Romi to invest US$ 132 mi in two new units
Valor Econômico 11/01/2007
Yesterday, Romi industries published their results for the third quarter and also used the opportunity to announce the implementation of two new units. In total, the company will invest R$ 230 million (US$ 132 million) in the construction of a foundry (R$ 120 million /US$ 69 million) and a center for the machining of parts (R$ 110 million /US$ 63 million) until 2011. According to Romi's Director of Investor's Relationship, Sergio Roberto Novo, the funds to be invested are not part of the R$ 230 million (US$ 132 million) obtained with the issuance of shares carried out earlier this year in April, which are reserved for acquisitions. According to the material fact sent to the Brazilian Securities and Exchange Commission (CVM), both projects will be financed by contracts in addition to company's own resources. The plans for enlargement will double the metal castings production capacity, which is currently 40 thousand tons a year. The machining of parts will also increase by 40 thousand tons until 2011. The sites of the new plants are still to be defined. According to the balance sheet, new orders have grown 57.1% in comparison with the third quarter of 2006. In gross values, the orders amounted to R$ 183.3 million (US$ 105.3 million) from July to September. Net profits ended the period at R$ 36.2 million (US$ 20.8 million), which means an increase of 47.8% in relation to the same period of the previous year. According to the company, both more profitable financial investments and less expenditure with taxes have been the greatest responsible for the period's increase in profits. The net income has shown an advance of 7.4%, to R$ 164.51 million (US$ 94.5 million). The cash generation measured through ebitda (Earnings before Interest, Taxes, Depreciation and Amortization) reached R$ 39.67 million (US$ 22.8 million), an increase of 12.1% in the third quarter of 2006.