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Brazil’s Klabin Advances as Third-Quarter Loss Trails Forecast

Klabin SA (KLBN4), Latin America’s biggest paper maker, gained after it reported a quarterly loss that was less than forecast.

The company posted a third-quarter net loss of 243 million reais ($143.6 million), according to a statement on its website today. That was less than the 266.3 million-reais loss, excluding some items, average estimate of four analysts in a Bloomberg survey.

Klabin advanced 2.1 percent to 6.36 reais at 12:43 p.m. in Sao Paulo. It was the biggest gainer on the benchmark Bovespa index, which dropped 1.7 percent.

“The company had good operational results, with higher paper prices boosting its revenue,” Leonardo Alves, an analyst at Sao Paulo-based brokerage Link Investimentos SA, said in a telephone interview. “A weaker real helps explain the quarterly loss, as it has a significant amount of dollar-linked debt, but this negative impact from the currency drop was already expected.”

The Brazilian currency slumped 17 percent in the third quarter, which caused Klabin a financial loss of 501 million reais, the company said in the statement. The real’s decline increases the value of Klabin’s dollar-denominated debt in local currency and is considered a loss under Brazil accounting rules.

To contact the reporter on this story: Ney Hayashi in Sao Paulo at ncruz4@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos in New York at papadopoulos@bloomberg.net

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