CVRD reports record profit for Q2

CVRD reports record profit for Q2

Brazilian mining giant Companhia Vale do Rio Doce (CVRD) reported a larger than expected 32% increase in second quarter profit, helped by higher prices for its iron ore and exports. CVRD, the world's largest exporter of iron ore, announced that it had a record second quarter net profit of Reais 1.68 billion ($553 million) compared with Reais 1.28 billion ($422 million) recorded in the same period of last year. EBITDA surged by approximately 76% to Reais 1.7 billion. CVRD raised prices and boost output by 9% at mines in Brazil's Amazon rain forest to a record 53.2 million mts in the quarter as demand for ore surged in China and Europe. In the mentioned period, revenue soared by 62% to Reais 3.6 billion. Shipments of iron ore and pellets, which accounted for 83% of revenue, increased to 34.1 million mts from 26.9 million mts in the second quarter of 2003. Shipments to China rose to 7.1 million mts from 4.98 million mts.