally driven by maintenance requirements and by the strategy of growth, modernization and the increase in the productive capacity of our industrial complex. During the quarter alone, we spent more than R$ 17 million on nonwovens machinery and construction totaling in the year R$ 75 million. Our second production line in Pouso Alegre should reach full capacity during 4Q12 and we shall be unveiling our second line in the United States, thus ramping up total production capacity to 140 thousand tons/year. These additions will serve to further strengthen our company, consolidating Providência as one of the largest players in the market”.
Founded in 1963, Companhia Providência is a leader in the manufacture and sale of nonwovens in Brazil with a significant presence in the Americas and operating globally. With economic solidity and 49 years of existence, Providência prides itself on the quality of its products and respect for its clients, suppliers, employees and shareholders.
“The Company’s good results during the period owe much to the increase in sales volume as well as the utilization of our production capacity close to its ceiling at our first line in the United States, output here having been gradually ramped up during the course of 2011”, Hermínio de Freitas, Companhia Providência’s CEO points out.
“With the startup of the second production line at the Pouso Alegre (MG) plant in June of this year, we have added further annual capacity of 20 thousand tons to company output. Again, the U.S. expansion project in Statesville (NC), where the Company’s 13th production line will go into operation during the fourth quarter, will grow our output by a another 20 tons annually, doubling capacity in the United States”, Freitas notes.
Eduardo Feldmann, the Company’s CFO emphasized “The investments are principally driven by maintenance requirements and by the strategy of growth, modernization and the increase in the productive capacity of our industrial complex. During the quarter alone, we spent more than R$ 17 million on nonwovens machinery and construction totaling in the year R$ 75 million. Our second production line in Pouso Alegre should reach full capacity during 4Q12 and we shall be unveiling our second line in the United States, thus ramping up total production capacity to 140 thousand tons/year. These additions will serve to further strengthen our company, consolidating Providência as one of the largest players in the market”.
Founded in 1963, Companhia Providência is a leader in the manufacture and sale of nonwovens in Brazil with a significant presence in the Americas and operating globally. With economic solidity and 49 years of existence, Providência prides itself on the quality of its products and respect for its clients, suppliers, employees and shareholders.