(10/29/2015) In order to reduce the effects of the crisis that affects the domestic demand, Paranapanema, the largest copper producer in Brazil, has maintained its strategy of developing new markets abroad. In the 2015 third quarter, 61% of the net revenue of R$ 1.5 billion originated in export. Asia and Latin America were the main destinations of enterprise.

As a result, the company earned net income of R$ 186.4 million in the last quarter, 42% higher than the same period in 2014, moving from an injurious situation for retained earnings of R$ 116.4 million. Net margin was 12.1%, 1.5 percentage point higher compared to the third quarter of 2014 (3T14). The adjusted EBITDA was R$ 160.4 million, with margin of 10.4%. Net revenue grew 24% over the third quarter last year due to increased sales volumes and the devaluation of the Real against the dollar.

“We are quarter to quarter, reaching important goals for our strategy, which has allowed the company to achieve its main objectives: the results’ predictability, business sustainability and the consequent creation of value for shareholders”, Christophe Malik Akli, the president of Paranapanema.

In this quarter, the sales volume of 77,900 tons, up 9% compared to the 2014 third quarter due to the increase of primary copper (refined copper plates) available for sale. A result of maintenance work preventive and programmed aimed at increasing the use of company’s industrial capacity. Of the total, 36.1 thousand tons of primary copper were sold in the period (61% more than in 3T14), driven by volume increase of 143% in demand from abroad. Sales of copper products (pipes, rods, laminates, wires and rods), 41.3 thousand tons, and co-products, 256,100 tons, fell by 15% and 11% respectively, offset by an increase in copper sales primary and the North-American’s currency appreciation.

The company has been working to maximize the Return On Invested Capital (ROIC) with efficient management of the capital’s use. Therewith, the ROIC (calculated for the period of 12 months prior to the measurement date) showed a significant increase, with a 3.1% jump to 11.9% in the last 10 quarters. The assessment is that there’s still room for ROIC growth due to several actions, including the monetization of non-operating assets to strengthen the company’s cash.

Paranapanema recorded R$ 1.3 billion cash position, R$ 300 million more in comparison between the quarters, even in a restriction credit scenario and Brazilian economy’s slowdown. In addition, the company has been successful in the debt profile of the stretching process, increasing the representativeness of long-term debt from 35% to 44% of the total.