OREANDA-NEWS. March 31, 2011. Paranapanema S.A. ("Company"'), a company listed in the Level 1 of Corporate Governance of BM&FBovespa (Ticker Symbol: PMAM3), leader in the copper industry in Brazil, hereby notifies the shareholders and the market that a Meeting of the Board of Directors held on this date approved the proposal for the payment of dividends of BRL 70.2 million, of which BRL 11.3 million are mandatory dividends of 25% of the net profit of the period, with the allocation of the remaining profit of BRL 58.9 million being subject to a resolution from the Annual Shareholders Meeting to be held on April 29, 2011. Such proposal was prepared after the analysis of the Management Report and Financial Statements accompanied by the Opinion from the Independent Auditors in connection with the fiscal year ended on December 31, 2010.

New cycle: distribution of dividends after 15 years demonstrates a positive scenario and reinforces the shareholders' support of the Company's perspectives

If the allocation of income of the fiscal year is approved in the Annual Shareholders Meeting, the distribution of dividends may reach the equivalent of BRL 0.22 per share.

The shareholders that will be entitled to such dividends are those registered with the Company's records on April 29, 2011, the date on which the Annual Shareholders Meeting will be held. The Company's shares will become ex-dividend as of May 2, 2011. The dividends will be paid as of May 16, 2011, without remuneration or adjustment for inflation.

Income Forecast

Committed to transparency, Paranapanema hereby publicly discloses the 2010 income forecast. As set forth in the Calendar of Corporate Events, the Financial Statements of the fiscal year ended on December 31, 2010, will be disclosed in full on the websites of the Brazilian Securities Commission (CVM) and BM&FBovespa after the closing of the trading session of March 28, 2011, and will be published in the Company's corporate newspapers on March 29, 2011. The Financial Statements were analyzed by the Executive Board, by the Board of Directors, and opinions from the Fiscal Council and Audit Committee were issued in meetings held on this date.

Paranapanema S.A. - Consolidated

 

 

R=IFRS Resubmission

Income in BRL  thousand

2009

2010

Var. 2010/2009

Gross Revenue

2,993,556

3,749,668

25.3%

Net Revenue

2,511,913

3,192,020

27.1%

Domestic Market

1,052,205

1,918,951

82.4%

Foreign Market

1,459,708

1,273,069

-12.8%

Gross Profit

(13,484)

155,904

NS

EBIT (Business Income)

17,683

24,560

38.9%

Net Profit

197,548

47,532

-75.9%

Number of shares ex-treasury (thousand)

317,676

319,152

0.5%

EBITDA

99,745

105,570

5.8%

Net Equity

1,733,418

1,771,399

2.2%

Total Assets

3,262,314

3,728,920

14.3%