Magnesita Refratarios SA (MAGG3): Company Profile and SWOT Analysis by WMIntelligence

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									Magnesita Refratarios SA

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Magnesita Refratarios SA                                                      Financial Snapshot

                                                                              Operating Performance
Fast Facts
                                        Praca Louis Ensch, Contagem, 32210-   The company reported revenue of US$1,310.11
Headquarters Address
                                        902,Brazil                            million during the fiscal year 2011 (2011). The
                                                                              company's revenue grew at a CAGR of 69.98%
Telephone                               + 55 31 33681111
                                                                              during 2007–2011, with an annual growth of 1.87%
                                                                              over 2010. In 2011, the company recorded an
Fax                                     + 55 31 33681036                      operating margin of 12.57%, as against 14.94% in
                                                                              2010.
Website                                 N/A

Ticker Symbol, Stock Exchange           MAGG3, Sao Paulo Stock Exchange       Revenue and Margins

Number of Employees                     6,782

Fiscal Year End                         December

Revenue (in US$ million)                1,310.11

Revenue (in BRL million)                2,318.90




SWOT Analysis
                                                                              Return on Equity
Strengths                               Weaknesses
                                                                              The company recorded a return on equity (ROE) of
Broad service offerings                 Weak operating performance            3.71% for 2011, as compared to its peers, RHI AG
                                                                              (Ticker: RHI), Imerys SA (Ticker: NK) and Cookson
                                                                              Group plc (Ticker: CKSN), which recorded ROEs of
Enhanced financial leverage                                                   27.72%, 12.94% and 11.23% respectively. The
                                                                              company reported an operating margin of 12.57% in
Focus on research and development                                             2011.

Strong market position                                                        Return on Equity

Vertical integration

Opportunities                           Threats
Growing infrastructure expenditure in
                                        Stringent regulations
Latin America
Recovery in the US construction
                                        Volatile input prices
industry




                                                                              Liquidity Position

                                                                              The company reported a current ratio of 2.99 in 2011,
                                                                              as compared to its peers, RHI AG, Imerys SA and
                                                                              Cookson Group plc, which recorded current ratios of
                                                                              1.44, 1.58 and 1.63 respectively. As of December
                                                                              2011, the company recorded cash and short-term
                                                                              investments of worth US$460.06 million, against
                                                                              US$70.51 million current debt. The company reported
                                                                              a debt to equity ratio of 0.38 in 2011 as compared to
                                                                              its peers, RHI AG, Imerys SA and Cookson Group
                                                                              plc, which recorded debt to equity ratios of 1.16, 0.67
                                                                              and 0.42 respectively.




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Magnesita Refratarios SA - SWOT Profile                                                                               Page 1
Magnesita Refratarios SA

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