Annual Reports

 
Other

ARACRUZ CELLULOSE S A 6-K 2008
f080707b.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

United States
Securities and Exchange Commission
Washington, D.C. 20549

FORM 6-K

Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the
Securities Exchange Act of 1934

For the month of
July 2008

Aracruz Celulose S.A.

Aracruz Cellulose S.A.
(Translation of Registrant’s name into English)

Av. Brigadeiro Faria Lima, 2,277—4th floor
São Paulo, SP 01452-000, Brazil
(Address of principal executive office)

(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)

(Check One) Form 20-F þ  Form 40-F o

(Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1))

(Check One) Yes o  No þ

(Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7))

(Check One) Yes o  No þ

(Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.)

(Check One) Yes o  No þ

(If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b). 82- .)


 


        Highlights of the second quarter 2008
CFO's COMMENTS   P.2   þ Continuing strong demand led to two price increases in the 2Q08, effective April and June 1st ,
the last one fully-implemented in the Asian market. Eucalyptus market pulp demand rose by 22% - LTM3  to May, compared to the previous period.
         
GLOBAL PULP MARKET UPDATE   P.4   þ Cash flow and balance sheet currency protection strategy continues to be on course,
generating positive impacts of $50 million and $35 million, respectively, in the first half of 2008.                      
       
PRODUCTION AND SALES   P.5   þ The cash flow currency protection year-to-date represented a US$15/t benefit, based on the 2008 full-year production target.
INCOME STATEMENT 2Q08   P.6  
EBITDA ANALYSIS   P.12   þ Adjusted EBITDA for the first half of 2008 was $441 million, a 43% margin.
Including cash flow currency protection gains, it would be $491 million, representing a 48% margin.
CAPITAL EXPENDITURE   P.13   þ Adjusted EBITDA1 per ton was $291 in the 2Q08, up 7% compared to the 2Q07. Since the end of 2003, adjusted EBITDA1 per ton has risen by 30%.
STOCK PERFORMANCE   P.14  
        þ Cash production cost of $282/t in the 2Q08 was largely affected by currency appreciation ($11/t) and non-recurring events ($8/t).
DIVIDENDS   P.14  
GROWTH PLANS   P.16   þ Return on equity of 16% in the last twelve months shows the benefits from large scale and competitive capacity increases, besides a focus on cost control.
VERACEL INFORMATION   P.18  
        þ Income before taxes totaled $213 million, or $ 2.06/ADR, compared to $128 million in the 1Q08 (up 66%) and $212 million in the 2Q07.
Net income was impacted by non-cash charges relating to deferred income taxes, due to exchange rate volatility.
ECONOMIC & OPERATIONAL DATA   P.28  
        þ Final Board approval for Guaíba expansion (mill construction just started). Veracel II start-up could be brought forward to 2011 (Board approval expected in 2009).
Location of the 3rd expansion project expected to be disclosed in the 3Q08 (start up in 2015).
Additional information: (55-11) 3301-4131  
André Gonçalves        
Luiz Mauricio Garcia      
invest@aracruz.com.br      
Conference Call: July 7, 2008 -      
12:00 a.m.(US EST). To join us, please dial:  
+1 (334) 323-7224 Code: Aracruz      
The call will also be web cast on Aracruz's  
website: www.aracruz.com.br/ir      
       

     Aracruz – Summary                         2 Q08   2 Q08                  
        Unit of                                                
            2 Q08   1 Q08   2 Q07   vs.     vs.     1 H08   1 H07   LTM  
        Measure                                                
                              1 Q08   2 Q07                  
Net revenue   $ million   538.4     484.2     494.2     11 %   9 %   1,022.6     889.6     2,016.8  
Adjusted EBITDA (including Veracel) 1   $ million   225.0     216.3     225.8     4 %   -     441.3     426.2     902.1  
Adjusted EBITDA margin (including Veracel) 1 percentage   42 %   45 %   46 %   (3 p.p.)   (4 p.p.)   43 %   48 %   45 %
Income before taxes, minority interest and                                                    
equity in the results of affiliated companies   $ million   212.8     128.2     212.0     66 %   -     341.0     355.4     647.6  
                  Current income tax   $ million   12.8     11.0     12.8     -     -     23.9     33.8     31.4  
                  Deferred income tax   $ million   107.0     1.6     54.1     -     -     108.6     70.2     194.4  
Net Income   $ million   71.3     116.9     122.5     (39 %)   (42 %)   188.2     222.1     388.2  
Earnings per ADR 3   $ per ADR   0.69     1.13     1.19     (39 %)   (42 %)   1.83     2.16     3.77  
Adjusted pulp sales volume 2   '000 tons   773     731     832     6 %   (7 %)   1,504     1,508     3,099  
Paper sales volume   '000 tons   15     13     15     15 %   -     29     30     58  
Pulp production volume (including Veracel)   '000 tons   788     794     763     (1 %)   3 %   1,582     1,547     3,130  
Total debt (including Veracel)   $ million   1,951.9     1,722.5     1,605.6     13 %   22 %   -     -     -  
Net debt (including Veracel)   $ million   1,328.3     1,158.2     1,104.8     15 %   20 %   -     -     -  

1 See page 24 for discussion of non-GAAP measurements used in this press release. – 2 Aracruz sales plus 50% of Veracel's sales to non-affiliated parties (see breakdown on page 6). – 3 ADR = American Depositary Receipts.

Aracruz Celulose S.A. (NYSE: ARA) presents its consolidated second quarter 2008 results, according to US GAAP and
stated in US dollars. The company uses the equity method of accounting for Veracel Celulose S.A., in which it owns a 50%



 

"In the second quarter of 2008, market conditions continued to be tight, with two new pulp price

CFO's comments

increases announced, one starting in April, for all regions, and the other coming into effect in June for the Asian market (fully implemented) - for more information see the "Global Pulp Market Update" section. Pulp production in the second quarter was 3.3% higher than in the same period of 2007 and stable compared to the 1Q08, despite the 10-day annual maintenance downtime at Veracel in April and at the Barra do Riacho unit's fiberline "B". The 10-day annual maintenance downtime at Guaíba unit is scheduled for the 3Q08 and for the Barra do Riacho fiberlines "A" and "C", the downtime will occur only in the 1Q09. The sales volume in the 2Q08, at 773,000 tons, was 6% higher than in the 1Q08 and 7% below the same period of last year, as the sales volume for that period (2Q) was unusually high.

The cash production cost for the 2Q08, at $282/t, was 16% higher to that of the previous quarter, mainly due to the continuing appreciation of the real against the dollar (5% average), the higher wood cost (mainly due to the greater distance) and the higher cost of raw materials, mainly energy and chemicals, as well the problems that we had with Veracel's turbogenerator. A failure in the lubrication system, during its assembly, caused the equipment to remain idle for 75 days. The resulting need to buy electricity at the market price led to an increase in the consolidated cash production cost.

The impact of the higher electricity consumption and higher cost of chemicals, due to the stoppage of the turbogenerator at Veracel, coupled with the maintenance downtime effect on Veracel and fiberline "B" in the 2Q08 was around to $8/t. This should ease in the 3Q08, as Veracel's cash production was normalized at the end of the 2Q08 and a similar capacity under maintenance downtime will be observed only in the 1Q09.

The adjusted EBITDA for the 2Q08 was US$ 225 million (42% margin), $8.7 million above that of the previous quarter, mainly due to the higher net pulp price and higher sales volume, partially offset by the higher cash production cost at Veracel. Excluding the negative impact of the turbogenerator on Veracel's EBITDA, which affected Veracel's cash production cost of chemicals and energy, in addition to yielding lower net operating revenues from energy sales, Aracruz's adjusted EBITDA margin would be 140 bps higher. For the last twelve months, the adjusted EBITDA was $902 million, a 45% margin. Despite the impact of a 45% stronger R$ against the US$ and 28% domestic inflation on our cost structure since the end of 2003, which has been one of the main reasons for the stability of the EBITDA margin in the low 50's/high 40's, the EBITDA/ton has increased by 30% over the same period, from $224/t in the 4Q03 to $291/t in the 2Q08, demonstrating that the company has benefited from the higher net pulp prices and the competitive additional capacity. Besides profitability, the company has also been delivering quite reasonable returns, given that the Return on Equity has averaged 15% over the same period, increasing from 8% in 2003 to 18% in 2007.


We increased the level of our cash flow currency protection to a short position of $360 million at the end of the 2Q08 ($270 million at the end of the 1Q08), representing 6 months of future exposure, which generated a positive impact of $46 million in the quarter. In the first half of the year, the cash flow protection provided a gain of $15/t (when divided by the targeted full year production volume),

ARACRUZ RESULTS - SECOND QUARTER 2008 2



thereby mitigating the negative impact of the Brazilian currency's appreciation against the dollar. We also continued to swap financial liabilities from "TJLP plus spread" into "dollar coupon" fixed rates, which generated a positive impact of $27 million in the 2Q08. The gains on the short position in dollars and the interest rate swaps have been recorded in the income statement under financial income.

Since 2005, the company has elected to pay income tax and social contribution on Brazilian GAAP (BR GAAP) exchange gains and losses when these are realized, rather than when they are accrued. This allows the company to defer payments on Brazilian GAAP (BR GAAP) currency variations.

As a result, the tax of which payment is postponed is accumulated as deferred income tax and social contribution until realization of the taxable exchange gain or loss. These deferred tax balances may increase or decrease as underlying exchange rates fluctuate and result in further respective exchange gains or losses. They should become payable in accordance with foreign debt repayments up to 2016, if not reversed by future BR GAAP foreign currency variations.

The income tax provision was affected by the impact of changes in the local currency’s exchange rate against the dollar on Brazilian GAAP figures. In this quarter, the income tax was equivalent to 56% of the pre-tax profit, mainly explained by the non-cash deferred taxes (50% deferred income tax and 6% current income tax). Income before taxes totaled $213 million, or $ 2.1/ADR, compared to $128 million in the 1Q08 and $212 million in the 2Q07, an increase of 66% over the 1Q08 figure. Our net income in the 2Q08 totaled $71 million, equivalent to $0.69 per ADR, respectively 39% and 42% lower than in the 1Q08 ($1.13/ADR) and the 2Q07 ($1.19/ADR) .

In light of the continued impact of global inflation and the weaker US dollar, we believe that the best way to reduce costs and improve profitability in the near future is by gaining scale through competitive growth plans and sustaining the competitiveness of our current operations.

To retain the company’s position as having the industry’s lowest cost of production, beginning in the 3Q08, the Barra do Riacho unit’s fiberline “A” will get a revamp, with investment mainly in the Bleaching area. The technological upgrade will yield an estimated cost reduction of US$5/t at the Barra do Riacho unit, particularly in terms of lower consumption of chemicals and electricity. The expected internal rate of return on the project will be higher than the company’s WACC, and the total Capex will be US$ 130 million. The project is forecast to be completed in the second half of 2010.

On April 15th, Aracruz announced the final Board approval to its expansion in Rio Grande do Sul. The Company received the Implementation License for the plant on July 1st, which enable the start up of the mill construction. The main packages process for the project were acquired in EPC supply regime. Up to the end of June, the initial phase, involving the acquisition of land, has provided 75% of the total area required, and this year we expect to conclude the land acquisitions.

Aracruz, together with its partner Stora Enso, will also give the greatest importance to expanding the production capacity of the Veracel plant, in Bahia, with the construction of a second production line, with an annual capacity of around 1.4 million tons, which could come into production at the beginning of 2012, or even be brought forward to the end of 2011. By the end of the 2Q08, taking into consideration the land productivity gains from Veracel’s first fiberline, almost 50% of the total land and forest to support the expansion project had already been committed.

The expansion of the capacity of the Guaíba unit and at Veracel will both contribute towards realizing Aracruz's strategy for sustainable growth, aimed at supplying 25% of world hardwood market pulp demand - equivalent to approximately 7 million tons a year - by the year 2015. To this same end, Aracruz also intends to announce, in the 2H08, the conclusion of the feasibility studies for a third expansion project in Brazil."

Isac Zagury - CFO

ARACRUZ RESULTS - SECOND QUARTER 2008 3



Global pulp market

Recent information indicates that overall world economic activity continues to expand. This is a partial reflection of some firming in household spending in the United States, even though labor markets have softened further and financial markets remain under considerable pressure, so the positive

update

fundamentals in the pulp and paper industry are still being sustained.

The growth in global demand for printing and writing papers remains in line with that of 2007. Price increases have been taking place in key regions. These increases are a result of stronger demand, mainly in Asia, and a reflection of the reorganization of the paper industry, both in Europe and in the United States. On the tissue side, demand continues its steady growth in the U.S Year-to-date figures show an increase of 2.5% up to April, even with slower growth in the global GDP.

After the first 5 months of 2008, world market pulp demand has grown by 5.5%, to 17.3 million tons, according to the PPPC (Pulp and Paper Products Council) World -20 Report. Eucalyptus demand continues to be the strongest among all grades of market pulp. By the end of May, eucalyptus demand already represented 30% of the total market pulp consumed, which is equivalent to an increase of 908,000 tons, or 22%. As with all other grades, China is the region where eucalyptus consumption has increased the most, seeing a jump of 66% in 2008. Market pulp demand holds strong as summer vacations arrive in the northern hemisphere.


BEKP Pulp Demand by Region
% growth - 5 months 2008 vs. 2007

Practical production problems remain in several regions. In the Scandinavian countries, wood supply problems have continued, partly due to the mild winter weather and partly to the increasing export duties on wood, in addition to some wood-supply related downtime. The impact of recent BSKP mill closures has not yet affected the markets, as inventories continue to be run down. In Indonesia, some cutting of the mixed tropical hardwood was again allowed in most regions, but in practice, wood supply constraints still continued, caused by the rainy season.

World market pulp producers’ inventories have been within the normal range, having closed in May at 32 days of supply. On the consumer side, European stocks fell in May, holding at 27 days of supply.

ARACRUZ RESULTS - SECOND QUARTER 2008 4



With summer just beginning in the northern hemisphere, pulp producers are either just coming off maintenance downtime, or are in the middle of it. Others are about to embark on their July and August annual shutdowns. According to analysts, the expectation is that 1.5 million tons could leave the market through the 3Q08, taking into account both maintenance downtime and closures.

The twelve-month Chinese chemical market pulp imports reached a record of 7.3 million he end of May. As shown in the graph below, Chinese imports continue to grow month after month, but still represent only 14% of world total market pulp demand. Latin America is the major hardwood supplier to the Chinese market, accounting for 43% of the total market pulp hardwood imported by that country in 2008.

Chinese Market Pulp Imports

 

Supply and demand fundamentals remain balanced and we do not expect to see any change in the near future, given the higher pulp demand, along with the expected additional closures, on top of those already announced, and the planned maintenance downtime in the second half of 2008

Production

Aracruz pulp production, without the 50% of Veracel, totaled 668,000 tons in the second quarter of 2008, compared to 649,000 tons in the 1Q08 and 637,000 tons in the 2Q07. There was a 10-day

and Sales

maintenance downtime at the Barra do Riacho unit’s fiberline "B" in June, and the company decided to bring the maintenance downtime at the Guaíba unit forward to the third quarter - it was previously scheduled for the fourth quarter. Maintenance downtime for the fiberlines "A" and "C" will occur in the 1Q09.

During the second quarter, Veracel Celulose S.A. (50% owned by Aracruz) produced 240,000 tons of pulp, of which 139,000 tons were sold to Aracruz. Veracel’s pulp production in the last twelve months totaled 1,069,000 tons, 19% above the plant's nominal capacity. There was a 10-day maintenance downtime at Veracel in April.


ARACRUZ RESULTS - SECOND QUARTER 2008 5



At the Guaíba unit, paper production in the quarter totaled 14,000 tons, consuming approximately 11,000 tons of the pulp produced. Paper inventories were at 1,000 tons at the end of June 2008, while paper sales in the second quarter of 2008 totaled 15,000 tons.

Aracruz pulp sales totaled 773,000 tons in the second quarter, with 642,000 tons of the pulp being produced internally, at the Barra do Riacho and Guaíba units, and 131,000 tons being supplied by Veracel and resold in the market by Aracruz.

At the end of June, inventories at Aracruz stood at 438,000 tons, representing 48 days of production, compared to 414,000 tons at the end of March 2008. The inventory level at Veracel, at the end of June 2008, represented an additional one day of production for Aracruz. This total of 49 days is still below the normal level of 52 days.

Income Statement

2Q08

Total net operating revenue came to $538.4 million, $44.2 million higher than in the 2Q07 and $54.2 million higher than in the 1Q08.

Net paper operating revenue in the quarter amounted to $18.5 million, $2.4 million higher than in the same period of 2007 and $3.1 million higher than in the 1Q08.

Net pulp operating revenue during the quarter amounted to $514.4 million, compared to $474.8 million in the same period of last year. This revenue increased mainly as a result of 17% higher net pulp prices, partially offset by a 7% lower sales volume. When compared to the 1Q08 revenue, of


ARACRUZ RESULTS - SECOND QUARTER 2008 6



$463.3 million, the $51.1 million increase was the result of a 6% higher sales volume, due to seasonal sales factors, and 5% higher net pulp prices.

The total cost of sales in the second quarter of 2008 was $348.5 million, compared to $313.0 million in the same period of the previous year, mainly due to an 18% higher cost of pulp sold, on a per ton basis, partially offset by a 7% lower pulp sales volume. When compared to the total of $318.5 million in the first quarter of 2008, the increase was mainly due to a higher sales volume (+6%).

 Cost of goods sold – breakdown   2Q08    1Q08   2Q 07
Pulp produced   65.5 %   64.6 %   65.7 %
Pulp purchased   15.7 %   17.8 %   17.0 %
Inland and ocean freight, plus insurance   14.7 %   13.6 %   13.5 %
Paper produced   3.2 %   3.0 %   3.2 %
Port services   0.9 %   1.0 %   0.6 %

Note: "Pulp purchased" refers to pulp produced by Veracel, transferred to Aracruz and subsequently resold by Aracruz to the final customer.

(US$ per ton)   2Q08   1Q08   2Q07
Aracruz Pulp production cost   372     346     314  
Aracruz Pulp cash production cost:                  
             Barra do Riacho and Guaíba units only   289     256     232  
             Barra do Riacho and Guaíba, plus 50% of Veracel   282     243     223  

Note: Does not include gains from transactions carried out for the purpose of cash flow currency protection.

A detailed analysis of the cash production cost, including our portion of Veracel's figures, is provided below, on a weighted average basis.

Barra do Riacho and Guaíba units, plus 50% of Veracel - 2Q08 vs. 1Q08   US$ per ton
1Q08 - Cash production cost   243
Brazilian currency appreciation against the US dollar   11
Higher wood cost - mainly due to higher transportation cost   10
Higher cost of raw materials - mainly chemicals   8
Higher energy cost due to problems with the turbo-generator at Veracel.   6
Lower dilution of fixed costs - maintenance downtime at Veracel and fiberline "B"   2
Other   2
2Q08 - Cash production cost   282

A failure in the lubrication system of Veracel’s turbo-generator, during its assembly, caused the equipment to remain idle for 75 days. The resulting need to buy electricity at the market price led to an increase in the consolidated cash production cost.

ARACRUZ RESULTS - SECOND QUARTER 2008 7



Barra do Riacho and Guaíba units , plus 50% of Veracel - 2Q08 vs. 2Q07   US$ per ton
2Q07 - Cash production cost   223
Brazilian currency appreciation against the US dollar   38
Higher cost of raw materials - mainly natural gas, BPF oil and chemicals   16
Higher energy cost mainly due to problems with the turbo-generator at Veracel   3
Other   2
2Q08 - Cash production cost   282

Approximately 75% of the company's cash production cost is presently correlated to the local currency (real - R$).

Sales and distribution expenses came to $24.6 million, $3.1 million higher than in the 2Q07, mainly due to the impact of the appreciation of the real against the dollar on pulp-loading expenses, partially offset by an 7% lower sales volume. The figure was up $3.0 million compared to the 1Q08, mainly due to a 6% higher sales volume and changes in the geographical sales mix.

Administrative expenses came to $18.5 million, compared to $15.5 million and $13.5 million in the 2Q07 and 1Q08, respectively. When compared to the 2Q07, there was the negative impact of the 16% appreciation of the real against the dollar (average exchange rate), and higher services expenses. Compared to the 1Q08, besides the negative impact of the 5% appreciation of the real against the dollar (average exchange rate), there were higher expenses in relation to our advertising campaign, higher labor expenses from a reversal in the provision for a long-term bonus in the first quarter, and higher services expenses.

The other net operating result was an expense of $5.0 million in the 2Q08, compared to an expense of $9.2 million in the 1Q08, mainly due to the $9.0 million reversal of a tax loss contingency generated in 1992 and 1993, during a tax benefit program for export companies, as result of a favorable administrative decision, partially offset by a higher provision for ICMS tax credits. When compared to the 2Q07, the credit of $24.0 million in that period was mainly due to the $23.4 million reversal of an ICMS tax credit provision in that quarter.

The sum of the financial and currency re-measurement results in the quarter showed a net credit of $71.0 million, compared to a net credit of $43.8 million in the same period of last year and a net credit of $6.8 million in the first quarter of 2008 (see table below).

(US$ million)   2 Q08   1 Q08   2 Q07
Financial Expenses   18.7     21.3     19.3  
     Interest on financing   21.9     21.9     21.0  
     Interest on tax liabilities / other   (3.2 )   (0.6 )   (1.7 )
Financial Income   (100.8 )   (28.8 )   (62.9 )
     Interest on financial investments   (14.3 )   (13.3 )   (21.3 )
     BM&F (dollar), swap results and other   (72.3 )   (13.1 )   (39.5 )
     Other   (14.2 )   (2.4 )   (2.1 )
Currency re-measurement - (gain)/loss   11.1     0.7     (0.2 )
Total   (71.0 )   (6.8 )   (43.8 )

The "Financial expenses" in the 2Q08 registered a net expense of $18.7 million, compared to net

ARACRUZ RESULTS - SECOND QUARTER 2008 8



expenses of $21.3 million and $19.3 million in the 1Q08 and 2Q07, respectively.

The "Financial Income" in the quarter was $72.0 million higher than in the 1Q08, mainly due to the favorable results of our gains on derivative transactions, which amounted to $72.3 million in the 2Q08 (1Q08: $13.1 million). When compared to the same period of last year, the figure was $37.9 million higher, mainly due to higher gains on derivative transactions (2Q07: $39.5 million) and the higher average cash balance.

Protecting the company's exposure to the local currency, according to the financial policy approved by the Board and outlined on Aracruz's website, the management maintained its strategy of hedging the cash flow and balance sheet exposure to the local currency, using derivative instruments to protect against foreign exchange and local interest rate exposure.

Cash flow / balance sheet                                    
currency protection results   2Q08 YTD     1 Q08   4Q07 YTD     3Q07 YTD     2Q07 YTD     1 Q07
1- Dollar - short position (US$ MM)   50     4     94     79     55     20  
       US$/ton   15     1     30     25     17     6  
2- Swap TJLP vs dollar/other (US$ MM)   35     9     2     13     18     13  
TOTAL (1 + 2)   85     13     96     92     73     33  
Exchange Rate (R$ / US$) - closing   1.5919     1.7491     1.7713     1.8389     1.9262     2.0504  
       % change   -9.0 %   -1.3 %   -3.7 %   -4.5 %   -6.1 %   -4.1 %

As Brazilian currency loans create exposure for any company that uses the US dollar as its functional currency (98% of Aracruz's revenues are linked to the US dollar), a sum equivalent to US$ 387.2 million has been swapped from "TJLP plus spread" (real denominated) into "dollar coupon" (dollar denominated), at a fixed interest rate of approximately 4.3% p.a., which has generated a positive impact of US$ 34 million over the year-to-date.

The company has also been protecting its cash flow exposure to the local currency by taking short positions in dollars, which involves negligible transaction costs and has a positive carry. At the end of the quarter, the cash flow currency protection was increased, through a short position in dollars totaling US$ 360 million, which represented approximately 6 months of cash flow exposure to the local currency (real - R$).

The cash flow currency protection transaction results accumulated in 2008, showing a gain of $50 million, would be equivalent to approximately $15/t, if divided by the 2008 production volume target of 3.3 million tons of pulp (including volumes from Veracel). – It is important to mention that this is not a guarantee of future performance.

Such contracts do not qualify for hedge accounting under USGAAP.

ARACRUZ RESULTS - SECOND QUARTER 2008 9



The gains on the short position in dollars and the interest rate swaps have been recorded in the income statement under financial income.

The equity result showed a loss of $18.0 million from Veracel (see the Veracel Information section for more details).

Income tax and social contribution accruals in the second quarter amounted to an expense that was $52.9 million higher than that of the 2Q07, mainly due to the greater impact of the Brazilian currency's appreciation against the US dollar on the BRGAAP financial results (2Q08: 9.0%; 2Q07: 6.1%) and higher gains on cash flow and balance sheet currency protection transactions (2Q08: $72.3 million; 2Q07: $39.5 million), partially offset by the lower operating profit. Compared to the 1Q08, the tax accrual was up by $107.2 million, due to the increased impact of the Brazilian currency's appreciation against the US dollar on the BRGAAP financial results (2Q08: 9.0%; 1Q08: 1.3%) and higher gains on cash flow currency protection transactions (2Q08: $72.3 million; 1Q08: $13.1 million), partially offset by the higher declaration of interest on stockholders' equity (2Q08: R$85 million; 1Q08: R$70 million).

Since 2005, the company has opted to make cash settlement of income tax and social contribution liabilities, arising from currency variations, in the period that the underlying assets/liabilities are settled, and not in the period that such tax liabilities arise. This allows the company to defer tax payments on currency variations reported in the Brazilian financial statements and denominated in reais (BR GAAP).

A statement of the deferred income tax, broken down to show the Brazilian GAAP currency variation impact, and current taxes, is provided below.

(US$ million)   2Q08     1Q08     2Q07  
INCOME TAX & SOCIAL CONTRIBUTION   119.8     12.6     66.9  
 Deferred income tax   107.0     1.6     54.1  
           BR GAAP exchange rate impact   81.9     10.0     37.1  
           Other   25.1     (8.4 )   17.0  
 Current income tax   12.8     11.0     12.8  

At the end of the second quarter, the net balance of deferred taxes payable, deriving from the BR GAAP exchange rate impact, amounted to $281 million (1Q08: $199 million). These should become payable in accordance with foreign debt repayments up to 2016, if not reversed by future BR GAAP

ARACRUZ RESULTS - SECOND QUARTER 2008 10



    foreign currency variations.                            
Debt and Cash   The company's total debt amounted to $1,621.9 million at the end of June 2008, $222.3 million  
Structure   higher than at the end of March 2008 and $360.3 million higher than at the end of June 2007.  
                          June 30,     March 31,     June 30,  
     (US$ million)                                    
                          2008     2008     2007  
           Short-term debt                 109.7     95.2     83.4  
                   Current portion of long-term debt             92.0     82.7     74.2  
                   Short term debt instruments             6.3     5.7     -  
                   Accrued financial charges             11.4     6.8     9.2  
           Long-term debt                 1,512.2     1,304.4     1,178.2  
           Total debt                     1,621.9     1,399.6     1,261.6  
           Cash, cash equivalent and short-term investments     (622.2 )   (563.9 )   (500.2 )
     NET DEBT OF ARACRUZ                 999.7     835.7     761.4  
           50% of Veracel's cash, cash equivalent and investments     (1.4 )   (0.3 )   (0.5 )
           50% of Veracel's total debt             330.0     322.8     343.9  
     50% OF VERACEL'S NET DEBT             328.6     322.5     343.4  
    NET DEBT INCLUDING 50% OF VERACEL         1,328.3     1,158.2     1,104.8  
    The local currency debt corresponds basically to long-term BNDES (Brazilian Development Bank)  
    loans. The debt maturity profile, as at June 30, 2008, was as follows:              
     (US$ million)       Aracruz               Aracruz + 50% of Veracel  
        Local   Foreign   Total         50 % of            
                    %           Total Debt     %  
        Currency Currency   Debt         Veracel's debt              
    2008   46.2   16.5   62.7   3.9 %   35.8     98.5     5.0 %
    2009   47.3   20.4   67.7   4.2 %   65.7     133.4     6.8 %
    2010   20.2   13.3   33.5   2.0 %   62.1     95.6     4.9 %
    2011   20.2   14.1   34.3   2.1 %   66.6     100.9     5.2 %
    2012   18.9   74.7   93.6   5.8 %   65.5     159.1     8.2 %
    2013   38.2   420.8   459.0   28.3 %   33.3     492.3     25.2 %
    2014   107.2   321.6   428.8   26.4 %   1.0     429.8     22.0 %
    2015 onwards   118.2   324.1   442.3   27.3 %   -     442.3     22.7 %
    Total   416.4   1,205.5   1,621.9   100.0 %   330.0     1,951.9     100 %

With regard to liability management, the gross debt maturity profile at the end of June, including our share in Veracel, was at 59 months. The "net debt to the last twelve months' adjusted EBITDA" ratio was 1.47x.

ARACRUZ RESULTS - SECOND QUARTER 2008 11



Debt structure   Principal    % of         Average     Average remaining
(not including Veracel's figures)   (US$ million)    total         interest rate     term (months)
Floating rate (spread over Libor - % p.a.)   1,089   68 %       0.78 %   71
   Trade Financing   1,089   68 %       0.78 %   71
Floating rate (% p.a.)   450   28 %             56
   BNDES - Local currency   408   25 %   TJLP   (²) + 2.43%     56
   BNDES - Foreign currency (currency basket)   42   3 %   (¹) +   2.46 %   52
Fixed rate (% p.a.)   68   4 %             35
   Export Credit Notes   62   4 %       5.985 %   38
   Rural Credit   6   -         6.75 %   2
Total   1,607   100 %             65

(1) BNDES's interest rate for foreign currency contracts; (²) Brazilian long-term interest rate.

Cash, cash equivalent and short-term investments, at the end of the quarter, totaled $622.2 million, of which $492.1 million was invested in Brazilian currency instruments and $130.0 million was invested in US dollar instruments. Of the total amount at the end of the quarter, 89% was invested locally and 11% was invested abroad.

Net debt (total debt less cash holdings) amounted to $999.7 million at the end of the quarter, $164.0 million higher than at the end of the previous quarter, mainly due to positive operational cash generation, partially offset by $172.1 million of capital expenditure, $25.6 million of capital increase in affiliated companies and $160.4 million of Interest on Stockholders’ Equity and dividends.

EBITDA

Analysis

Adjusted EBITDA / t

Even considering the impact of the a 45% stronger R$ and 28% domestic inflation on our cost structure since 2003, which has been one of the main reasons for the stability of the EBITDA margin at the low 50's-high 40's, the EBITDA/t has increased by 30% over the same period, from $224/t in the 4Q03 to $291/t in the 2Q08, proving that the company has been benefiting from the higher net pulp prices and the competitive capacity addition.


- Adjusted EBITDA comparison 2Q08 vs. 2Q07 (not including the results of cash flow currency protection ) The second quarter 2008 adjusted EBITDA, including 50% of Veracel, totaled $225.0 million (42% margin), compared to $225.8 million for the same period of last year. This was mainly a consequence of the positive impact of higher average net pulp prices (17%), offset by the lower sales volume (7%), higher cash COGS/t (23%), the last one mainly due to the Brazilian currency's appreciation against the dollar.

ARACRUZ RESULTS - SECOND QUARTER 2008 12



- Adjusted EBITDA comparison 2Q08 vs. 1Q08 (not including results of cash flow currency protection )

The second quarter 2008 adjusted EBITDA of $225.0 million (42% margin), including 50% of Veracel, was $8.7 million higher compared to the 1Q08. This was mainly due to a higher pulp sales volume (6%) and higher average net pulp prices (5%), partially offset by higher cash COGS/t (5%) Adjusted EBITDA for the first half of 2008, including cash flow currency protection gains would be $490.9 million, representing a 48% margin.

Capital   Capital expenditure and investment were as follows:                
Expenditure -   (US$ million)   2Q08         1H08  
Realized          Silviculture   45.9         91.6  
           On-going industrial investment   11.8         19.1  
           Forest and land purchases   66.4         79.8  
           Other forestry investments   12.9         23.1  
           Barra do Riacho unit optimization   7.1         16.8  
           Portocel - private port terminal   11.5         17.9  
           Miscellaneous projects   16.5         21.7  
           Total Capital Expenditure   172.1         270.0  
           Aracruz capital increase in affiliated companies   25.6(1)         38.3  
           Total Capital Expenditure and Investment   197.7         308.3  
    (1) mainly used to pay down debt .                

Capital                            
Expenditure -   (US$ million)   2H08E            2009E   2010E     2011E  
Forecast         Guaíba expansion project - mill construction   180   810   630     180  
          Guaíba expansion project - logistic infrastructure   13   57   57     44  
          New land and forest development to support future expansion   297   64   49     -  
          Fiberline "A" revitalization   27   76   27     -  
          Portocel - private port terminal   25   -   -     -  
          Regular investment (Barra do Riacho and Guaíba) - including silviculture, mill   105   200   210     240  
    maintenance and corporate investment                    
          Other   31   -   -     -  
    Sub-total - (Aracruz only)   678   1.207   973     464  
          50% new land and forest development to support Veracel expansion   44   41   42     24  
          50% of the regular investment to be made by Veracel (Aracruz's stake)   16   31   36     29  
          Other (forest roads & equipment, new nurseries, etc.)   21   -   -     -  
    Total - including Aracruz's stake in Veracel   759   1.279   1.051     517  

The forecast capital expenditure, also showing 50% of Veracel's figures, is as follows:

Note: Forecast investments do not include the industrial capital expenditure on expansion projects, such as for Veracel II and the third expansion project.

ARACRUZ RESULTS - SECOND QUARTER 2008 13



Stock

From June 30, 2007 to June 30, 2008, Aracruz's ADR price increased by 11%, from $66.24 to $73.39. Over the same period, the Dow Jones Industrial Average index declined by 15% and the S&P Paper

Performance

and Forest index fell by 37%.


                 Average daily trading volume      
           Stock Price Performance - through June 30, 2008       (US$ million - NYSE + Bovespa)      
        (Base 100 = June 30, 2007)                   49  
150                       41      
        111           26          
100                              
        85   11    14              
        63                      
50                              
            2004   2005   2006   2007   2008 YTD
    06/2007      07/2007 08/2007 09/2007 10/2007 11/2007 12/2007 01/2008 02/2008 03/2008 04/2008 05/2008 06/2008                      
        ARACRUZ ADR Dow Jones Industrial S&P Paper and Forest                      

Stock information   June 30, 2008
Total number of shares outstanding   1,030,587,806
Common shares   454,907,585
Preferred shares   575,680,221
ADR Ratio   1 ADR = 10 preferred shares
Market capitalization   $7.6 billion
Average daily trading volume – 1H08 (Bovespa and NYSE)*   $49 million
*Source: Reuters    

Results According to

The local currency consolidated result, according to Brazilian GAAP - the accounting principles adopted in Brazil, was a net income of R$262.1 million for the quarter. Aracruz has publicly released the unconsolidated financial results in Brazil, which under Brazilian GAAP serve as the basis for the

Brazilian GAAP

calculation of minimum dividends and income taxes. In the second quarter of 2008, Aracruz Celulose S.A. reported an unconsolidated net income of R$250.8 million (net income of R$331.2 million, excluding equity results).

Dividends/

In the 1st half of 2008, a total amount of R$155 million was declared as Interest on Stockholders’ Equity, in anticipation of the annual dividend for the fiscal year 2008, with R$70 million declared on

Interest on Stockholders' Equity

March 18th and R$85 million on June 20th. Also, during the period, the payment of a further R$200 million in dividends for the fiscal year 2007 was approved at the General Stockholders' Meeting in April.

Exercising the powers granted by the company’s Board of Directors, in accordance with a decision taken in a meeting held on March 13th, the Executive Board intends, in principle, to continue declare Interest on Stockholders’ Equity on a quarterly basis in 2008. The potential amount that could still be declaring, up to the end of December 2008, is governed by article 9 of Law nº 9,249/95.


ARACRUZ RESULTS - SECOND QUARTER 2008 14



Declaration   Fiscal Year     Dividends and       Gross Amount   Gross Amount   Initial Payment
              Ex-Date            
Date   of Reference     ISE (1)       (R$ thousand)   per ADR (US$)   Date on ADRs
Jun.20,2008   2008     INTEREST(1)   Jun.26, 2008   85.000   0.54   Jul. 16, 2008
Apr. 30, 2008   2007     DIVIDEND   May 5, 2008   200,000   1.19   May 21, 2008
Mar.18, 2008   2008 (*)   INTEREST(1)   Mar.26, 2008   70,000   0.41   Apr.16, 2008
Dec.21, 2007   2007 (*)   INTEREST(1)   Dec.27, 2007   78,900   0.44   Jan.16, 2008
Sep.18, 2007   2007 (*)   INTEREST(1)   Sep.26, 2007   76,000   0.40   Oct.17, 2007
Jun. 19, 2007   2007 (*)   INTEREST(1)   Jun. 27, 2007   77,000   0.41   Jul. 18, 2007
Apr. 24, 2007   2006     DIVIDEND   Apr. 25, 2007   167,000   0.83   May 16, 2007
Mar. 21, 2007   2007 (*)   INTEREST(1)   Mar. 28, 2007   67,000   0.33   Apr. 24, 2007
Dec. 22, 2006   2006 (*)   INTEREST(1)   Dec. 27, 2006   75,000   0.35   Jan. 19, 2007
Sep. 19, 2006   2006 (*)   INTEREST(1)   Sep. 27, 2006   80,000   0.38   Oct. 17, 2006
Jun. 20, 2006   2006 (*)   INTEREST(1)   Jun. 28, 2006   74,000   0.33   Jul. 20, 2006
Apr. 28, 2006   2005     DIVIDEND   May 3, 2006   150,000   0.72   May 11, 2006
Mar. 23, 2006   2006 (*)   INTEREST(1)   Mar. 30, 2006   89,000   0.42   Apr. 20, 2006
Dec. 20, 2005   2005 (*)   INTEREST(1)   Dec. 28, 2005   168,800   0.72   Jan. 13, 2006
Jun. 20, 2005   2005 (*)   INTEREST(1)   Jun. 28, 2005   28,000   0.12   Jul. 13, 2005
May 19, 2005   2005 (*)   INTEREST(1)   May 25, 2005   42,900   0.18   Jun. 13, 2005
Apr. 29, 2005   2004     DIVIDEND   May 2, 2005   150,000   0.60   May 9, 2005
(1) Interest on Stockholders' Equity                      
(*) advance payment of dividends                      

Dividends/Interest on Equity distribution based on the Fiscal Year
(Gross amount US$ / ADR)

ARACRUZ RESULTS - SECOND QUARTER 2008 15



Growth Plans

Aracruz plans to win a 25% share of the hardwood pulp market by 2015.

Guaíba Expansion Project

On April 15th, Aracruz announced the final Board approval to its expansion in Rio Grande do Sul. The company received its Implementation License for the plant on July 1st, which enabled the start-up of the mill construction. The project's main process packages (timber yard, cooking, washing, purifying and bleaching units, drier, evaporation unit, turbogenerator, recovery boiler, causticizing unit, and furnace) were acquired on an EPC supply basis. Up to the end of June, the initial phase, involving the acquisition of land, has provided 75% of the total area required, and this year we expect to complete the land acquisitions.

As part of the company’s strategy to enlarge the forest base in connection with the Guaíba unit’s expansion project on July 1st, Aracruz acquired the local operations of Boise Cascade do Brasil Ltda., for the sum of US$ 47.1 million. This acquisition comprises, among other assets, 10,400 hectares planted with eucalyptus and also preserved areas of native reserves.

The funding of this acquisition is included in the total forest investment for the expansion project approved by the Board of Directors. The average distance from the forest to the mill is 82 km, which is less than the average, of 120 km, that had been expected for the total forest base to supply the Guaíba unit once the project has been inaugurated.

The total Guaíba unit forest base will be increased to 160,000 hectares of eucalyptus plantations and 90,000 hectares of native reserves, constituting legal reserves and areas of permanent preservation. This total includes areas that have been leased and those under forestry contracts and producer partnerships. The total forest investment is estimated at US$ 600 million, including land acquisition, infrastructure and silviculture. By the end of the 2Q08, $ 321 million had been invested in land and forest.

Low production cost - The building project will be developed on the EPC (Engineering, Procurement and Construction) basis, with the equipment and services being sought mainly from among local suppliers. The outstanding feature of this new mill will be its low operating cost, which will make it even more competitive than the existing Veracel mill, in which Aracruz has a 50% stake. New technology and synergies will ensure this low production cost at an excellent standard of operational quality.

The new line will come into operation around the 3Q10, incorporating modern environmental technology that will translate into lower water consumption and reduced atmospheric emissions and effluents, as well as improved standards of heat and energy efficiency.

Integrated logistics - The project also provides for the upgrading of the logistics, with the adoption of waterway transportation for moving the raw material and pulp. Around 50% of the raw material will be taken to the mill by river. To this end, three waterway terminals are to be built, at Guaíba, Rio Pardo and Cachoeira do Sul.


A private maritime terminal will also be built, at São José do Norte, for the distribution of the pulp. Since the greater part of the production will be destined for Asia, this is a strategic investment that will provide a significant improvement in the quality and cost of our international logistics. A total of US$ 170 million is to be invested in logistics and infrastructure over the next few years.

ARACRUZ RESULTS - SECOND QUARTER 2008 16



Veracel II expansion project

Aracruz, together with its partner Stora Enso, has approved the commencement of a feasibility study for the construction of a second hardwood pulp production line at Veracel, in Bahia, with an annual capacity of around 1.4 million tons. The study will assess the economic, social and environmental feasibility of the project, and should be completed in 2009.

Once it has been finished, the feasibility study will be presented to the Boards of Directors of Aracruz and Stora Enso for their approval of the project’s implementation. In the event that it is approved, the second production line could come into operation by the end of 2011. The final approval will be conditional upon a favorourable market scenario and the obtaining of the necessary licenses.

The project also benefits from the excess of land arising from productivity gains, which can be utilized to supply Veracel II. These gains in productivity were achieved through technological refinements in both the silvicultural (improvements in genetics, soil and nutrition) and the industrial (reduced specific consumption) processes.

By the end of the 2Q08, approximately $ 90 million had been invested in the initial phase, involving the acquisition of land (48,000 ha) and the establishment of forests. Taking into consideration the productivity gains from the forests supplying Veracel’s first fiberline, around 50% of the total land and forest to support the expansion project is already committed. The average distance from the forest to the mill is estimated to be 76 km.

Assuming the cash cost for the expansion to be in line with that of the original fiberline implemented at Veracel, the management is seeking a return on the project of around 300 bps above WACC.

Third expansion project

In order to achieve its goal of supplying 25% of world demand for hardwood market pulp by 2015, the company expects to announce, in the 3Q08, a third expansion project, which could be a brownfield or greenfield project in Brazil. The nominal capacity of this project would be close to 1.4 million MT and the company, this year, has already started to buy land and invest in silviculture.

This project will keep Aracruz in its leading position among hardwood market pulp producers, with a total nominal capacity of 7.0 million MT of pulp produced per year by 2015.

Portocel expansion

Construction of a 3rd berth at the company's specialized Woodpulp Terminal (Portocel), at Barra do Riacho, was completed in April 2008. Dredging operations providing a minimum draft of 11.0 meters will be concluded in August 2008. These improvements will allow Portocel to receive bigger ships with better rates of quay occupancy and to increase Portocel's exporting capacity to 7.5 million tons of woodpulp per year, thus keeping the Barra do Riacho and Veracel mills self-sufficient in port infrastructure even after the Veracel expansion, planned for 2012. Moreover, Portocel will be able to increase its capacity to provide port services to other Brazilian pulp players.

Portocel is the world’s largest port specializing in shipping pulp, and is located less than one mile from the Barra do Riacho unit, giving Aracruz a huge competitive advantage to bolster its commercial strategy, focused on long-term relationships with clients.

ARACRUZ RESULTS - SECOND QUARTER 2008 17



Veracel Information

Veracel pulp production totaled 240,000 tons in the second quarter of 2008. At the end of June, inventory stood at 39,000 tons of pulp.

Veracel pulp sales totaled 264,000 tons in the second quarter, of which 139,000 tons went to Aracruz, 124,000 tons went to the other controlling shareholder and 1,000 tons went to unrelated parties.


VERACEL CELULOSE S.A. - BALANCE SHEET (in millions of US dollars)        
    Jun.30,   Mar.31,   Jun.30,       Jun.30,   Mar.31,   Jun.30,
ASSETS               LIABILITIES            
    2008   2008   2007       2008   2008   2007
Current assets   131.5   138.6   132.2   Current liabilities   178.3   163.9   153.7
Cash investments   2.8   0.6   1.0   Short-term debt   137.2   129.4   121.2
Other current                            
assets   128.7   138.0   131.2   Other accruals   41.1   34.5   32.5
Long term assets   167.3   157.0   153.6   Long-term liabilities   530.7   529.5   576.8
Other long term                            
assets   167.3   157.0   153.6   Long-term debt   522.7   516.3   566.6
                Other long-term            
Permanent assets   1,240.9   1,213.2   1,188.4   liabilities   8.0   13.2   10.2
                Stockholders'            
                equity   830.7   815.4   743.7
TOTAL   1,539.7   1,508.8   1,474.2   TOTAL   1,539.7   1,508.8   1,474.2

VERACEL'S TOTAL DEBT MATURITY, AS AT JUNE 30, 2008          
(US$ million)   Local Currency   Foreign Currency   Total Debt   %  
2008   53.1   18.4   71.5   10.8 %
2009   95.9   35.5   131.4   19.9 %
2010   88.7   35.5   124.2   18.8 %
2011   97.6   35.5   133.1   20.2 %
2012   99.7   31.3   131.0   19.9 %
2013   48.8   17.8   66.6   10.1 %
2014   2.1       2.1   0.3 %
Total   485.9   174.0   659.9   100 %

Aracruz is a several guarantor of 50% of the indebtedness incurred by Veracel, and Stora Enso is the several guarantor of the other 50% of such indebtedness.

VERACEL CELULOSE S.A. - STATEMENTS OF OPERATIONS (in millions of US dollars)  
Income statement   2Q 08     1Q 08     2Q 07  
Gross operating income   25.4     40.7     27.5  
   Sales expenses   5.1     5.3     3.5  
   Administrative expenses   5.0     4.8     3.6  
   Other, net   1.8     (2.6 )   18.2  
Operating income   13.5     33.2     2.2  
   Financial income   (2.9 )   (0.3 )   (0.3 )
   Financial expenses   17.2     15.8     16.7  

ARACRUZ RESULTS - SECOND QUARTER 2008 18



   Loss (gain) on currency re-measurement, net   34.8     4.7   19.3  
   Other, net             2.8  
Income before income taxes   (35.6 )   13.0   (36.3 )
Income tax expense (benefit)   0.2     1.8   (4.4 )
Net income   (35.8 )   11.2   (31.9 )

VERACEL CELULOSE S.A. - STATEMENTS OF CASH FLOW (in millions of US dollars)  
Statement of cash flow   2Q 08     1Q 08     2Q 07  
Cash flow from operating activities                  
 Net income (loss)   (35.8 )   11.2     (31.9 )
 Adjustments to reconcile net income to net cash provided by                  
    56.2     28.5     35.3  
 operating activities                  
 (Increase) decrease in assets   12.6     (8.3 )   26.4  
 Increase (decrease) in liabilities   (2.3 )   1.5     7.4  
Net cash provided by operating activities   30.7     32.9     37.2  
Cash flow from investments                  
   Additions to property, plant and equipment   (47.6 )   (26.8 )   (27.5 )
   Other         0.2     0.7  
Net cash (used in) investments   (47.6 )   (26.6 )   (26.8 )
Cash flow from financing                  
   Short-term and long-term debt, net   (31.8 )   (32.2 )   (27.9 )
   Capital increase   51.2     25.3     18.0  
Net cash provided by (used in) financing   19.4     (6.9 )   (9.9 )
Effects of exchange rate changes on cash and cash equivalents   (0.3 )   0.4     0.4  
Increase (decrease) in cash and cash equivalent   2.2     (0.2 )   0.9  
Cash and cash equivalent, beginning of the period   0.6     0.8     0.1  
Cash and cash equivalent, end of the period   2.8     0.6     1.0  

Adjusted EBITDA of VERACEL                  
(US$ million)   2Q 08     1Q 08     2 Q 07  
Net income (loss)   (35.8 )   11.2     (31.9 )
Financial income   (2.9 )   (0.3 )   (0.3 )
Financial expenses   17.2     15.8     16.7  
Income tax   0.2     1.8     (4.4 )
Loss (gain) on currency re-measurement, net   34.8     4.7     19.3  
Other               2.8  
Operating income   13.5     33.2     2.2  
Depreciation and depletion in the results   21.1     19.6     19.0  
EBITDA   34.6     52.8     21.2  
Non-cash charges   2.1     1.2     21.8  
Adjusted total EBITDA   36.7     54.0     43.0  

ARACRUZ RESULTS - SECOND QUARTER 2008 19



Veracel's capital expenditure was as follows:            
(US$ million)   2 Q08     1H08  
       Silviculture   15.3     26.8  
       Land purchases   16.0     22.7  
       Other forestry investments   6.7     11.4  
       On-going industrial investment   7.4     10.4  
       Other   2.2     3.1  
         Total Capital Expenditure   47.6     74.4  

Veracel's capital expenditure forecast:                        
(US$ million)   2H08E     2009E     2010E     2011E  
    New land and forest development to support Veracel expansion   88     82     84     48  
    Ordinary investments   32     62     72     58  
    Other (forest roads & equipment, new nurseries and etc)   42     -     -     -  
 Total   162     144     156     106  

Veracel, located in the state of Bahia (Brazil), is jointly-controlled by Aracruz (50%) and Stora Enso OYJ (50%) and both shareholders must together approve all significant ordinary course of business actions, in accordance with contractual arrangements.

Additional

Information

Fiberline "A" revamp

In order to retain its position in the industry as the company with the lowest production cost, beginning in the 3Q08, the fiberline “A” at the Barra do Riacho unit will be revamped, with investment principally in the area of Bleaching. This technological upgrade will bring about an estimated cost reduction of US$5/t at the Barra do Riacho unit, particularly from reduced consumption of chemicals and electricity. The expected internal rate of return on the project is in excess of the company’s WACC, and the total capex will be US$ 130 million. The project is forecast to be completed in the second half of 2010.


Corporate governance highlight

Aracruz placed second on the Corporate Governance list of the 50 largest non-financial companies in Latin America published by the Latin Finance magazine. The ranking was based on a study of 52 specific areas by the Madrid-based Management & Excellence consulting company, including sustainability, ethics, governability and transparency. The study used analysis models such as the Dow Jones Sustainability Index, the Global Reporting Initiative (GRI) and the Organization for Economic Co-operation and Development (OECD). Comprising 41 indicators, the index evaluated how much the companies' business strategies and practices take into account of their social, economic and environmental impacts.

ARACRUZ RESULTS - SECOND QUARTER 2008 20



Note: In the main body of the text (p.1 - 20), amounts are in US$ unless otherwise specified.

Aracruz Celulose S.A., with operations in the Brazilian states of Espírito Santo, Bahia, Minas Gerais and Rio Grande do Sul, is the world's largest producer of bleached eucalyptus kraft pulp. All of the high-quality hardwood pulp and lumber supplied by the company is produced exclusively from planted eucalyptus forests. The Aracruz pulp is used to manufacture a wide range of consumer and value-added products, including premium tissue and top quality printing and specialty papers. The lumber produced at a high-tech sawmill located in the extreme south of the state of Bahia is sold to the furniture and interior design industries in Brazil and abroad, under the brand name Lyptus. Aracruz is listed at the São Paulo Stock Exchange (BOVESPA), at the Latin America Securities Market (Latibex), in Madrid - Spain, and at the New York Stock Exchange (NYSE) under the ADR level III program (ticker symbol ARA). Each ADR represents 10 underlying "Class B" preferred shares.

ARACRUZ RESULTS - SECOND QUARTER 2008 21



ARACRUZ CELULOSE S.A. – CONSOLIDATED STATEMENTS OF OPERATIONS                    
(in thousands of US dollars, except for per-share   Three-month period ended     Six-month period ended  
amounts)(unaudited)   Jun.30, 2008     Mar.31, 2008     Jun.30, 2007     Jun.30, 2008     Jun.30, 2007  
Operating revenues   605,143     550,124     564,177     1,155,267     1,019,874  
Domestic   42,534     39,853     32,359     82,387     61,435  
Export   562,609     510,271     531,818     1,072,880     958,439  
Sales taxes and other deductions   66,697     65,963     69,973     132,660     130,260  
Net operating revenue   538,446     484,161     494,204     1,022,607     889,614  
Pulp   514,448     463,311     474,808     977,759     853,294  
Paper   18,531     15,416     16,077     33,947     29,788  
Port services   5,467     5,434     3,319     10,901     6,532  
Operating costs and expenses   396,698     362,759     326,027     759,457     601,626  
Cost of sales   348,525     318,511     312,988     667,036     553,362  
     Pulp   334,012     305,900     300,921     639,912     531,069  
       Cost of sales relating to pulp production and purchases   282,804     262,646     258,654     545,450     455,257  
       Inland freight, ocean freight, insurance and other   51,208     43,254     42,267     94,462     75,812  
     Paper   11,230     9,495     10,175     20,725     18,738  
     Port services   3,283     3,116     1,892     6,399     3,555  
Selling   24,628     21,560     21,502     46,188     38,578  
Administrative   18,500     13,490     15,549     31,990     25,963  
Other, net   5,045     9,198     (24,012 )   14,243     (16,277 )
Operating income   141,748     121,402     168,177     263,150     287,988  
Non-operating (income) expenses   (71,024 )   (6,827 )   (43,824 )   (77,851 )   (67,412 )
Financial income   (100,822 )   (28,814 )   (62,898 )   (129,636 )   (112,788 )
Financial expenses   18,695     21,288     19,303     39,983     44,904  
       Interest on financing   21,948     21,932     20,951     43,880     41,124  
       Other   (3,253 )   (644 )   (1,648 )   (3,897 )   3,780  
(Gain) loss on currency re-measurement, net   11,103     699     (226 )   11,802     475  
Other, net               (3 )         (3 )
Income before income taxes, minority interest and equity in                              
the results of affiliated companies   212,772     128,229     212,001     341,001     355,400  
Income taxes   119,842     12,631     66,930     132,473     104,021  
       Current   12,803     11,058     12,840     23,861     33,792  
       Deferred   107,039     1,573     54,090     108,612     70,229  
Minority interest   3,644     4,064     6,434     7,708     6,896  
Equity results of affiliated companies   18,022     (5,358 )   16,096     12,664     22,420  
Net income for the period   71,264     116,892     122,541     188,156     222,063  
Depreciation and depletion in the results:   56,360     55,767     57,651     112,127     106,602  
     Pulp production cost   55,327     58,225     51,857     113,552     104,723  
     Forests and other   (1,132 )   (1,838 )   (981 )   (2,970 )   (2,402 )
     Other operating costs and expenses   1,275     1,335     1,278     2,610     2,547  
   Sub-total   55,470     57,722     52,154     113,192     104,868  
   Inventory movement   890     (1,955 )   5,497     (1,065 )   1,734  
EBITDA(*)   198,108     177,169     225,828     375,277     394,590  
EBITDA (adjusted for other non-cash items) (*)   206,683     189,290     204,353     395,973     381,332  
(*) does not include 50% of Veracel's EBITDA                              

ARACRUZ RESULTS - SECOND QUARTER 2008 22



ARACRUZ CELULOSE S.A. – CONSOLIDATED BALANCE SHEETS            
(in thousands of US dollars)                            
    Jun.30,   Mar.31,   Jun.30,       Jun.30,   Mar.31,   Jun.30,
ASSETS               LIABILITIES            
       2008      2008    2007          2008      2008      2007
Current assets   1,389,275   1,257,410   1,165,636   Current Liabilities   398,395   319,616   286,895
Cash and cash equivalents   33,934   44,572   97,478   Suppliers   159,789   132,608   96,654
Short-term investments   494,128   479,654   399,744   Payroll and related charges   31,208   24,222   23,904
Derivative instruments   31,204           Income and other taxes   38,848   18,765   40,118
Accounts receivable, net   372,716   325,281   309,197   Current portion of long-term debt            
Inventories, net   276,248   247,283   213,965      Related party   83,514   76,715   71,493
Deferred income tax   12,977   15,611   15,070      Other   8,530   5,972   2,711
                Short-term debt - export financing            
Recoverable income and other taxes   144,287   124,057   120,632                
                and other   6,279   5,717    
Prepaid expenses and other                            
                Accrued financial charges   11,387   6,802   9,227
current assets   23,781   20,952   9,550                
                Accrued dividends - Interest payable            
Property, plant and equipment, net   2,672,808   2,557,667   2,294,815                
                on stockholders’ equity   54,749   41,032   41,807
Investment in affiliated company   440,980   433,402   398,316   Other current liabilities   4,091   7,783   981
Goodwill   192,035   192,035   192,035   Long-term liabilities   2,214,740   1,902,712   1,642,245
Other assets   302,629   260,701   155,594   Long-term debt            
Long-term investments   3,856   3,482   3,051      Related party   365,765   341,675   242,695
Derivative instruments   59,031   36,236          Other   1,146,425   962,750   935,520
                Litigations, contingencies and            
Advances to suppliers   111,659   106,811   88,820                
                Commitments   148,376   133,782   116,451
                Liabilities associated with            
Accounts receivable   26,003   24,816                    
                unrecognized tax benefits   90,797   94,184   85,697
                Interest and penalties on liabilities            
Deposits for tax assessments   27,493   25,149   30,143   associated with unrecognized tax            
                    54,683   72,536   58,494
                benefits            
Recoverable taxes   73,422   63,034   32,584   Deferred income tax   358,156   253,779   165,943
Other   1,165   1,173   996   Suppliers           3,260
                Other long-term liabilities   50,538   44,006   34,185
                Minority interest   20,105   15,461   7,771
                Stockholders' equity   2,364,487   2,463,426   2,269,485
TOTAL   4,997,727   4,701,215   4,206,396   TOTAL   4,997,727   4,701,215   4,206,396

ARACRUZ RESULTS - SECOND QUARTER 2008 23



ARACRUZ CELULOSE S.A. – CONSOLIDATED STATEMENTS OF CASH FLOW                    
(in thousands of US dollars)                              
    Three-month period ended     Six-month period ended  
    Jun.30, 2008 Mar.31, 2008 Jun.30, 2007 Jun.30, 2008 Jun.30, 2007  
Cash flows from operating activities                              
Net income for the period   71,264     116,892     122,541     188,156     222,063  
Adjustments to reconcile net income to net cash provided by operating                              
activities:                              
     Depreciation and depletion   55,470     57,722     52,154     113,192     104,868  
     Equity results of affiliated company   18,022     (5,358 )   16,096     12,664     22,420  
     Deferred income tax   107,039     1,573     54,090     108,612     70,229  
     Loss (gain) on currency re-measurement   11,103     699     (226 )   11,802     475  
     Loss (gain) on sale of equipment   (1,550 )   (1,034 )   604     (2,584 )   736  
Decrease (increase) in operating assets                              
     Accounts receivable, net   (45,132 )   32,540     (57,329 )   (12,592 )   (27,608 )
     Inventories, net   (28,966 )   (22,282 )   17,343     (51,248 )   (11,261 )
     Interest receivable on short-term investments   (62,269 )   (22,689 )   4,100     (84,958 )   (13,054 )
     Recoverable taxes   (13,420 )   20,514     (37,714 )   7,094     (18,253 )
     Other   (2,486 )   (4,285 )   (826 )   (6,771 )   (1,265 )
Increase (decrease) in operating liabilities                              
     Suppliers   21,638     11,725     1,120     33,363     (1,712 )
     Payroll and related charges   5,251     (9,505 )   9,204     (4,254 )   (2,421 )
     Litigation, contingencies and liabilities associated with unrecognized tax   (16,624 )   (7,679 )   12,969     (24,303 )   12,953  
benefits                              
     Accrued financial charges   4,321     (2,431 )   (4,989 )   1,890     (8,813 )
     Other   2,458     9,286     2,650     11,744     6,508  
Net cash provided by operating activities   126,119     175,688     191,787     301,807     355,865  
Cash flows from investing activities                              
Short-term investments   39,834     (17,334 )   102,931     22,500     191,749  
Proceeds from sale of equipment   1,741     1,034     1     2,775     201  
Investments in affiliate   (25,600 )   (12,650 )   (9,000 )   (38,250 )   (96,000 )
Additions to property, plant and equipment   (172,140 )   (97,865 )   (150,892 )   (270,005 )   (249,408 )
Net cash provided by (used in) investing activities   (156,165 )   (126,815 )   (56,960 )   (282,980 )   (153,458 )
Cash flows from financing activities                              
Net short-term debt borrowings/(repayments) , net   6,468     1,049     (2,055 )   7,517     340  
Long-term debt                              
     Issuance   193,730     6,158     213,803     199,888     232,110  
     Repayments   (20,065 )   (19,699 )   (219,206 )   (39,764 )   (235,611 )
Dividends and interest on stockholders’ equity paid out   (160,373 )   (44,845 )   (115,678 )   (205,218 )   (150,517 )
Net cash used in financing activities   19,760     (57,337 )   (123,136 )   (37,577 )   (153,678 )
Effect of exchange rate variations on cash and cash equivalents   (352 )   (285 )   161     (637 )   335  
Increase (decrease) in cash and cash equivalents   (10,638 )   (8,749 )   11,852     (19,387 )   49,064  
Cash and cash equivalents, beginning of the period   44,572     53,321     85,626     53,321     48,414  
Cash and cash equivalents, end of the period   33,934     44,572     97,478     33,934     97,478  

ARACRUZ RESULTS - SECOND QUARTER 2008 24



Reconciliation of Operating Results            
Brazilian GAAP v US GAAP (US$ million)   2Q2008     2H08  
Net Income - Parent Company (Brazilian GAAP)   157.5     268.9  
Realized (Unrealized) profits from subsidiaries   7.2     1.2  
Net Income - Consolidated (Brazilian GAAP)   164.7     270.1  
Depreciation, depletion and asset write-offs   30.2     43.3  
Income tax provision - Fas 109   (5.8 )   (11.3 )
Equity results of affiliated company   (17.5 )   (14.5 )
Reversal of goodwill amortization   19.3     35.4  
Foreign-exchange variation   (123.1 )   (141.9 )
Portocel project capitalized financial income   3.5     7.1  
Net Income - Consolidated (US GAAP)   71.3     188.2  
Exchange rate at the end of June/2008 (US$1.0000 = R$1.5919)            

NON-GAAP INFORMATION - DISCLOSURE AND RECONCILIATION TO GAAP NUMBERS

The company believes that, in addition to the reported GAAP financial figures, the inclusion and discussion of certain financial statistics, such as Adjusted EBITDA, cash production cost and net debt, will allow the management, investors, and analysts to compare and fully evaluate the unaudited consolidated results of its operations.

"Cash production cost"

Cash production cost expresses the company's production costs adjusted for non-cash items, such as depreciation and amortization. Cash production cost is not a financial measure under U.S. GAAP, does not represent cash flow for the periods indicated and should not be considered as an indicator of operating performance or as a substitute for cash flow as a measure of liquidity. Cash production cost does not have a standardized definition and our cash production cost calculation may not be comparable to the cash production cost of other companies. Even though cash production cost does not provide a measure of operating cash flow in accordance with U.S. GAAP, the company uses cash production cost as an approximation of actual production cost for the period. Moreover, the company understands that certain investors and financial analysts use cash production cost as an indicator of operating performance.

ARACRUZ RESULTS - SECOND QUARTER 2008 25



          2 Q08               1 Q08               2 Q07      
    US$     Volume     US$     US$     Volume     US$     US$     Volume     US$  
    million     '000 tons   per ton     million '000 tons     per ton     million     '000 tons   per ton  
Cost of sales   282.8     772.7           262.6     730.3           258.7     831.4        
Pulp inventories at the beginning of the period   (156.3 )   (414.0 )         (141.0 )   (380.7 )         (158.3 )   (512.5 )      
Pulp purchased   (59.1 )   (139.4 )         (54.4 )   (127.5 )         (43.9 )   (114.2 )      
Pulp for paper production   3.6     10.8           3.9     12.4           3.5     11.9        
Other   0.8     0.1           (3.3 )   -           1.1     -        
Pulp inventories at the end of the period   177.0     438.3           156.4     414.0           139.0     421.1        
Pulp production cost   248.8     668.5     372     224.2     648.5     346     200.1     637.7     314  
Depreciation and depletion in the production                                                      
cost   (55.3 )   -     (83 )   (58.2 )   -     (90 )   (51.8 )   -     (82 )
Cash production cost   193.5     668.5     289     166.0     648.5     256     148.3     637.7     232  
Cash production cost - Veracel   29.1     119.8           27.0     145.5           22.1     125.7        
Combined cash production cost   222.6     788.3     282     193.0     794.0     243     170.4     763.4     223  
"Net debt"                                                      

Net debt reflects the company’s total debt minus cash, cash equivalents and short-term investments. Net debt is not a financial measure under U.S. GAAP, does not represent cash flows for the periods indicated and should not be considered as a substitute for cash flow as a measure of liquidity or as an indicator of ability to fund operations. Net debt does not have a standardized definition and our net debt calculation may not be comparable to the net debt of other companies. Even though net debt does not provide a measure of cash flow in accordance with U.S. GAAP, the company uses net debt as an accurate measure of financial leverage, since the company keeps cash in excess of its working capital requirement. Furthermore, the company understands that certain investors and financial analysts use net debt as an indicator of financial leverage and liquidity.

"Adjusted EBITDA, including 50% of Veracel"

The inclusion of adjusted EBITDA information is to provide a measure for assessing our ability to generate cash from our operations. Adjusted EBITDA is equal to operating income adjusted for depreciation and depletion and non-cash charges. In managing our business, we rely on adjusted EBITDA as a means of assessing our operating performance. Because adjusted EBITDA excludes interest, income taxes, depreciation, currency re-measurement, equity accounting for associates, depletion and amortization, it provides an indicator of general economic performance that is not affected by debt restructuring, fluctuations in interest rates or effective tax rates, or levels of depreciation and amortization. We also adjust for non-cash items, to emphasize our current ability to generate cash from our operations. Accordingly, we believe that this type of measurement is useful for comparing general operating performance from period to period and making certain related management decisions. We also calculate adjusted EBITDA in connection with our credit ratios. We believe that adjusted EBITDA enhances the understanding of our financial performance and our ability to meet principal and interest obligations with respect to our indebtedness, as well as to fund capital expenditure and working capital requirements. Adjusted EBITDA is not a measure of financial performance under U.S. GAAP. Adjusted EBITDA should not be considered in isolation, or as a substitute for net income, as a measure of operating performance, as a substitute for cash flows from operations or as a measure of liquidity. Adjusted EBITDA has material limitations that impair its value as a measure of a company's overall profitability, since it does not address certain ongoing costs of our business that could significantly affect profitability, such as financial expenses and income taxes, depreciation or capital expenditure and related charges. An adjusted EBITDA calculation is tolerated by the Brazilian regulators with respect to disclosures published in Brazil.

ARACRUZ RESULTS - SECOND QUARTER 2008 26



(US$ million)   2Q2008     1Q2008     2Q2007     1st Half 2008     1st Half 2007  
Net income   71.3     116.9     122.5     188.2     222.1  
Financial income   (100.8 )   (28.8 )   (62.9 )   (129.6 )   (112.8 )
Financial expenses   18.7     21.3     19.3     40.0     44.9  
Income tax   119.8     12.6     66.9     132.4     104.0  
Equity in results of affiliated companies   18.0     (5.4 )   16.1     12.7     22.4  
Loss (gain) on currency re-measurement, net   11.1     0.7     (0.2 )   11.8     0.5  
Other   3.6     4.1     6.5     7.7     6.9  
Operating income   141.7     121.4     168.2     263.2     288.0  
Depreciation and depletion in the results:   56.4     55.8     57.6     112.1     106.6  
Depreciation and depletion   55.5     57.7     52.1     113.2     104.9  
Depreciation and depletion - inventory movement   0.9     (1.9 )   5.5     (1.1 )   1.7  
EBITDA   198.1     177.2     225.8     375.3     394.6  
Non-cash charges   8.6     12.1     (21.5 )   20.7     (13.3 )
 Provision for labor indemnity   0.8     0.7     1.3     1.5     2.4  
 Provision (reversal) for loss on ICMS credits   14.0     10.3     (25.4 )   24.3     (18.7 )
 Provision (reversal) for a tax contingency   (8,9 )   -     -     (8,9 )   0.3  
 Fixed asset write-offs   -     -     0.6     -     0.7  
 Allowance for doubtful accounts receivable   2,7     -     -     2,7     -  
 Discount on tax credit sales   -     1.1     2.0     1.1     2.0  
Adjusted Aracruz EBITDA   206.7     189.3     204.3     396.0     381.3  
50% of Veracel Adjusted EBITDA   18.3     27.0     21.5     45.3     44.9  
Adjusted total EBITDA   225.0     216.3     225.8     441.3     426.2  
Adjusted EBITDA margin - %   42 %   45 %   46 %   43 %   48 %

New accounting pronouncements applicable to our statutory financial statements:

On December 28, 2007, Law 11,638 was enacted. Such Law introduced changes in the Brazilian Corporate Law, mainly related to accounting matters (Chapter XV). On January 29, 2008, CVM (Brazilian Stock and Exchange Commission) issued Deliberation 534, which approved CPC 02 (Accounting Pronouncement # 02) that, among other issues, introduced the concept of functional currency into Brazilian accounting. For U.S. GAAP purposes, the Company has already defined the U.S. dollar as its functional currency. Both the new law and the CPC 02 are applicable for the fiscal year ending December 31, 2008, but application for financial reporting of interim periods during the year is not required.

Those pronouncements are part of a “package” of new rules to be issued, the objective of which is to implement a migration from accounting practices adopted in Brazil to the International Financial Reporting Standards (IFRS). Such migration is expected to be complete by the year ended 31 December 2010, although earlier application is allowed. The Company is in process of evaluating the impact of such new rules, including the full implementation of IFRS, on its statutory financial position. Preliminary analyses indicate that non-monetary assets and the related depreciation, amortization and depletion will be recognized based on their historical cost, determined in U.S. dollars, as well as the net income and shareholders’ equity. However, full implementation of IFRS would require the Company, among other measures, (i) to report its biological assets, consisting of forests, at their fair value, (ii) to proportionally consolidate Veracel and (iii) to recognize the deferred income tax effect on the translation into U.S. dollar functional currency.

ARACRUZ RESULTS - SECOND QUARTER 2008 27



Economic and   Eucalyptus pulp international list prices, by region (US$/t)                    
operational       Oct.07   Nov.07   Dec.07   Jan.08   Feb.08   Mar.08   Apr.08   May.08   Jun.08
data   North America   775   775   805   805   825   825   865   865   865
    Europe   750   750   780   780   800   800   840   840   840
    Asia   690   690   720   720   750   750   780   780   810

Pulp sales distribution, by region   2 Q08   1 Q08   2 Q07   2Q08 vs. 1Q08   2Q08 vs. 2Q07   LTM  
Europe   39 %   41 %   40 %   (2 p.p.)   (1 p.p.)   41 %
North America   36 %   38 %   34 %   (2 p.p.)   2 p.p.   35 %
Asia   23 %   18 %   24 %   5 p.p.   (1 p.p.)   22 %
Brazil   2 %   3 %   2 %   (1 p.p.)   -   2 %

                                  2 Q08   2 Q08   1 Q08   2 Q07
Exchange Rate                                                      
    2 Q08   1 Q08   4 Q07   2 Q07   1 Q07   vs.     vs.     vs.     vs.  
(R$ / US$)                                                      
                                  1 Q08   2 Q07   4 Q07   1 Q07
Closing   1.5919     1.7491     1.7713     1.262     2.504     (9.0 %)   (17.4 %)   (1.3 %)   (6.1 %)
Average   1.6560     1.7379     1.7861     1.818     2.887     (4.7 %)   (16.4 %)   (2.7 %)   (5.1 %)
Source: - Brazilian Central Bank (PTAX800).                                            

Cash flow currency protection results                
    2Q08 YTD   1Q08 YTD   4Q07 YTD   3Q07 YTD   2Q07 YTD
Nominal (US$ million)   50   4   94   79   55
US$ / t (*)   15   1   30   25   17
(*) based on annual production volume                

Credit ratios,   2 Q08   1 Q08   4 Q07   3 Q07   2 Q07   1 Q07   4 Q06   3 Q06   2 Q06
including 50% of Veracel's figures                                                      
Net Debt / Adjusted EBITDA (LTM)   1.47 x   1.28 x   1.37 x   1.29 x   1.29 x   1.25 x   1.33 x   1.42 x   1.52 x
Total Debt / Adjusted EBITDA (LTM)   2.16 x   1.91 x   1.97 x   1.99 x   1.87 x   1.93 x   2.05 x   2.21 x   2.35 x
Total Debt / Total Capital (gross debt plus equity)   45 %   41 %   42 %   42 %   41 %   41 %   43 %   45 %   46 %
Net debt / Total Capital (net debt plus equity)   36 %   32 %   34 %   32 %   33 %   31 %   33 %   34 %   36 %
Cash / Short Term Debt   3.8 x   3.7 x   3.5 x   4.18 x   3.76 x   4.28 x   4.37 x   4.30 x   3.71 x
Total debt average maturity – (months)   59     61     63     63     65     59     60     58     48  
LTM = last twelve months                                                      

ARACRUZ RESULTS - SECOND QUARTER 2008 28



This press release contains statements which constitute forward-looking statements, within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are necessarily dependent on assumptions, data or methods that may be incorrect or imprecise and that may not be possible to realize. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those in the forward-looking statements, due to a variety of factors. The company does not undertake, and specifically disclaims any obligation to update any forward-looking statements, which speak only for the date they are made.

ARACRUZ RESULTS - SECOND QUARTER 2008 29


SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: July 07, 2008

ARACRUZ CELULOSE S.A.
By: /s/ Carlos Augusto Lira Aguiar
Name: Carlos Augusto Lira Aguiar
Title: Chief Executive Officer


Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki