UPDATE 1-Brazil's BRF expects stable investments in 2014
SAO PAULO Feb 28 (Reuters) - Brazil's BRF SA, the world's largest poultry exporter and a processed-food maker, expects to invest 1.5 billion reais ($646 million) in 2014, in line with the previous year, executives said on Friday.
They told analysts on a conference call that future investments would be geared towards improving the company's logistics rather than ramping up output.
"Capex will no longer be directed towards an increase in production, but rather towards an increase in productivity, with investments in information technology and logistics," BRF's CEO Claudio Galeazzi said.
He said "fragile points" in logistics had caused BRF to miss some deliveries last quarter.
BRF on Thursday posted fourth-quarter profit of 208 million reais, 60 percent below the year earlier period and missing expectations for the second quarter in a row.
Analysts expect BRF's results to be volatile this year as it shifts focus and implements changes under Galeazzi and Chairman Abilio Diniz, who are committed to reorganizing to cut costs and to making the company an international brand.
Galeazzi said the changes would be reflected in profits starting in the second quarter of this year.
BRF shares rose 41 percent between January and September of last year, but lost those gains in the fourth quarter, after investors were spooked by the weak third-quarter sales. On Friday BRF shares rose 4.5 percent to 42.75 reais.
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