ALL: Strong Outlook

BY CHRONICLE STAFF

What do Brazilian and Argentine soybean companies have in common with Ford, Renault and AmBev? They all use the transportation network of  Brazil-based America Latina Logistica (ALL), Latin America's largest independent logistics company.

Thanks to an extensive network of railways and trucks connecting to major ports, ALL has managed to boost revenues and net income and is expected to continue doing so in the near term as well.

Last week, U.S. ratings agency Fitch upgraded its rating for the company. "The revision of the Rating Outlook to Positive reflects the company's consistent and improving operational performance, which is reflected in its cash generation measures," Fitch said in a statement Friday.

Meanwhile, investment bank HSBC, which started coverage of ALL in July, is also upbeat on the company. "ALL stands out in the Brazilian transportation sector due to its combination of strong growth potential, high and stable EBITDA margins, and lower relative risks," HSBC analyst Vanessa Ferraz said in a recent analysis. "Considering that ALL achieved the sector’s highest EBITDA margin in 2007 and has reported the most stable financial figures of any Brazilian transport company, we believe the stock represents an attractive investment option. The lower regulatory risks for the Brazilian railway business and the company’s very experienced management team underscore our preference for the name."

ALL boosted first half sales by 21.6 percent to...

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Keywords: Argentina, Brasil Ferrovias, debt, liquidity, 2008 and 2009 revenues and net income