Business News

Suzano Paper and Pulp Announces Consolidated Results for the 3rd Quarter of 2008

Thursday 23. October 2008 - Suzano reports record EBITDA, despite the unstable business environment

Suzano Paper and Pulp – (Bovespa: SUZB5), one of Latin America’s largest pulp and paper producers, announced today consolidated results for the 3rd quarter of 2008 (3Q08).

Main Highlights of the Quarter
— Record market pulp and paper production of 694.7 thousand tons;
— Record paper sales of 305.7 thousand tons;
— Pulp prices under pressure in September: US$ 820 / t (CIF Europe),
US$ 780 / t in Asia and US$ 845 / t in North America;
— Pulp cash cost of R$ 453 / ton, excluding the Mucuri maintenance
shutdown cost;
— Record EBITDA: R$ 365 million with a 36.9% margin;
— Accounting losses of R$ 293 million as a result of the 20.3% currency
exchange rate devaluation in the period;
— Net Debt / EBITDA ratio also affected by the currency exchange rate
devaluation on the Dollar denominated debt: 3.38x EBITDA in
Sept/08, compared to 3.19x in Jun/08 and 3.74x in Dec/07;
— Cash availability: R$ 1.7 billion on 09/30/2008;
— Hardwood pulp inventory levels reach 45 days of supply in August,
compared to 40 days in June 2008;
— New growth cycle announced for the 2008 / 2015 period (please refer to
Material Fact published on 07/23/08);
— Americana industrial unit starts to operate under the consortium model:
Consorcio Paulista de Celulose e Papel (Conpacel) on 09/01/2008;
— Andre Dorf takes office as Strategy and Corporate Development Director
on 07/21, and also IR Director as of 09/01; Carlos Anibal Almeida takes
office as Paper Business Unit Director on 07/21, and Carlos Griner as
Human Resources Director on 09/23.