Brazil Engine Maker Says Tariffs Are Hitting Long-Term Projects

(Bloomberg)-Industrial Machine provider for global oil and energy companies, Brazil’s Weg Sa said that its customers delayed long-term investments due to increasing geopolitical tensions and new tariffs.

Chief Chief Finance Director Andre Luis Rodrigues said that the company has prepared actions to reduce the potential 50% potential tariffs planned to enter into force in Brazil on August 1st.

In the company’s call for earnings, Rodrigues said, “Weg has a strong global footprint and can re -allocate export ways,” Rodrigues said. For example, while it can be used to serve India’s US market, while Brazil supplies to other countries. Authorized, the adjustments made to production can take months, he added.

Weg does not expect to increase prices because it can create openings for competitors, and the company is currently having good margins, he added.

Brazil, Jaragua Do Sul -based company partially conveyed the first 10% tariffs of the US to customers and had no significant impact on financial consequences.

FAVÖK, a measure of profitability, which excludes the second quarter net income and taxes and depreciation items and missed the estimates of analysts, reportedly.

On Thursday, the stocks in Sao Paulo fell to 3.2% in the transaction and increased the decline of the stock after a 8% decrease of less than expected results on Wednesday. Stocks decreased by approximately 30% this year and a comparison of 11% for the Brazilian stock index.

Related: Billionaire Located Motor Maker is wandering to combat Trump tariffs

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