Boom in the automotive sector benefits Tegma

Boom in the automotive sector benefits Tegma

Wednesday, August 15, 2007 00:00
[Gazeta Mercantil/Caderno A – Pág. 6][Redação]

Tegma Logística, whose main business focus is the automotive industry, benefited from the boom in this activity, driven by falling interest rates and longer repayment terms. The number of brand new cars transported by Tegma rose 17%, totaling 213,173 in the 2Q07. Average kilometer transported per vehicle rose 11.9% to 802 kilometers.

According to the brokerage firm Ativa Corretora, these factors had a positive effect on the company´s results with net revenue in the 2Q07 reaching R$ 173.06 million – a growth of 31.5%. Adjusted EBITDAR grew 45% to R$ 28.13 million and net income rose to R$ 9.3 million, 26.1% over the same period in 2006.

Of Tegma´s second quarter revenues, R$ 153.4 million was from transport and logistics services in the automotive chain, a 33.1% increase year-on-year. According to Ativa, “this is due to the spurt in vehicle sales seen in the domestic market and also due to the commencement of automotive parts transportation for clients like Aethra, GM Penske, CNH, Reiter and others”.

Tegma, which recently listed its shares on the São Paulo Stock Exchange (Bovespa), expects to post net income between R$ 680 million and R$ 720 million and EBITDAR margin between 16.5% and 18.5% in 2007.

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