Kepler Weber reports quarterly net profit of $3.89 million
December 20, 2010
by December 20, 2010
PORTO ALEGRE, BRAZIL — The Kepler Weber Group announced recently a net profit of $3.895 million in the third quarter of 2010, a 436% increase in comparison to last year’s profit in the same period — $708,000.
The increase in Kepler Weber sales is due to three main factors: a) investments that were held back last year due to the economic crisis, b) this year’s record harvest in Brazil; and c) the price recovery of agricultural commodities.
The favorable market conditions and the recovery of the company’s operational margins have provided the consolidation and growth of the gross margin from 8% in 2009 to 24% in 2010. The result of these factors has allowed Kepler Weber to achieve $8.6 million EBITDA in the period, compared to the $177,000 obtained in the same period last year.
The net income from sales in the third quarter of 2010 achieved a total of $57.962 million, 78% increment compared to the income recorded in the same period of the previous year. The domestic market share, based on businesses noted by the company in the grain storage system segment, achieved 54%, consolidating Kepler Weber's leading position in this market.
Anastácio Fernandes Filho, chief executive officer of Kepler Weber, said that "the accumulated profit of $4.781 million in 2010 is a fruit of the company’s continuous quest for operational excellence. At the same time, the company is also positioned to satisfy the growing demand for grain storage and also agricultural clients that require better quality, delivery time and innovation.
“2010 has been an excellent year for Kepler Weber, both because of the abundant internal demand and the attitudes taken to guarantee a competitive edge for the company — such as the specialization of its plants and the wider variety of suppliers,” said Investment Relations and Financial Director Nolci Santos.
He also said that the company is executing projects in the area of people management, qualifying the personnel so they can better serve the international market, in which it has developed commercial partnerships.