SG:Brazil currency depreciation benefits Vale and other exporters - Mr Ferreira
Dow Jones cited Mr Murillo Ferreira CEO of Vale as saying that the recent depreciation of the Brazilian real against the US dollar is generally positive for iron ore miner Vale SA and other Brazilian exporters, even though it brought the company a third-quarter financial loss.
He said that the gains in Vale ADR share price in New York and its share price on Sao Paulo Bovespa exchange earlier Thursday continued to display investors' confidence in the company. The ADRs were recently up 7.5%.
Mr Guilherme Cavalcanti CFO of Vale said revenues at Vale which exports most of its output, are mainly in dollars and its costs are in Brazilian reais. The USD 2.9 billion noncash financial loss registered by the company in the third quarter was caused mainly by derivatives trading and may be considered a one-off loss.
He said that "We won't have this impact again in the future. The company's currency bets are totally matched."
