Brazil's JBS Q3 earnings drop 78 percent

Brazil's JBS, the world's largest beef producer, posted Thursday (Nov 12) a 78-percent drop in its third quarter net earnings as the global financial crisis hit beef prices and cut consumption in key markets.

Despite relevant efficiency gains in the company's international operations, the impact of the global crisis over important markets led to a reduction in margins, JBS said.

An 11-percent gain in the Brazilian currency in the third quarter also reduced the company's revenues with exports from Brazil. As the dollar depreciates against the real, so does the local earning power of exports. EBITDA fell 38 percent from a year earlier to BRL292 million.

The EBITDA margin, fell to 3.5 percent from 6.1 percent a year earlier.

The weakening of the US dollar and the decline in sales prices had a negative impact on JBS's consolidated EBITDA, the company said.