Autometal has profit of R $ 46.5 million in the first quarter, up 17.5%

With a recovery in sales of heavy vehicles and maintenance of tax incentives to the automotive sector, as well as higher sales in the Nafta markets, the auto parts manufacturer Autometal reported high results in the first quarter of the year.
Net income attributable to shareholders totaled r $ 46.5 million in high 17.5% as compared to the same period last year. The net revenue was r $ 462,7 million, 29.1% over a year earlier.
However, the cost of goods sold grew more strongly than the recipe, 31.2% to r $ 352,7 million, as well as operating expenses, which advanced 35.1% and totaled r $ 49.7 million. So, there was a drop in profitability.
The Ebitda margin was 16.5%, compared to 18.6% in the first quarter of 2012. Ebitda was R $ 76.4 million, with growth of 14.4% in the annual evolution.
In addition to the sales recovery in Brazil, the performance was pulled Autometal. The recipe in the Nafta markets (USA, Canada and Mexico) increased by 48.6% compared to the first quarter of 2012, to R $ 219,7 million.
The figure was boosted by stronger sales of Mexican subsidiaries, which rose 9%, and, mainly, by the incorporation of the American Century Plastics, acquired in the fourth quarter, for $ 23.5 million.
As a result, sales in Nafta won representation in the company's global revenue, rising from 41.2% to 47.5%.
In the period, the net sales in Brazil rose 8.3%, to $ 228 million, and in other markets in Asia, which did not exist a year earlier, totaled r $ 15 million.
Costs and expenses
The incorporation of Century Plastics and Nanjing Automotive Forging, China, adversely affected the operating expenses of Autometal, which grew 35% to $ 49.7 million.
The Autometal increased participation in a joint venture with grupo Industrial Automotive Donghua, also in the fourth quarter, and got control of Nanjing. Brazil contributed $ 22.1 million and now holds 50% share.
The costs, in turn, were affected by the high prices of raw materials and labor. The registered with raw material accounted for 65.1% of the total a year earlier, to 67.7% in the last quarter, the company said in a report. The labor cost advanced 21%, to $ 73.4 million, reflecting also the incorporation of acquisitions made at the end of last year.
As a result, the company's profitability fell. Gross margin was 23.8% compared to 25% in the first quarter of 2012 and the Ebitda margin reached 16.5% compared to 18.6% in the same period.