Klabin SA, 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 1.4 percent to 6.32 reais at the close of Sao Paulo trading after earlier rising 3.2 percent. The benchmark Bovespa index dropped 2 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.