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FORM 6-K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 or 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For November 14, 2001
Companhia Vale do Rio Doce
(Exact name of Registrant as specified in its charter)
Valley of the Doce River Company
(Translation of Registrant's name into English)
Federative Republic of Brazil
(Jurisdiction of incorporation or organization)
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Avenida Graca Aranha, No. 26
20005-900 Rio de Janeiro, RJ, Brazil
(Address of principal executive offices)
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[Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F:]
FORM 20-F X FORM 40-F
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[Indicate by check mark whether the registrant by furnishing the information
contained in this form is also thereby furnishing the information to the
Commission pursuant to rule 12g3-2(b) under the Securities Exchange Act of
1934.]
YES NO X
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[If "Yes " is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b):] Not applicable
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Companhia Vale do Rio Doce
TABLE OF CONTENTS
This Form 6-K contains the following:
Sequential
Page
Item Number
---- ----------
1. Press Release "CVRD: Financial Flows, Debt and Growth", dated
November 13, 2001.............................................. 3
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
COMPANHIA VALE DO RIO DOCE
By: /s/ Eduardo de Carvalho Duarte
---------------------------------
Name: Eduardo de Carvalho Duarte
Title: Chief Accountant
Dated: November 14, 2001
Item 1
[GRAPHIC OMITTED] Companhia
Vale do Rio Doce Press Release
CVRD: Financial Flows, Debt and Growth
Rio de Janeiro, November 13, 2001 - From January 1997 to September 2001, CVRD's
cash generation has been sufficient to allow it to distribute dividends - in
the form of interest on capital -, provide finance for investments, and at the
same time permit a reduction in net debt.
Interest on capital of US$ 2.309 billion has been paid to shareholders and
capital expenditure in the period amounted to US$ 3.868 billion, including
acquisitions of PPSA, FCA, CPFL, SIBRA, Socoimex, Samitri, Samarco, GIIC and
Ferteco. At the same time, net debt, as measured by the difference between
total debt and cash and marketable securities owned by CVRD and its
wholly-owned overseas subsidiaries, fell from US$ 513 million, as of December
31, 1997, to US$ 236 million, as of September 30, 2001, a reduction of US$ 277
million.
Therefore, an amount of US$ 6.454 billion was spent on dividend distribution,
investments and debt amortization. This was financed by a cash flow generation
of US$ 5.233 billion and funds originated from divestitures.
The EBITDA/ interest expenses rose from 4.8x in 1997 to 6.1x in 2001, while at
the same time the ratio of net debt /EBITDA dropped from 0.57x to 0.21x.
Leverage, as measured by the net debt/net debt plus equity ratio, remained at
6%, an extremely low level.
These data reflect CVRD's capacity to finance future growth through cash
generation and/or increased leverage, while at the same time distributing
significant dividends to shareholders.
Operational Cash Flow - in US$ million
1997 1998 1999 2000 9M 01
---- ------ ------ ------ ------
781 1,054 1,147 1,010 1,241
[GRAPHIC OMITTED] Companhia
Vale do Rio Doce Press Release
Dividends Distribution* - in US$ million
1997 1998 1999 2000 9M 01
---- ----- ----- ----- ------
300 590 517 258 644
* Effective payment of interest on shareholders equity.
CAPEX* - in US$ million
1997 1998 1999 2000 9M 01
---- ------ ------ ----- ------
469 466 343 1,602 989
* Includes acquisition.
Debt Evolution - in US$ million
Gross Debt CVRD Cash*
Dec 97 Dec 98 Dec 99 Dec 00 Sept 01
----------- ----------- ----------- ----------- -----------
1,601 1,880 1,655 1,160 1,649 1,438 2,417 1,187 1,088 1.644
* Includes cash of CVRD's wholly owned subsidiaries abroad.
[GRAPHIC OMITTED] Companhia
Vale do Rio Doce Press Release
Debt Coverage Indicators
1997 1998 1999 2000 9M 01
------- ------- ------- ------- -------
Net Debt/LTM EBITDA 0.57 0.42 0.17 1.00 0.21
EBITDA/Gross
Interest Expenses 4.78 5.53 6.11 5.18 6.06
Debt Leverage
Net Det/(Net Debt + Equity) (x)
1997 1998 1999 2000 9M 01
------- ------- ------- ------- -------
0.06 0.06 0.03 0.19 0.05
For further information, please contact:
Roberto Castello Branco: castello@cvrd.com.br +55-21-3814-4540
Andreia Reis: andreis@cvrd.com.br +55-21-3814-4643
Barbara Geluda: geluda@cvrd.com.br +55-21-3814-4557
Daniela Tinoco: daniela@cvrd.com.br +55-21-3814-4946
This release includes "forward-looking statements" that express expectations of
future events or results. All statements based on future expectations rather
than on historical facts are forward-looking statements that involve a number
of risks and uncertainties, and the company cannot give assurance that such
statements will prove to be correct.