Santos Brasil announces record EBITDA oF R$115.8 million

28/07/2011

In the second quarter of 2011, Santos Brasil recorded EBITDA (operating income before interest, taxes, depreciation and amortization) of R$115.8 million, representing a year-on-year increase of 69%, accompanied by an  EBITDA margin of 42.1%. Recurring EBITDA, which excludes expenses with provisions for non-recurring expenses, came to R$118.3 million, with a margin of 43%, 72.4% up on the same  period in 2010. Year-to-date EBITDA totaled R$218.3 million, with a margin of 41.3%.  The Company is maintaining its annual EBITDA guidance of R$490 million, with a margin of 43%.

SYear-to-date investments amounted to  R$101.7 million, R$56.3 million of which in the second quarter. Tecon Imbituba, the Company's container terminal in Santa Catarina, which is being developed as an alternative  port logistics hub in the South absorbed R$32.1 million, 57% of the second-quarter total:  . The region as a whole absorbed R$66.8 million in the first half.  In June, Tecon Imbituba took delivery of two portainers (ship-to-shore gantry cranes), which move on rails and are capable of handling the largest vessels in the world (Ultra Large Containerships, or UCLs)). Tecon Santos, currently the largest of the Company's operations, received first-half investments of R$28.9 million in infrastructure, upgrading of equipment and staff training.

Net revenue totaled R$275 million in 2Q11, 43.8% up year-on-year, while first-half growth stood at 46.6%  Consolidated net income came to  R$40.0 million, versus R$20 million in 2Q10,  and consolidated gross revenue reached R$314.4 million a substantial 45% improvement over 2Q10.  Year-to-date gross revenue moved up 47.8% year-on-year.

According to Marcos Tourinho, Santos Brasil's Investor Relations Officer  the strong growth in Brazil's foreign trade, coupled with increased productivity, mainly at Tecon Santos, had a direct impact on the Company's results. "Santos Brasil has invested continuously in equipment and staff training, and in May of this year achieved its highest ever figure of 70.2 MPH (container movements per hour),  more than 30% up on the 54 MPH recorded in December 2010," he explained.

Container Handling

In 2Q11, the total number of containers handled by the Company's terminals (Tecon Santos - SP, Tecon Imbituba - SC and Tecon Vila do Conde - PA) grew by 11% over 2Q10 to238,384, 80% of which full.  The year-to-date total stood at 465,383 20% up on the first six months of 2010.

The number of full containers handled increased by 14.9% in the period, mainly due to substantial sugar exports, particularly in June, as well as continuous import flows.

Stored volume at Santos Brasil's port terminals reached 44,979 containers, 10.1% up on 2Q10. In the logistics sector, the amount of stored cargo at the Customs Logistics and Industrial Center (CLIA) in the Port of Santos (bonded warehousing) totaled 19,332 containers, 29.9% more than in  2Q10, acompanying the growth of imports through the Port of Santos.

Almost four years ago, Santos Brasil began structuring its logistical operations outside the Port, verticalizing operations from the terminal to transportation to the distribution centers,  which handle storage, kit assembly, labeling, picking and inventory management. Revenue from integrated logistics operations recorded year-on-year growth of 40.3% in 2Q11.