Fibria Posts Fifth Quarterly Loss on Costs, Bond Buyback
Fibria Celulose SA (FIBR3), the world’s largest pulp producer, reported a fifth straight quarterly loss amid higher costs and expenses related to a bond buyback.
The third-quarter net loss narrowed to 214.6 million reais ($105.9 million) from 1.11 billion reais a year ago, Sao Paulo- based Fibria said today in a statement. That compares with the 54.8 million-real average estimate of six analysts in a Bloomberg survey.
The company posted a net loss because of “the impacts of the one-off expense of financial charges on the 2020 senior notes tender offer and the dollar’s appreciation against the real,” according to the statement. Shares rose for the first time in eight days, gaining 0.5 percent to 17.78 reais at 11:55 a.m. in Sao Paulo.
Fibria announced a buyback of about $500 million of bonds in June in a bid to cut debt. Net debt dropped 10 percent to 8.56 billion reais.
Earnings before interest, taxes, depreciation and amortization of 573 million reais surpassed the 569.3 million reais expected by analysts. The cash cost of producing pulp, the raw material used to make paper, rose 2.1 percent to 491 reais a ton on chemical costs and after maintenance stoppages at two of its plants.
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