São Paulo, November 14, 2008: LAEP Investments Ltd (BOVESPA: MILK11, Bloomberg: MILK11 BZ and Reuters: MILK11.SA) produces, processes, sells and distributes milk and dairy products, and to capitalize on its structure also produces and distributes cookies, cakes, juices and teas. LAEP (“Company”) has a nationwide presence and sells under well-known brands in Brazil's milk industry, such as “Parmalat”, “Glória”, “Alimba”, “Lacesa”, ”Kidlat”, “Lady” and “Ibituruna”.
1. Q3’08 HIGHLIGHTS AND SUBSEQUENT EVENTS
1.1. Market
The Q3‟08 the dairy industry was characterized by the same tight margins, and even negative ones for certain products, that marked the two previous quarters. In the UHT segment in particular, the same predatory environment was present as in the previous periods, with retail prices lagging production costs.
Despite the unfavorable environment, the Company obtained substantial results from the restructuring started in July/08.
At the time, the Company announced its intention of generating cost cutting and expense savings of R$3.16 million per month; in fact it generated savings of R$4.82 million per month.