RIO DE JANEIRO, Brazil, Oct. 25 /CNW/ -- Companhia Vale do Rio Doce
(CVRD) showed a solid performance in 3Q07 amidst a scenario of strengthening
Brazilian and Canadian currencies vis-a-vis the U.S. dollar, which has had a
negative impact on costs, and more moderate nickel prices, not contributing as
strongly to revenue growth.
The main highlights of our performance in 3Q07 were:
-- All-time high iron ore and pellet shipments, totaling 78.5 million
-- Gross revenue of US$ 8.1 billion, the highest ever for a third quarter
and 9.9% higher than 3Q06. Total revenue for the first nine months of
2007 (9M07) was US$ 24.7 billion against US$ 18.2 billion in 9M06.
-- Operational profit, as measured by adjusted EBIT (earnings before
interest and taxes), of US$ 3.4 billion, was 7.8% above 3Q06.
-- Adjusted EBIT margin of 43.4%, against 44.3% in 3Q06.
-- Adjusted EBITDA (earnings before interest, taxes, and depreciation),
was equal to US$ 4.0 billion in 3Q07, US$ 123 million more than 3Q06,
and also the highest value ever for a third quarter.
-- In 9M07, adjusted EBITDA reached US$ 13.3 billion(1) against
US$ 8.8 billion in 9M06. For the 12-month period ending in September
2007, adjusted EBITDA came to US$ 16.9 billion.
-- Net earnings of US$ 2.9 billion, corresponding to earnings per share
(EPS) on a fully diluted basis of US$ 0.60, our best third quarter, and
a 23.5% increase over the 3Q06 earnings of US$ 2.4 billion.
-- In 9M07, net earnings amounted to US$ 9.9 billion, as compared to
US$ 5.6 billion in 9M06. EPS on a fully diluted basis reached US$ 1.90.
-- Total debt of US$ 18.3 billion as of September 30, 2007, compared with
US$ 19.1 billion at the end of 2Q07, falling for the second consecutive
-- Dividend distribution of US$ 1.875 billion for 2007, an increase of
44.2% relative to 2006.
-- Investment reached US$ 1.6 billion, of which US$ 1.1 billion for
organic growth -- projects and R&D -- and US$ 521 million for
sustaining existing operations. In the year up to September,
US$ 4.4 billion has already been invested.
-- In the first nine months of the year, the Company invested
US$ 244.7 million in environmental protection and US$ 104.1 million in
social projects, sending a clear message of its commitment to corporate
In order to facilitate comparisons with the past and better evaluate
CVRD's performance, we shall, in this document, be using pro forma data for
3Q06 -- as if Inco Ltd., now CVRD Inco Ltd., had been acquired from January
1st 2006 -- with the exception of information concerning debt and investments
-- exactly the same procedure as was used for the 2Q07 results. Complete
accounting information for 3Q06 can be found in the report "Financial
Information - third quarter of 2007", filed at the U.S. Securities and
Exchange Commission (SEC) and Comissao de Valores Mobiliarios (CVM) in Brazil
and in reports on CVRD's results for the third quarter of 2006
(www.cvrd.com.br / investors relations section).
(1) Data for the first nine months of 2007 does not take into account the
extraordinary inventory adjustment made in 1Q07 and 2Q07.
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