Brazilian construction company Odebrecht profits fall 56 percent in 2005

24 March 2006

Sao Paulo, Brazil, 23 March – Profit in 2005 for Brazilian construction company Norberto Odebrecht fell 56 percent year on year to US$62.16 million, the company said Friday.

The increased value of Brazil’s currency, the real, which depreciated the company’s assets abroad, was one of the reasons that led to the fall in net profit, the company said in a statement.

Last year, Odebrecht’s total turnover was US$2.94 billion, an increase of 8.2 percent year on year.

Turnover abroad increased 3 percent to US$2.21 billion, in the 2005 financial year.

Foreign results represent 75 percent of the group’s total turnover, especially because of the group’s operations in the United States and Portugal, the company said.

At the end of February, the Odebrecht Group won a tender to repair one of the levees damaged by Hurricane Katrina in August last year, in the United States.

Odebrecht is the Brazilian construction company with the largest international presence as it is currently carrying out work in 14 different countries.

The group has been in the US for 15 years and is also currently involved in the expansion of Miami airport.

In Portugal, the company has carried out work on Lisbon’s Metro system, built the Vasco da Gama Bridge and around 500 kilometers of highways.

In Angola, the company is taking part in diamond mining in Catoca, the fourth largest reserve in the world, valued at around US411 billion, as well as building Angola’s first shopping center. (macauhub)