Klabin's profit triples 1st tri as a result higher than expected

SAO PAULO-the paper manufacturer Klabin announced on Thursday that first-quarter net income tripled compared to the same period last year, before significant increase of value of biological assets that include the company's forests, in addition to positive exchange rate changes.
Between January and March, the company's net profit came to 607 million reais, up from 202 million achieved a year earlier. The result also surpassed the average forecast of analysts of 230.25 million reais.
Improvement in the fair value of biological assets generated a positive effect of 522.1 million reais in Klabin's result, compared with 61.6 million reais a year earlier.
The significant increase was due, according to Klabin, the increase in prices used in the evaluation and the relocation plan of cutting down forests for the project of construction of the first pulp mill company.
NET currency fluctuations also contributed to the jump in net profits, getting positive 150.5 million reais in the first quarter, against 59.7 million reais in the same period in 2013.
Klabin's net revenue rose 13 percent in the quarter ended March, the 1.2 billion reais.
"With the high exchange rate over the first three months of 2014, Klabin has kept sales in most markets attractiveness through the flexibility of its product line," the company said, adding that overseas sales now account for 35 percent of the total, compared with 30 percent in the same quarter of last year.
At 10:54, Klabin's actions showed appreciation of 0.9 percent, while the Bovespa showed indentation of 0.5 percent.
Already the cash generation as measured by earnings before interest, taxes, depreciation and amortization (Ebitda) adjusted rose 11 percent compared to the previous year, the 424 million reais, above the expectation of 410.5 million reais of analysts.
The company's investment in the quarter reached 503 million reais, jump to the 152 million reais a year earlier, boosted mainly by 347 million intended for the Puma Project, which includes the construction of a pulp mill in Ortigueira (PR).