SAO PAULO, March 29, 2016 /PRNewswire/ -- Eternit S.A. (BM&FBOVESPA: ETER3) announces its results for the 4Q15 and 2015.
The economic scenario was very challenging in 2015, with weak sales of construction materials in the domestic market in the fourth quarter of 2015, according to the Brazilian Construction Materials Industry Association (ABRAMAT). Meanwhile, in the same period, despite the sector's weaker demand, Eternit outperformed the industry average.
Chrysotile mineral sales volume in 4Q15 amounted to 51,600 tons, decreasing 22.7% from 4Q14, reflecting the weaker demand in the construction materials industry and the competitiveness of competitors in the external market, in addition to the reduction in sales to India due to increased competitiveness of steel tiles. In the same period, fiber-cement sales came to 203,200 tons, down 11.2% from 4Q14, while concrete roofing tile sales decreased 6.1%, mainly due to the industry slowdown, higher unemployment, falling household income and credit restrictions, as well as a slowdown in the pace of renovations.
Consolidated net revenue in 4Q15 amounted to R$240.8 million, down 8.7% from 4Q14, due to lower sales volume, which was partially neutralized by export revenue from the subsidiary SAMA supported by the weaker local currency.
Adjusted EBITDA in the quarter was R$15.9 million, decreasing 71.0 from 4Q14, which is mainly explained due to decline in sales volumes, as commented above, in addition to the provision of labor contingencies related to the Public Civil Actions of Sao Paulo filed by the Ministry of Labor and the ABREA for applications that the Company's legal advisors deemed as probable.
Given the aspects discussed in the Adjusted EBITDA, as well as higher financial expenses arising from exchange rate changes on debt, and deferred income tax of the subsidiary Tegula, due to the partial reversal, the net loss amounted R$12.3 million in 4T15.
In January 2016, the Board of Directors approved the Share Buyback Program, with the shares acquired to be held in treasury and subsequently sold or cancelled, with no reduction in the capital stock.
Time: 02.00 p.m. Brazilian Local Time – 01.00 p.m. New York – 06.00 p.m. London
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SOURCE Eternit S.A.