Brazil-based refractory materials producer Magnesita Refratarios posted BRL 26.8 million net loss in the first quarter (Q1) of 2015, the company said. The result is 61.6 percent lower compared to the BRL 16.6 million loss reported a year ago.
The company’s net revenue in Q1 rose 12.1 percent year-on-year, to BRL 806.2 million, while gross revenue totaled BRL 268.5 million, 16.2 percent up in the same period.
Magnesita’s gross margin was 33.3 percent in Q1, it said, adding EBIT in the first three months of 2015 reached BRL 131.3 million, 33.3 percent up from BRL 98.5 million a year ago.
Commenting the quarterly results, the company’s CEO, Octavio Lopes, said 2015 will be “very challenging year.”
“We should have a difficult year in Brazil, with recession, tax hikes, inflationary pressure, beside the shutdown of capacity at steel mills, ” he said.
Despite the negative prospect, the executive said Magnesita continues “focused in the execution of its strategic plan.”
“We’re hopeful that we’ll continue growing above steel production, with a more geographic diversification, and with the assurance that our global market share currently is lower than our potential,” he admitted.