São Paulo – The Middle East went from a 6% share in the exports of the Randon group in the first semester of last year to 3% this year, according to a balance sheet released by the company on Wednesday (12th) night. The company manufactures vehicles and road implements, railway wagons, autoparts and works with financial services. It’s the largest Latin American manufacturer of trailers and semi-trailers. In the Arab countries, Rondon has operations in Egypt and Algeria, through third-parties manufacturing.
The business group had a decline of 23.6% in dollar exports revenues, from US$ 101.6 million from January to June 2014 to US$ 77.6 million in the same months of this year. Also from April to June there was a decline of 22.1%, from US$ 48.6 million to US$ 37.8 million. But the company pointed out that the performance abroad was better than the domestic one, with revenues declining more, from 33.1% in H1 and 32.4% in Q2, in the latter.
The appreciated dollar benefited sales abroad, according to data from the balance sheet, but the vice-president of Management and Finance of the company, Daniel Randon, reminded, in a talk with investors this Thursday (13th), that in some markets abroad the dollar also is appreciated. Besides, countries in Africa and South America had a downturn in their domestic economies, according to him.
“The real devaluation wasn’t enough to compensate the decline in performance in these markets”, said the Randon’s financial and investors’ relations director, Geraldo Santa Catharina. “Countries to where we exported are also going through economic difficulties”, said the financial director.
Sales to Africa, according to the company, were impacted by the price of ore and oil. “It lowers the potential for investments in these destinations”, said Randon. Africa also lost participation in the company’s exports. It accounted for 17% of external sales in H1 of last year, but now dropped to 12%.
Europe also went from a 5% to a 2% share and Nafta from 34% to 33%. Asia and Oceania remained stable, each with 1%. South and Central America increased their participation, going from 7% to 8%, which also was the case with Mercosur and Chile, from 29% to 40%.
The company registered a decline in almost all of the indicators presented. Gross revenues declined from 30.5% in H1 and 29.4% in Q2, to US$ 2 billion and US$ 1 billion, respectively. The consolidated net profit dropped almost 100% in both time periods and the consolidated Ebitda dropped 66% also in both time periods.
The company’s executives pointed out, in the conference, the low economic confidence in Brazil, but Santa Catharina said that action took by Randon diminished the negative impact of this environment. “One of the worst economic cycles of the last few years”, said the director, citing the inflation hike and unemployment rates. Daniel Randon said that, because of this, the company is strengthening its partnerships abroad and also looking for new ones.
The exports target for the year was reviewed and went from US$ 300 million to US$ 265 million. But the executives said that they expect a bigger impact in international business by the real devaluation against the dollar. They also said that the company should be more adjusted regarding expenses and size (concerning the current economic environment) in H2 of this year. Despite the reviewing down revenues target also, the company will keep the planned investments of R$ 120 million (US$ 34.19 million).
*Translated by Sérgio Kakitani
