Paranapanema Rallies After Posting First Profit in Five Quarters
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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