Suzano out of prejudice to R$ 53 million profit in 3Q

São Paulo Suzano Papel e Celulose had sharp drop in quarterly net profit between July and September, in a result impacted by exchange rate and the decline in pulp prices, which also affected rivals in the country.
The company had net profit of 53 million dollars in the third quarter after a positive result three months before 954 million reais. But the performance was able to reverse the loss of 959 million suffered between July and September 2015.
Last week, the rival Eldorado Brazil announced profit of 11 million dollars for the third quarter, compared with a positive result of 334 million a year earlier. Cash generation, as measured by earnings before interest, taxes, depreciation and amortization (Ebitda) had 43% crash.
In Suzano, the fall of Ebitda compared to the previous year was 48%, 767 million dollars in adjusted terms.
"The result of the cellulose segment continued feeling the consequences of exogenous factors (pressure on the price of cellulose and appreciation of the real against the dollar)," said Suzano in the balance sheet, adding that raised their prices for China to 530 dollars a tonne from this month, repeating the Fibria rivals increase strategy and Eldorado, which raised their prices in $ 20.
Suzano had 17% falls in sales of cellulose between the second and third quarters of this year and 15% in the annual comparison, despite an environment, according to the company, healthy demand for input.
The company said that the crashes occurred due to schedule of shutdowns for maintenance and lower production rate in Imperatriz (MA) on investments for elimination of bottlenecks.
In the paper area, the company had 5% high in sales between the end of June to end of September, but in comparison with the third quarter of last year there were 7,5% drop, pressured by a fall in exports.
The company said the net price of the ton of paper sold in Brazil rose 13,6% on the third quarter of last year, the actual 3,179.
Suzano ended the third quarter with a net debt over adjusted Ebitda of 2.4 times compared to 3 times at the end of September last year and 2.1 times in the second quarter of this year. In the balance sheet, the company said that "we will not give up the financial discipline".