Atlas completes investment amid the crisis
Valor Econômico 04/13/2009
Atlas Transportes e Logística, based in São Paulo, will expand its operations this year, with new investments in the region of Sumaré, the interior of São Paulo, and Joinville, in Santa Catarina. The funds will get to R$ 11.5 million (US$ 5 million), practically half of what was invested by the company in 2008. The president of Atlas, Francisco Martim Megale, said that in spite of the world economic crisis, there was no need to cancel the investments planned because the company is capitalized, although it has felt, in the last months, a reduction in the demand by the customers of cargo transportation. An 8 thousand square meter cargo terminal will be constructed in Sumaré, with investments of R$ 10 million (US$ 4.35 million), 30% of which comes from the net current assets of the company and 70% will be financed by the Brazilian Development Bank (BNDES).
According to the executive, the investments are not justified by specific industrial sectors of the economy, but the general plans of the company for this year, which involve the increase of participation above the competition, with a "more aggressive" commercial activity. The transports division grew 18% in the 2008 and the logistics one 50%, increasing the income of Atlas to R$ 390 million (US$ 213.1 million). According to Megale, the operating result was nearly 7.5% in terms of earnings. The company intends to increase its earnings to R$ 430 million (US$ 187 million) in 2009. Atlas has not cut down on its direct personnel as a result of the crisis, thus keeping nearly 2.6 thousand workers. However, it isn't hiring new people either and in the end of the year it terminated 15% of the contracts for outsourced manpower, which amounted to 3 thousand people.