São Paulo – Fras-Le, a Brazilian manufacturer of brake linings and brake pads, exported more to Middle East in the first nine months of the year than in the equivalent year-ago period, according to information released by the company. The company increased the revenue obtained from foreign sales by 13.3% to US$ 77.8 million in January through September, and part of this amount came from certain markets. “This development was mainly fuelled by the exchange rate fluctuations and increase in sales to African, Middle East and Central America\/Caribbean markets,” Fras-Le explained in the Q3 report.<\/p>\n
Middle East increased from a 3.7% share in the company’s exports in the first nine months of 2013 to 4.7% in the equivalent period this year. The leading target market for Fras-Le abroad, however, was NAFTA (i.e. the North American Free Trade Agreement comprised of the United States, Mexico and Canada), which has purchased year-to-date through September, 56% of all the company’s exports. South America accounted for 19.4% of the sales, Europe for 5.9% and Africa for 7.9%. Individually, the North American market is the leading buyer, with 45.3% of the total.<\/p>\n
Fras-Le, which is part of conglomerate Randon, has factories in Brazil, United States and China, distribution centres in Argentina, Europe and the United States and business operations in the United States, Chile, Germany, Mexico, the United Arab Emirates and South Africa. The revenue the company obtained from foreign markets, including the results of units abroad and exports from Brazil, was up 4.9% to US$ 116.3 million year-to-date through September. <\/p>\n
In the report, Fras-Le says Brazil is going through an adverse scenario, with a Gross Domestic Product growth below the expected, for which the industry as a whole, including the car industry, has contributed. The company’s products, which range from brake linings to brake pads, are used by the car industry. “We have noted a fluctuation in business with car manufacturers and part suppliers, a fact which reflects the current economic situation in Brazil,” reads the companies report.<\/p>\n
Fras-Le’s total gross revenue increased by 6.8% to R$ 782 million (or US$ 311.813 million at current exchange rates) year-to-date through September this year. Net revenue increased by 8% to R$ 578.2 million (US$ 230.551 million). Net revenue from the domestic market has grown by 1.5% to R$ 306.9 million (US$ 122.373 million). Q3, however, did not fare as well. Total gross revenue increased by 1.5% to R$ 268 million (US$ 106.862 million) from the same period in 2013, net revenue increased by 4.4% to R$ 199 million (US$ 79.348 million), while the revenue from the domestic market declined by 4.9% to R$ 102.6 million (US$ 40.910 million).<\/p>\n
“Sales, in spite of the increase seen, reflect the Brazilian market instability, particularly in business transactions with car manufacturers and part suppliers, but with a development in the market for replacement parts and in the foreign market,” reads Fras-Le’s report.<\/p>\n
The consolidated net income was 4.2% higher in the first nine months of this year than in the equivalent year-ago period, with R$ 34.5 million (US$ 13.756 million). In Q3, the consolidated net income stood at R$ 12.5 million (US$ 4.984 million), down 12.6% from Q3 2013. The company’s market value was R$ 509 million (US$ 202.958 million) by the end of September, with an annual growth of 17.6%.<\/p>\n
*Translated by Rodrigo Mendonça<\/strong><\/p>\n