America Latina Logistica Reports 2Q10 and 1H10 Results

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Aug 10, 2010, 07:00 ET

CURITIBA, Brazil, Aug. 10 /PRNewswire-FirstCall/ -- America Latina Logistica S.A. – ALL (BM&FBovespa: ALLL11); (OTCQX: ALLAY), Latin America's largest independent logistics company, announces its results for the second quarter and first half of 2010 (2Q10 and 1H10).

ALL's EBITDA increased 11.3% in 2Q10, from R$388.9 million to R$432.9 million, driven by higher volumes, yields and margins in Brazil and a strong volume growth in Argentina. Average yield in Brazil increased 2.9%, reflecting real price gains in our take-or-pay contracts and higher freight prices in the spot market. EBITDA margin rose 2.8 percentage points in 2Q10, from 51.9% to 54.6%. In 1H10, EBITDA grew 14.3% to R$729.4 million and margins reached 51.4%, from 48.9% in 1H09.

ALL Brazil's volume grew 3.1% in 2Q10 when measured in RTK, with a material increase in volumes when measured in tons. In 1H10, volumes increased 4.5% in Brazil, to 18,319 million RTK.

Volume in Argentina increased 16.2% in 2Q10, from 789 million RTK in 2Q09 to 917 million RTK. The volume growth was driven by the beginning of harvest season in the country and the strong crop, which is expected to increase more than 40% as compared to 2009. This market scenario creates a good short-term perspective for our business in Argentina.

Net income increased 310.6% in 1H10 to R$153.9 million, mainly driven by EBITDA increase and lower financial expenses. In 2Q10, net income increased from R$60.1 million to R$136.4 million.

Our long-term projects are developing well. The extension of our rail lines from Alto Araguaia to Rondonopolis is advancing month by month, our agreement with Rumo is already operational, and volumes should increase following the Capex schedule. Moreover, we are working strongly in infrastructural projects in the containers, terminal and mining segments.

Full information is available on ALL's IR website: www.all-logistica.com/ir

ALL will be hosting conference calls to discuss 2Q10/1H10 Results on August 12, Thursday, at 10:30 a.m. US EDT (English) and 8:30 a.m. US EDT (Portuguese). See connecting details on the Company's IR Website.

www.all-logistica.com/ir

SOURCE America Latina Logistica S.A.