STXNEWS LATAM-Brazil's Magnesita misses profit forecast as costs spike
Magnesita, the world's No. 3 producer of fireproof material for steel mills, saw third-quarter net income plunge 71 percent from the prior three months after costs and expenses fell at a slower pace than revenue. Output of refractory material and minerals such as dolomite, magnesite and graphite dropped 11 percent and 21 percent, respectively, on a quarter-on-quarter basis, the company said in a securities filing.
Net income at 10.7 million reais ($5.3 million) missed the average estimate of 18.3 million reais predicted by a Reuters poll of four analysts. On a year-on-year basis, profit sank 69 percent.
Earnings before interest, tax, depreciation and amortization, a gauge of operational profitability known as EBITDA, slumped 20 percent to 84.3 million reais, down from an estimated 88.8 million reais in the poll.