Thermoplastic resins sales grew 18% in the last quarter

The net profit accumulated by Braskem in the first nine months of 2005 reached R$ 681 million. This result represents three times more than the net profit of R$ 204 million registered in the same period of 2004 and it reflects the outstanding operational performance of Braskem. It is also important to stand out the maintenance of the wide utilization of industrial capacity and the expressive growth of thermoplastic resins sales in the internal market, signalizing the increase of Brazilian economy activities. In the third quarter, the net profit was R$ 48 milllion.

The international petrochemical sector and Braskem faced a challenging scenario in the third quarter, when the costs of Naphta reached historical high levels. "The recuperation of sales along the third quarter reinforces our trust in the consistent recover of the demand for thermoplastic resins in the domestic market and in our profitability increase from the fourth quarter on", says José Carlos Grubisich, president of Braskem.

The capacitiy utilization rates were high in the third quarter, over 95% for the main thermoplastic resins produced by Braskem - polyethylene, polypropylene, and PVC. The total sales volume of these resins registered a vigorous growth of 22% in the internal market, what indicates a trend of recuperation of the Brazilian economy, and of 18% considering the external market. In the accumulated until September, the volume of resins commercialized in both markets grew 8% when compared to the percentage of the same period in 2004.

Braskem exported US$ 230 million in the third quarter, aligned with the strategy of keeping a structural presence in the international market. In 2005, the exportations brought an income of US$ 739 million until September, an evolution of 21% over the value registered in the same period of 2004.

The net income of Braskem in the third quarter reached R$ 2,8 billion, a reduction of 17% in comparison with the same quarter of 2004. It is due to the prices realignment in the domestic market in relation with the prices in the international market. From January to September, the net income grew 6%, jumping from r$ 8,2 billion in 2004 to R$ 8,8 billion this year.

The EBITDA, that measures the profit of the company before the taxes, rates,
depreciations and amortizations, resulted in R$ 353 million in the third quarter, when compared to the R$ 570 million reached in the previous quarter, indicating the impact of the Naphta prices over the costs of the company and currency exchange. In the accumulated of 2005, the EBITDA reached R$ 1,6 billion, 15% less than the value of the same period in 2004. In dollars, the accumulated EBITDA grew 1% in 2005 and reached US$ 639 million.

The net debt of Braskem decreased in the first nine months of 2005, reaching US$ 1,4 billion in the end of September, 4% less than the value registered in December of 2004. In the same period, the relation between net debt and EBITDA presented a reduction of 10%, falling from 1,52 to 1,37 in September 31st.

Braskem keeps improving with the implementation of its operational excellence and competitiveness enhancement program known as Braskem +. Until September 2005, the company had already made R$ 235 million in productivity gains, in annual and recurrent bases, surpassing the R$ 170 million planned to the end of 2005. In relation with the expected for September, there is an increment of 48%.

It is also important to say that, during this quarter, Braskem made a patent deposit in nanotechnology. The first one made by a Brazilian petrochemical company in a technology that is a promise for revolutionizing people"s everyday life, what reinforces the relevance of the word innovation for the company. Furthermore, Braskem received the final approval from CADE - Conselho Administrativo Econômico (Administrative and Economical Council), concluding the process of analysis of the company creation.

The investments already made by Braskem in this year totalize R$ 428 million, of a total amount higher than R$ 600 million expected for 2005. This value includes the first mount for the project of a modern and competitive industrial unit of polypropylene in Paulinia-SP, in partnership with Petroquisa. This site is expected to start its operation in the end of 2005. "Braskem keeps its confidence in the growth of Brazilian economy and in the increase of the demand for thermoplastic resins in relation with PIB, and it also confirms its strong company growth program with value creation", conclçudes Grubisich.