Growth in Exports and Domestic Sales Lead to the Largest Revenue
of US$ 1 Billion and Consolidates a Record Year for VCP
SAO PAULO, Brasil, Jan. 18 /PRNewswire-FirstCall/ -- Votorantim Celulose e
Papel S.A. (VCP) (NYSE:VCP) (BOVESPA: VCPA4), one of the largest pulp & paper
producers in Latin America, today announced its earnings for the fourth quarter
of 2004 (4Q04). The Company's operating and financial information, unless
otherwise indicated, is presented in consolidated numbers and in U.S. dollars
in accordance with U.S. GAAP. However, it does not include the proportionate
consolidation (12.4%) of Aracruz Celulose S.A., whose results have been
determined by equity income method in this report. All comparisons provided in
this release refer to the fourth quarter of 2003 (4Q03), unless otherwise
indicated.
"In 4Q04, global pulp markets began to show signs of recovery, with producers
exercising more discipline and Chinese and European buyers resuming their
purchases in order to replenish inventories. This permitted VCP to announce an
increase in international eucalyptus pulp prices in November. The local
economic situation remained favorable thanks to the country's political and
economic stability, lowering the country's sovereign risk as well as declining
exchange rates, thus allowing domestic paper sales to continue to grow in
comparison with the same period last year, albeit at a more moderate pace.
Under this scenario, VCP reported a historical record during the quarter in
terms of net revenue, with a sharp increase of 30% in export volumes,
particularly in pulp exports (+43%). When compared to 4Q03, domestic pulp and
paper sales grew 4% in volume (tons), and average prices rose 9%.
2004 was a record year for VCP in terms of earnings, with net revenue growing
24% versus 2003, pushed up by a sharp increase of 39% in pulp volumes, and 8%
in paper volumes. The Company also reported a record EBITDA level of US$ 414
million, up 22% from 2003. Net income amounted to US$ 303 million in 2004, the
largest annual net income of VCP's history.
On November 10, VCP announced an agreement with Suzano Papel e Celulose S.A. for a joint acquisition of the common and preferred shares of Ripasa S/A
Celulose e Papel held by its majority stockholders," commented Valdir Roque,
CFO and IR Director for VCP.
Main Financial Indicators
(in US$ millions) 4Q04 4Q03 4Q04/4Q03
Net Sales Revenue 278 235 18%
Domestic Sales 138 122 13%
Exports 140 113 24%
Operating Profit 78 72 8%
Net Income 68 65 5%
Earnings per ADR* 0.35 0.34 3%
EBITDA 103 92 12% * Earnings in US$ per total ADRs not considering shares held in treasury. DATASOURCE: Votorantim Celulose e Papel S/A CONTACT: Investor Relations, Natasha Nakagawa, Votorantim Celulose e Papel S/A, +011-5511-3269-4168, or +011-5511-3269-4261 or +011-5511-3269-4287, or Web site: http://www.vcp.com.br/
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