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Brazilian industry of composites reports 2Q11 earnings totaling USD 440 million

News International-French

24 Aug 2011

Brazilian industry of composite materials reported its earnings, which totaled USD 440 million in the second quarter, corresponding to a drop of 1.7% compared to the first three months of the year.

Brazilian industry of composite materials reported its earnings, which totaled USD 440 million in the second quarter, corresponding to a drop of 1.7% compared to the first three months of the year. The consumption of raw materials fell 1,400 tons, totaling 45,500 tons (-2.8%). These figures are part of the latest survey of Maxiquim, a consulting firm hired by the Brazilian Composite Materials Association (ABMACO).

The performance in the 2Q led Maxiquim to review its projections for 2011. Now, the company estimates that there will be a 7.9% revenue increase in the composites sector, totaling USD 1.740 billion – it was expecting an 8.2% increase in March. In terms of volume, Maxiquim estimates that Brazil will process 211,000 tons, 3.2% higher than in 2010, but lower than the initial estimate, which was 214,000 tons.

“Such drop was not expected, and part of it was due to the delay of government programs such as ‘PAC 2’ (Growth Acceleration Plan) and ‘Minha Casa, Minha Vida 2’ (‘My House, My Life 2’). With special mention to the Brazilian currency appreciation, which cancels the competitiveness of Brazilian companies, leading to the reduction of inventories of the main consumers, as a result of the capital cost. Another relevant factor is due to the anticipation of the global crisis consequences. In fact, we are concerned with this new global crisis scenario, but the time is not prone to stagnation or paralysis, but to reaction, so that we can close the year with a growth of approximately 8%. Innovation, education, efficiency and creativity will be the watchwords for the second half of the year”, says Gilmar Lima, president of ABMACO.


About ABMACO
Established in 1981, the Brazilian Composite Materials Association (ABMACO) represents the entire production chain of composites or fiberglass reinforced polyester (FRP), a material that has over 40,000 applications cataloged worldwide, from water storage tanks to pipes and aircraft and rocket parts. Presided by Gilmar Lima, General Director of MVC Soluções em Plásticos, ABMACO has about 300 members and holds, together with Institute for Technological Research (IPT), the Composites Technologic Center (CETECOM), the largest of its segment in Latin America.