Marcopolo expecting improved results in Egypt

03 de maio de 2016

São Paulo – Production, revenues, exports, and net income all dropped for the Brazilian bus maker Marcopolo in Q1 this year from Q1 2015. On announcing its results this Tuesday (3rd), the company imputed the performance to the crisis in the country, but said orders have been placed for its unit in Egypt, and that should make for better results in Q2.

The company’s Egyptian arm, GB Marcopolo, received an order for 150 buses, for delivery in Cairo, and another 90 to be delivered in Alexandria. Both deals should lead to “improved results” as early as Q2, Marcopolo said. The company has had an assembly line in the Arab country since 2009, via a joint venture with local enterprise GB Auto.

Total Q1 revenues stood at BRL 428.3 million (USD 123.6 million), a 34.8% drop over Q1 2015. The main reason was domestic performance. In Q1 2015, the company grossed BRL 360 million (USD 103.9 million) in Brazil, while Q1 2016 revenues reached BRL 192.50 million (USD 55.5 million). Revenues from exports and foreign operations fell 20.6% to BRL 235.8 million (USD 68 million). Q1 net income was BRL 8.8 million (USD 2.5 million), down 74.1% from Q1 2015.

From January to March, Marcopolo produced 1,077 vehicles at its plants in Brazil, down 61.9% from last year. Overseas output stood at 288 units, down 47.2%. Overall, production plummeted by 59.5%.

The company’s balance sheet attributes its performance to the economic scenario and political instability plaguing Brazil, but notes that measures are being taken to overcome difficulties, including boosting exports through a dedicated project. That effort and the strong US dollar are increasing Marcopolo’s presence in Latin American, African and Middle Eastern markets, the company said.

Marcopolo shares listed on the São Paulo Stock Exchange have lost value this Tuesday (5th). Preferred shares with no voting rights were selling for BRL 2.32 (USD 0.669), down 4.92%. Common shares with voting rights were trading for BRL 1.88 (USD 0.542), down 5.05%.

*Translated by Gabriel Pomerancblum