March 1 (Bloomberg) -- Klabin SA, Latin America’s biggest paper maker, headed to a record high after posting higher-than-expected profit in the fourth quarter.
Shares rose 1 percent to 8.63 reais at 4:36 p.m. in Sao Paulo. A close at that price would be the highest since at least August 1994. The benchmark Bovespa index gained 1.4 percent.
Klabin’s net income fell 46 percent to 122 million reais ($71 million) in the fourth quarter of 2011 from 225 million reais a year earlier, the company said in an e-mailed statement today. The result beat the average estimate of 90.63 million reais for adjusted net income, according to a Bloomberg survey of six analysts.
The results were “a bit better” than expected, Pedro Galdi, head strategist at brokerage firm SLW Corretora, said by phone from Sao Paulo. “The reaction also follows the Bovespa index rising,” he said.
The company sold a property in Rio de Janeiro for 40 million reais, which helped boost fourth-quarter results, according to the statement. Net revenue increased 7 percent to 994 million reais in the quarter as the company sold 432,000 metric tons of paper products, up 4 percent from a year earlier.
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