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BULLETIN: ARAUCO's Cost Reductions Offset Weak Pulp Pricing in First Half of 2002 Aug 02
Standard & Poors, Aug 2002
Abstract
Standard & Poor's Ratings Services said today that Celulosa Arauco y Constitucion S.A.'s (ARAUCO; BBB+/Stable/--) efforts to reduce costs at the operating level have meaningfully balanced cyclical unfavorable pulp pricing. ARAUCO's profitability in the first half of 2002 improved mildly at the operating level, recording a 28.4% margin after depreciation and amortization, an improvement of almost four percentage points from the same period in 2001. In addition, final profitability was aided by ARAUCO'S decision to change its accounting basis to U.S. dollars from Chilean pesos, which has significantly tamed non-cash foreign exchange results. Cash flow generation was not affected by this accounting restatement and, because of the higher comparative debt, funds from operations to debt was weaker at 20.1% on...
Companies mentioned in this report are: Celulosa Arauco y Constitucion S.A.
Action: S&P Event
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research type: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.
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