Scribd
Upload
14 views2 pages

Mills Increases 2011 Jahu Capex Budget

Mills, a Brazilian construction company, increased its 2011 capital expenditure budget for its Jahu division by 46.3% to R$199.5 million due to strong market demand and the successful opening of new branches. The total 2011 capex budget for Mills was revised upward 18.7% to R$400.3 million. The additional R$63.1 million will be used to purchase new equipment for the new Jahu branches. Mills believes that cash from operations and a recent debenture issuance will be sufficient to finance the 2011 investment plans.

Uploaded by

MillsRI
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
14 views2 pages

Mills Increases 2011 Jahu Capex Budget

Mills, a Brazilian construction company, increased its 2011 capital expenditure budget for its Jahu division by 46.3% to R$199.5 million due to strong market demand and the successful opening of new branches. The total 2011 capex budget for Mills was revised upward 18.7% to R$400.3 million. The additional R$63.1 million will be used to purchase new equipment for the new Jahu branches. Mills believes that cash from operations and a recent debenture issuance will be sufficient to finance the 2011 investment plans.

Uploaded by

MillsRI
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Press Release

Mills expands 2011 capex budget for its Jahu division


Rio de Janeiro, May 30, 2011 - Mills Estruturas e Servios de Engenharia S.A. (Mills) informs that the 2011 capex budget for the Jahu division, focusing on residential and commercial businesses, was revised upward to R$ 199.5 million an increase of 46.3% - from R$ 136.4 million due to strong market demand and the successful implementation of its new branches. Hence, Mills 2011 capex budget for organic growth will amount to R $ 400.3 million, 18.7% above the previous forecast of R$ 337.2 million. The Jahu division started its geographic expansion plan in November 2009, at which time it had only five branches located in the South and Southeast regions of Brazil. Since then, nine branches have been opened in the Southeast, Midwest, North and Northeast regions, whose aggregate revenues contributed, 30% of the total revenue for the Jahu division in the first quarter of 2011. In addition to these branches, we will open another three new branches for the Jahu division in the second half of 2011. The capex increment of R$ 63.1 million will be dedicated to the purchase of new equipment, mainly to supply the new branches. The demand in the residential and commercial construction market continues strong. The utilization rate remains above the normal level of 75%, in an ascendant trend, despite the significant increase in the volume of equipment in this division in the last months. The revised capex for 2011 is part of our plan to invest R$ 1.1 billion over the 2010-2012 period. We believe that cash generated by our operations and the recent debenture emission totaling R$ 270 million will be sufficient to finance Mills forecast investments for 2011. 2011 Budget capex per division
2011 Budget Capex R$ % millions 39.9 199.5 24.8 128.9 7.2 400.3 10.0% 49.8% 6.2% 32.2% 1.8% 100.0%

In R$ millions

Heavy Construction Jahu - Residential and Commercial Industrial Services Rental Corporation Total

For further information, contact: +55-21-2123-3700 ri@[Link]

Alessandra Gadelha IR Officer


agadelha@[Link]

Camila Conrado Investor Relations


cconrado@[Link]

This press release may include declarations about Mills expectations regarding future events or results. All declarations based upon future expectations, rather than historical facts, are subject to various risks and uncertainties. Mills cannot guarantee that such declarations will prove to be correct. These risks and uncertainties include factors related to the following: the Brazilian economy, capital markets, infrastructure, the real estate and oil & gas sectors, among others, and governmental rules that are subject to change without prior notice. To obtain further information on factors that may give rise to results different from those forecast by Mills, please consult the reports filed with the Brazilian Comisso de Valores Mobilirios (CVM).

You might also like