Dear Shareholders:
In compliance with legal and statutory provisions, this Board of Directors hereby presents for your appreciation the financial statements for the year ended on December 31, 2010.
Market
The steel container market for paints and chemical products, the industry segment in which the company is largely engaged, has overcome losses sustained in 2009 and achieved strong growth in 2010. Nevertheless, we were unable to recover sales margins owed to fierce competition in the market including that posed by alternative packagings.
Results
Owed to heightened competition, margins remained depressed and the yearend results can be attributed to increased sales.
Management
Sales growth was due to the remarkable capacity and flexibility to meet market demands, thanks to the fact that Brasilata was able to maintain our employee roster, (all hired as inventors) intact during the crisis we had undergone the prior year.
The company in 2010 decided to install its fourth manufacturing unit in the city of Recife, Pernambuco State. In February 2011, the plant was ready and the personnel hired were ready to start up production as early as the first quarter of this year.
Recognition
Brasilata on September 10, 2010, in São Paulo, received an award from the business magazine Época Negócios chosen as one of the most innovative companies in Brazil, achieving 10th place in the ranking. The company believes that this classification was earned mainly due to its internal suggestion program, the Simplification Project. In 2010 alone, the program recorded 205,536 suggestions received. These ideas reflected 212 ideas on the average per employee, a lofty figure even compared to Japanese companies that have similar programs in place.
At another event ceremony held on October 15, 2010 at the governor’s mansion, the Palácio dos Bandeirantes, Brasilata received the State Governor’s Trophy, the top award extended by the São Paulo State Management Quality (PPQG) entity.
The company also received two international accolades at the event, Cans of the Year held in São Paulo one for the Plastplus pail and the second for the expanded TOp can. On the domestic market the Plastplus pail and the Ploc Off can designed to contain foodstuffs also received awards from Embanews.
Brasilata for the 21st time out of 22 years won the Supplier of the Year Award from the São Paulo State Paint and Varnish Syndicate. It also took for the 10th year running out of 10 years, the Supplier of the Year Award from the São Paulo State Paint Resellers Association in the Packaging Category, also for the 12th time out of 13 years, it won the Paint and Painting Award and for the 10th time out of 13 years it earned the Sherwin Williams award.
At the awards ceremony sponsored by ABEAÇO – the Brazilian Steel Container Association on October 20, 2010, Brasilata based on nominations from clients won honors in four categories: cans, aerosol cans and chemical product cans.
Finally the most important award was the inclusion once again as one of the best companies to work for in Brazil based n a survey conducted by the business publications, Exame and Você S.A.
These awards and recognition serve to substantiate the most significant difference of the company, i.e., the participative management style which appreciates and encourages dedication on the part of the Brasilata Man and Woman who are, without a doubt our most precious resource.
Acknowledgements
This Board of Directors would like to thank our partners in operations in 2010 – employees, clients and suppliers.
São Paulo February 28, 2010
The Board of Directors |
