Fibria Surges After Earnings Top Estimates: Sao Paulo Mover
Fibria Celulose SA (FIBR3), the world’s largest pulp maker, jumped the most in a month after reporting a second-quarter net loss that was smaller than expected.
Shares rose 6 percent to 15.18 reais at 12:41 p.m. in Sao Paulo, the most since June 29. The Bovespa stock index advanced 0.6 percent.
The net loss was 524.3 million reais ($257.9 million), or 95 centavos a share, compared with a profit of 214.8 million reais, or 27 centavos, a year earlier, Sao Paulo-based Fibria said in a statement today. The company was expected to report a loss of 1.43 reais excluding some items, the average of five estimates compiled by Bloomberg.
Earnings before interest, taxes, depreciation and amortization increased to 37 percent of sales, from 34 percent a year earlier, after Fibria reduced inventories and cut costs, it said. Net sales rose 2.2, percent to 1.49 billion reais. The cash cost of producing pulp, the raw material used to make paper, declined 2 percent to 505 reais a ton in the period. Pulp inventories fell 5.5 percent.
Fibria was formed after Votorantim Celulose & Papel SA took over Aracruz Celulose SA in 2009 following $3 billion of derivative losses. The company raised 1.44 billion reais in a share offering in April to cut debt and reinforce its cash position.