ALL AMERICA LATINA LOGISTICA SA Curitiba, Brazil, August 5th, 2014 - América Latina Logística S.A. - ALL (BM&FBovespa: ALLL3; OTCQX: ALLAY), the Latin America's largest independent logistics services company, announces its results for the second quarter and first half of 2014 (2Q14 and 1H14). The Company offers a full range of logistics services, including rail and trucking transportation, distribution, warehousing, customized container transportation combined with fractioned distribution and intermodal door-to-door transportation. ALL comprises four main businesses: (i) ALL Rail Operations, (ii) Brado Logística, (iii) Ritmo Logística and (iv) Vetria Mineração.
On June 5th 2013, the Argentine Government rescinded the concessions of ALL in the country, in which the Company used to hold economic rights. As an effect of the rescission, results coming from Argentina´s operations are now presented as "Results of Discontinued Operations". Therefore, discussions about ALL Rail Operations refer to Brazilian operations only, unless otherwise stated.
OPERATING AND FINANCIAL HIGHLIGHTS | ||
Consolidated EBITDA increased 0.2% in 2Q14 against 2Q13, reaching R$579.5 million, as a result of a flat performance in Rail Operations EBITDA, an increase of 39.8% in Brado Logística EBITDA, and a 51.3% decrease in Ritmo Logística. In 1H14, Consolidated EBITDA grew 4.8% against 1H13, from R$977.1 million to R$1,024.2 million. | ||
ALL Rail Operations volumes increased 0.9% year-over-year in the 2Q14. In spite of a better operational scenario at the Port of Santos when compared to 2Q13, we faced a very tough demand scenario, as China reduced abruptly its demand of grain imports from Brazil during the period. The demand drop affected transported volumes and yields throughout our rail network. Moreover, in June we suffered with excessive rainfalls, interrupting several rail segments in the South Region of Brazil for about 10 days. | ||
Rail Operations average yield, measured in R$/´000RTK, grew 4.4% in 2Q14 year-over-year, supported by the tariffs set in our take-or-pay agreements in a scenario of depressed levels at spot market freight prices. Spot market freight prices declined approximately 13% in Wide Gauge (from Mato Grosso to Santos) and 21% in Paraná Corridor, which are the two most important agricultural corridors that we operate, when compared to 2Q13. | ||
Brado Logística EBITDA increased 39.8% in 2Q14, reaching R$15.5 million, with a 17.9% growth in transported volumes. Brado´s growth was driven by Wide Gauge and Paraná corridors, as the company (i) added rolling stock for 2014, (ii) invested on the expansion of Cambé (PR) and Cubatão (SP) logistic complexes and (iii) started operations in Rondonópolis terminal. | ||
Ritmo Logística had another tough quarter. Volume decreased 33.9%, pushed by both (i) Dedicated Solutions Unit, mainly due to discontinuation of low profitability operations in this segment, and (ii) Intermodal Unit, especially driven by the shortage in agricultural commodities transportation demand, shrinking margins due to the drop in spot market freight prices in the 2Q14. | ||
Perspectives should improve for the 2H14. After a weak 2Q14, grain exports should recover to its normal course and sugar exports are expected to increase through Paranaguá Port. In addition, we have a better operational scenario than we faced last year, especially in the grain segment, once the unloading restrictions we had at the main grain unloading terminals are already solved. Volumes should also be benefited by Rondonópolis terminal, which started operations in 3Q13 and ramped-up until the end of 2013, increasing the average of transported distance. In industrial segment we should keep benefiting from (i) Brado´s volume, as it continues its ramp-up, and from (ii) Eldorado´s volume. | ||
|
distributed by
|
