São Paulo – The Randon group posted a 3.1% decline in export revenues in quarter three, and a 3.5% decline year-to-date through September 30th, according to company figures. Export revenues reached US$ 73.3 million from July to September and US$ 198.6 million year-to-date. The company was affected by weak domestic and foreign demand, and saw its total gross revenues, net revenues, net profit, and Ebitda drop.
Africa, where some Arab countries are located to which the company sells, accounted for 12% of quarter-three exports. The leading foreign markets, however, were the Mercosur countries and Chile, with a 31% share, and the Nafta countries (North America), with 31% as well. Next came South and Central America, with 16%, Africa, and then Europe with 3%. Year-to-date, Mercosur and Chile accounted for 45% of Randon’s exports, the Nafta countries accounted for 32%, Africa accounted for 9%, South and Central America accounted for 6% and Europa accounted for 3%.
The company’s gross revenues were down 18.7% in quarter three, at R$ 1.3 billion, and down 19.7% year-to-date through September 30th, at R$ 3.8 billion. Net revenues reached R$ 877.4 million in quarter three, and R$ 2.4 billion year-to-date, down 18% and 20%, respectively. Consolidated net profit was down 79.5% in quarter three, at R$ 12.9 million, and down 87.7% year-to-date, at R$ 26.9 million. Ebitda was down 41.6% in quarter three, at R$ 79 million, and down 52.8% year-to-date, at R$ 213 million. The company’s Ebitda margin hit 9.1% and was negative by 5.9% year-to-date through September 30th.
In a teleconference this Tuesday (13th), company executives said they expect a recovery in the fourth quarter. “There are signs of an economic pick-up, albeit timid, and that is reflected in customer orders,” said financial director Geraldo Santa Catharina. Customers left some of their quarter-three purchases of trailers on standby waiting for improved conditions for the Finame, a line of credit from the Brazilian Development Bank for purchase of capital goods, and said improvements went into force in late September. According to Santa Catharina, the Finame line accounts for 70% of the financed trailers sold by the company. In October, he says, a large number of vehicles were delivered.
The low rate of growth of the Brazilian Gross Domestic Product (GDP) also affected the group’s entire business, according to figures released by Randon. The company saw its debt rise, because it had to raise working capital due to stalled Finame purchases of trucks, to red tape in wagon financing, and a change in the ERP integrated business management system, which with was implemented this year. But the company is expecting an improvement in 2013 through higher economic growth, a good crop, high product prices, and stable overall conditions in Brazil.
The Randon group comprises nine companies in the following areas: implements, including trailers, semi-trailers and railway wagons; vehicles, including trucks, forestry equipment and backhoses; and auto parts. The company also provides services via the Randon consortium and bank.
*Translated by Gabriel Pomerancblum
