SAO PAULO (Reuters) – Brazilian motor maker WEG SA reported a 50% jump in net profit, saying that “good demand” in the main regions where it operates helped it post positive figures.
WEG, which in the last couple of years faced supply chain disruptions, managed to improve its results across the board in the quarter, with growing operating margins and revenue.
The company said in a securities filing that reflected a good performance especially in its long-cycle business, which makes products used in large-sized projects such as transmission lines and wind power.
WEG’s quarterly net profit was 1.37 billion reais ($284.79 million), up 50% on a yearly basis. Net revenue increased 13.7% to 8.17 billion reais, roughly in line with the 8.13 billion expected by analysts polled by Refinitiv.
Operating margins, which had been closely watched by analysts in recent quarters amid the supply chain issues, continued to recover, with second-quarter EBITDA (earnings before interest, tax, depreciation and amortisation) margin up 490 basis points year-on-year to 22.4%.
“We remain confident in our strategy,” WEG’s top management said in a statement. “We believe that our long-term vision, financial flexibility and constant search for operational efficiency contribute to continuous and sustainable growth.”
($1 = 4.8105 reais)
(Reporting by Gabriel Araujo, Editing by Louise Heavens)
