Braskem’s operational performance presented am evolution in the third trimester in relation to the second trimester, as shows the growth of the EBITDA - earnings before interest, taxes, depreciation and amortization- in 31%, jumping from R$ 519 million to R$ 683 million. The EBITDA margin, which expresses the business’ operational profitability, was 13.6%, almost two percent above the margin reached in the second trimester. This performance reflects mainly the increment of the revenue with petrochemical basics, especially of aromatics, which compensated greater costs
of naphta in the period.


Even with the uncertainties of the impact of the financial crisis on the world economy’s growth, the demand for thermoplastic resins in the Brazilian market, sustained by the increment of 23% in PVC, advanced 6% in relation to the third trimester of 2007. In the first 9 months of this year, the internal demand grew 9% in comparison to the same period of 2007, with an increase in participation of the imports due to the appreciation of the Real and the cooling down of the American economy. In this period, Braskem’s resin sales in the domestic market also presented an increment of 9%, pushed by the increased of 16% in PVC.

Braskem’s exports totaled US$ 765 million (25% of the net income) in the third trimester, before the strong retraction of deals in the international market starting in October. This sum represents an increase of 40% over the same period in 2007. In the accumulate of the first nine months, the exports reached US$ 1.8 billion, with a growth of 4% in relation to the equivalent period of the previous year.


The recovery of volumes exported of aromatic products, with highlight to benzene, was an important factor for better performance of external sales and the company’s profitability in relation to the second trimester, when the programmed stop for maintenance of the two petrochemical centrals reduced the product’s availability. With the return of these plants to complete load in the third trimester, the external sales of aromatics grew 45%.


The net revenue in the 3T08 reached R$ 5 billion, the greatest value ever registered by Braskem in one trimester, which represents an increase of 9% in relation to the revenue registered in the 3T07. When expressed in dollars, the consolidated net revenue in the 3T08 was 25% greater, reflection of the better international prices of these products.

In the first nine months of 2008, Braskem’s net revenue reached R$ 13.8 billion, with a reduction of 1% over the same period of 2007. Translated into dollars, the net revenue grew17% until September, reaching US$ 8.2 billion. The accumulated EBITDA, in turn, pulled back 29% in Real, reaching R$ 1.8 billion, or US$ 1.1 billion.
With practically 100% of the revenue linked, directly and indirectly, to the dollar variation
and approximately 85% of its coasts also connected to the North American currency, the Company considers the maintenance of a significant part of it debt also in dollars a "natural hedge". This positing is based on the principle that the Company’s debt should be in the same currency of its cash flow. Due to the debt in dollars, Braskem registered in 3T08 a loss of R$ 849 million after the participation of minority stockholders, taking the year’s accumulated result toa  loss of R$ 384 million. It is worth pointing out that Braskem does not use derivatives with speculative purposes.

In line with its commitment to capital discipline and to making investments with return above its capital cost, Braskem carried out consolidated investments that totaled $ 1.1 billion in the first nine months of 2008, including R$ 250 million in programmed stops in its two petrochemical centrals, which compared to R$ 769 million in the 9M07.


"Faced by the signs of recession in the world economy, Braskem reinforces the focus of its management on financial austerity, in the capture of synergies and in the acceleration of the set cost reduction program. Our capacity of cash flow generation and the recent pre-payment of exports program of US$ 725 million which successfully concluded the extension of the bridge-loan made for the acquisition of petrochemical assets from the Grupo Ipiranga give us tranquility in the management of our debt", says Bernardo Gradin, Braskem CEO.