Curitiba, Brazil, March 11, 2009 – América Latina Logística S.A. – ALL (Bovespa: ALLL11)1, Latin America’s largest independent logistics company, announces its results for the fourth quarter and full year 2008 (4Q08 and 2008). ALL operates 21,300 km of rail tracks, 1,060 locomotives, 31,000 rail cars, 1,000 highway vehicles, distribution centers and warehousing installations. ALL’s rail network serves an area that accounts for approximately 75% of Mercosur’s GDP. The Company serves seven of the most active ports in Brazil and Argentina through which approximately 78% of all South America’s grain exports are shipped annually. We offer a full range of logistics services, including domestic and international rail transportation, intermodal door-to-door transportation, distribution and warehousing. The services are provided in Brazil and Argentina by three business units: agricultural commodities, industrial products and highway services. Comparisons included in this report, unless otherwise stated, refer to the same period of 2007. Financial and operational information, unless otherwise stated, are presented in nominal Reais pursuant to Brazilian Corporate Law. Results for 2007 and 2008, unless otherwise stated, contemplate the changes in Brazilian Accounting Standards occurred in 2008 (Law 11,638) and may differ from numbers previously released. Consolidated results, unless otherwise stated, excludes the results of Santa Fé Vagões (40% owned by ALL).

Conference Calls:

March 12, 2009

10:30 a.m. US EDT


March 12, 2009
9:00 a.m. US EDT

Meeting with
Analysts and

March 17, 2009

11:00 a.m. (Brasília)

Intercontinental São Paulo
Alameda Santos, 1.123
São Paulo – SP
Consolidated EBITDA2 increased 23.9% in 2008 to R$1,080.7 million and EBITDAR increased 17.6% in the period, to R$1,248.8 million. EBITDA grew 25.5% in agricultural commodities, 19.0% in industrial products, 34.6% in highway services and 29.4% in Argentina. EBITDA margin increased from 40.7% to 43.2% in 2008. In 4Q08, consolidated EBITDA increased 17.8%, from R$188.8 million in 4Q07 to R$222.4 million and EBITDAR increased 14.1%, from R$232.7 million in 4Q07 to R$265.6 million.
Strong 4Q08 pushes consolidated volumes to a 10.8% growth in 2008, reaching 38,204 million RTK. In Brazil, full-year volumes increased 11.7%, with an increase of 11.2% in agricultural commodities and 12.7% in industrial products. In 4Q08, volumes increased 16.2%, from 8,688 million RTK in 4Q07 to 10,100 million RTK, mainly driven by favorable grain market, industrial market share gain and another strong performance in Argentina.
Average yield increased 6.0% and consolidated revenues increased 17.0% in 2008, reaching R$2,822.4 million. The yield increase mainly reflects: (i) higher tariffs on negotiated agreements, (ii) pass-through of diesel price increase and (iii) lower fertilizer volumes. In 4Q08, revenues increased 22.7%, and average yield rose 7.8% due to take-or-pay revenues related to underperformed volumes, a strong increase in yield in ALL Argentina and a change in transported freight mix. These effects more than offset the weaker freight price in spot market.
  For 2009, we reiterate volume guidance with expected growth between 10% and 12%, pushed mainly by productivity gains and market share increase. We have negotiated with clients 72% of all expected volumes on take-or-pay agreements and expect a marginal increase in yield, assuming no changes in diesel price in the local market.
We have signed a long-term contract with Rumo, an indirectly controlled company of Cosan, for the transportation of 9 million tons of sugar per year, from Itirapina, in the interior of São Paulo State to the Port of Santos. Currently, we only haul 2 million tons of sugar in that same corridor. This contract also contemplates R$1.2 billion of infrastructural investments made by Rumo. The start-up of this operation is subject to the full compliance of pending conditions provided in the agreement.

1 Preferred shares (ALLL4) and common shares (ALLL3) are also listed at BOVESPA but with no significant liquidity
2 For better comparison purposes, EBITDA calculation does not consider the changes in Brazilian Accounting Standards (Law 11,638). Law 11,638 treats a significant portion of our railcar rental contracts as owned assets. Therefore railcar rental costs vanish, being treated as depreciation and financial expenses. These changes have a favorable impact in EBITDA. Under the new Brazilian Accounting Standards, differentiation between EBITDAR (EBITDA prior to rental costs) and EBITDA no longer apply. As of 2009, we will consolidate both concepts and will release only EBITDA.

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