São Paulo – The Brazilian bus manufacturer Marcopolo expanded its production in Egypt in 50.8% in the first semester this year. In all, 294 buses were manufacturer, against 195 unities in the same period of 2014, according to data released this Monday (3rd) by the company. The company has a 49% share in a joint-venture with Egyptian company Ghabbour Auto.
The percentage increase was even higher in the quarterly comparison. From April to June of this year, the Egyptian company manufactured 163 unities. In the same period of 2014, 80 unities were manufactured. It was a 104% increase.
According to a press release by Marcopolo, the performance abroad was one of the highlights of the first semester. Exports and operations in other countries brought profits of R$ 626.8 million (US$ 180 million), an amount 26.9% higher than the one registered in the same period of 2014.
On the other hand, the company’s domestic operation profited R$ 666.3 million (US$ 191.39 million) in the first semester, a 37.8% decline in the same comparison. The company said it’s looking to increase efficiency and cost reduction to face the “restricted” demand environment of the Brazilian market.
Overall, Marcopolo posted lower revenues in Q2 of this year and also from January to June in comparison to the same time periods of last year, according to the balance sheet.
The company profited R$ 636.6 million (US$ 182.86 million) in Q2 of this year, a decline of 22.8% over the same period in 2014. From January to June, total revenues totaled R$ 1.293 billion (US$ 371 million), 17.4% less than 2014’s first six months.
The first semester’s net profit stood at R$ 71.2 million (US$ 20.45) against R$ 104.6 million (US$ 30 million) in the same period of 2014, a decline of 32%.
Total production by the companies controlled by Marcolopo totaled 6,167 unities, from which 4,966 were manufactured in Brazil, with 1,201 being made abroad.
With the production of all subsidiaries in which Marcopolo is a major shareholder or has a minority stake added all together, total production reached 11,468 unities from January to June. In the same period of last year, 12,751 vehicles were manufactured. In this calculation are included the buses manufactured in the Egypt and India plants, in which the company has a 49% share.
The company’s stocks closed down on the trading floor this Tuesday (4th) at the São Paulo Stock Exchange (Bovespa). Common stock (with voting rights) closed the day at R$ 1.94 (US$ 0.557), a decline of 0.51% over the previous day. Meanwhile, preferred shares closed at R$ 2.26 (US$ 0.649), a 1.31% decline.
*Translated by Sérgio Kakitani
