From the Newsroom
São Paulo – Exports by Randon were up 11% in Q2 2016 from Q2 2015, it said this Thursday (11) after stock markets had closed. Foreign trade numbers increased while gross and net income slid, as did domestic revenues.
Randon grossed USD 42 million from international trade from April to June, up from USD 38 million in the comparable period of last year. In real, the Brazilian currency, the year-on-year increase was higher at 28%, going from BRL 117 million to BRL 150 million. Exports went from 16% of revenue in Q2 2015 to 21.5% in Q2 2016.
In the first half, foreign sales revenues dropped 4.4% in US dollars but climbed 16% in real. The Middle East’s share of total exports remained the same at 4%. Oceania’s and Europe’s shares were 1% and 2%.
Sales increased from 29% to 34% to the NAFTA countries, 9% to 11% to South and Central America, and 1% to 2% to Asia. H1 revenues from exports to the Mercosur and Chile dropped from 41% to 39%, and from 14% to 8% to Africa. Despite the reduction, Mercosur and Chile were the top buyers.
On releasing its results, Randon stressed the issues it faced in Africa in the last few months. “Sales to the African continent remained an issue in this quarter due to reasons outlined previously, in Q1 2016, namely the cheap oil and economic problems in some of the countries,” it said. Randon imputed the drop in sales to Mercosur countries and Chile to commodity prices and recession in Brazil, on which the region is dependent.
But the conglomerate asserted that its efforts to increase foreign sales are ongoing, with projects underway to resume business in several countries, and feasibility studies for increasing CKD exports. Randon has manufacturing units in countries other than Brazil that grossed it USD 60 million in sales in H1, down from USD 71.7 million in H1 2015. In Cairo, the capital of Egypt, Randon runs an assembly unit in partnership with a local company.
Randon is a conglomerate of vehicles, trailers and semi-trailers, auto parts, and financial services companies. It saw net income drop 5.2% in Q2 from a year ago to BRL 697 million. Gross income fell 3.1% to 984 million. Net income went up from BRL 300,000 in Q2 2015 to BRL 6.9 million in Q2 2016.
*Translated by Gabriel Pomerancblum