Braskem Quarterly Loss Surprises Analysts on Advertising Costs
Net loss was 124 million reais ($61 million) in the third quarter, the Sao Paulo-based company said in a regulatory filing today. The result missed estimates of a profit of 32.6 million reais excluding one-time items, data compiled by Bloomberg with six analysts show. The company posted a loss of 1.05 billion reais a year earlier.
General and administrative expenses rose 4 percent to 291 million reais because of the sponsoring of the Rio +20 Earth Summit, audit services and institutional campaigns, the company said today. Selling expenses climbed 16 percent because of “stronger sales and the addition of the new polypropylene assets,” according to the statement.
Net sales rose 9 percent to 9.45 billion reais.
Financial expenses fell 72 percent to 568 million reais, after currency losses from a year ago didn’t repeat. Fitch Ratings cited “concern about the company’s ability to lower its leverage levels” on Oct. 26 when it lowered Braskem’s credit outlook to negative.
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