Suzano Pulp and Paper
São Paulo, Brazil, 22 October 2008 – Suzano Pulp and Paper (Bovespa – SUZB5), the largest integrated manufacturer of eucalyptus pulp and paper in Latin America, recorded significant events in the third quarter of 2008, in spite of the global financial crisis:
In addition, the company’s good financial position is also confirmed by its appropriate debt-to-equity ratio in relation to payment timeframes and costs, and robust cash flow.
Even with these positive factors, when there is such a great fluctuation in the exchange rate (the devaluation of the real in the period in question was more than 20%) the total amount of the debts, according to accounting principles, are affected, even though they do not need to be paid until the maturity dates; and the revenues (those pegged to the exports) can only be considered when they are actually received. Therefore, the company had an accounting loss of BRL 293 million. However, since these exports will bring in more reals, the negative impact of this exchange rate devaluation should be more than compensated for over the next few quarters.
The schedule for the Suzano Pulp and Paper Organic Growth Cycle between 2008 and 2015 – three pulp production lines (Piauí, Maranhão, and a third location to be defined) and the production optimization at the Mucuri Unit (south of Bahia) – remains unchanged. The decision points for installing the industrial units and the respective expenditures are distributed over the next seven yearsand preparation of the forest base continues.
Aware of the necessity to build the present while looking to the future, Suzano is dedicated to manufacturing pulp and paper based on the three pillars of sustainability: economic, social, and environment. This is the essence of their business strategy, which gives them the competitive edge to securely position themselves in a highly competitive and globalized environment, and guarantee the perpetuity of their activities.