São Paulo – The share of Randon-group owned Brazilian auto parts manufacturing company Fras-le’s exports that went to the Middle East has increased. According to figures issued last week by the company, the Middle East’s share of foreign sales by Fras-le went from 3.2% in the first nine months of last year to 4% in the same period this year. Africa, another region where there are Arab countries, accounted for 5.7% of sales this year and 4.8% in 2010, another increase.
Last Friday (4th), at a press conference with investors and journalists, company executives were extremely pleased with the company’s foreign sales performance, as well as the performance of its units in China and the United States. “Aside from an increase in revenues posted by our units abroad, in China and the United States, we are managing to increase our exports from Brazil,” said the company director, Daniel Raul Randon. Foreign revenues (exports and foreign units) reached US$ 112 million, as against US$ 94.2 million in the same period last year, a 19% increase.
Export-only revenues stood at US$ 86.7 million from January to September, 10.6% more than in the same period of 2010. In the third quarter, foreign sales stood at US$ 25 million, a 1.7% decline over the same period of 2010. The decline, according to Randon, is due to the fact that revenues do not include products awaiting shipping at ports, but still he celebrated the export performance, because the auto parts industry’s trade balance should run a US$ 4 billion deficit this year.
The leading foreign market for Fras-le is the North American Free Trade Agreement (Nafta), a bloc comprised of the United States, Mexico and Canada. The region accounted for 62.1% of the company’s exports, followed by South America, at 17.6%, Europe, at 6.4%, Africa, at 5.7%, the Middle East, at 4%, Central America and the Caribbean, at 2.1%, and Asia and Oceania, at 1.9%. Other smaller markets accounted for 0.2%. The Nafta’s share declined, from a previous 64.2%. Europe’s share also declined, as against 7.1% in the first nine months of last year.
According to the Investor Relations manager at Fras-le, Jorge Roberto Gomes, the company has managed to increase its prices to customers, in some cases since October, and that should impact on upcoming results. According to him, there is room for further increases. Fras-le is also maintaining its investment in manufacturing capacity in Brazil and abroad, according to Gomes. The company promised to remain attentive to economic policies, especially in Europe and the USA, which are experiencing crises.
In the first nine months of the year, Fras-le posted gross revenues of 562.5 million reais (US$ ), 9.1% more than in the same period of 2010. Consolidated gross revenues stood at 408.5 million reais (US$ ), 8.4% more, and Ebitda stood at 50.9 million reais (US$ ), a decline of 16.7%. Consolidated gross profit dropped by 10.2% to 105 million reais (US$ ), and consolidated net profit dropped by 5.7% to 34.7 million reais (US$ ).
In the third quarter, as against the same period of last year, revenues also increased (overall gross revenues stood at 183 million reais, or US$, a 5.1% increase) and profit dropped (consolidated gross profit stood at 33.8 million reais, or US$ , a 7.1% decline).
The company is headquartered in the city of Caxias do Sul, in the state of Rio Grande do Sul, and has over 250,000 employees, and manufactures friction materials. Parts include clutch facings, brake linings, brake pads, and brake shoes for various types of vehicles. The company supplies automakers and the replacement market in Brazil and abroad.
*Translated by Gabriel Pomerancblum
