Paranapanema SA, Brazil’s biggest copper smelter, surged after reporting its first profit in five quarters.
Shares jumped 9.7 percent to 5.30 reais at 2:46 p.m. in Sao Paulo, the biggest gain on a closing basis since July. It was the best performance on the BM&FBovespa Small Cap index, which added 0.3 percent.
Net income was 40.8 million reais ($20.6 million) in the three months through December, Santo Andre-based Paranapanema said in a regulatory filing today. That compares with a net loss of 61.2 million reais a year earlier, according to data compiled by Bloomberg. The manufacturer last reported profit in the third quarter of 2011, according to data compiled by Bloomberg.
The improvement is result of a better management and a new investment program, Pedro Galdi, the chief strategist at Sao Paulo-based brokerage SLW Corretora, said in a phone interview. “Paranapanema replaced executives and invested more to expand production,” he said.
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