30 August 2011
30 August 2011
The Brazilian Composite Materials Association (ABMACO) has reported a 1.7% drop in Brazilian composites industry earnings in comparison with the first quarter of this year.
According to ABMACO, the figures are part of the latest survey completed by Maxiquim, a consulting firm they have hired, the Brazilian composite materials industry 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. They also report that the consumption of raw materials fell 1,400 tons, totaling 45,500 tons (-2.8%).
ABMACO say the performance in the second quarter led Maxiquim to review its projections for 2011. Now, Maxiquim estimate 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.