The Brazilian market has shown a positive performance this quarter in all main business segments, despite the continued impact on revenue by the lower participation in wind generation projects. Demand for short cycle goods remains positive, mainly with industrial electro-electronic equipment, motors for domestic use and paints, reflecting the gradual improvement in the economic scenario. In long cycle goods, the T&D (transformers and substations) and solar generation businesses continue to perform well, with consistent growth since last year.

In external markets, we continued to observe a good revenue performance and consistent sales for long cycle goods, such as generators, transformers and high voltage motors, used in brownfield or greenfield projects in important market segments, like oil & gas, mining and water & waste water. For short cycle goods, we are beginning to experience a slowdown in business, with orders coming in at a slower pace than in recent months, reflecting changes in the macroeconomic scenario that signals lower prospects for global growth.

The highlight for this quarter was our EBITDA margin, which increased 2.2 p.p. when compared to 3Q18, a reflection of costs rationalization, lower expenses, gains in scale, in addition to the favorable product mix revenues in the period.

ROIC presented another expansion quarter. Factors such as growing revenues, improvement in operating margins coupled with gains in scale and efficiency in capital allocation have supported the growth seen in recent quarters.

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