Brazil's Votorantim profits fell despite higher revenue in the third quarter

SMM11, 12 / 12 -: Votorantim SA, one of Brazil's largest diversified industrial groups, reported a sharp drop in third-quarter net profit on Friday from 2017, mainly due to a weaker Brazilian currency.

But the rise in cement, zinc and aluminium prices helped the group's revenues rise 22 per cent from a year earlier to R $9 billion. The one-off effects of earnings before interest, taxes, depreciation and amortisation, dividends and asset sales, which measure operating profits known as adjusted interest and tax earnings, rose 30 per cent to R $1.7 billion.

Sergio Malacrida Votorantim, chief financial officer, said in an interview that the group was likely to maintain capital spending at about 2.6 billion reais in 2018. Nexa Resources SA, a subsidiary of the group, has just approved a capital expenditure of US $392 million and will set up a zinc mining project in the Brazilian state of Mato Grosso.

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