Edgar Filing: VALLEY OF THE RIO DOCE CO

VALLEY OF THE RIO DOCE COMPANY

United States
Securities and Exchange Commission

Washington, D.C. 20549

FORM 6-K

Report of Foreign Private Issuer
Pursuant To Rule 13a-16 or 15d-16
of the
Securities Exchange Act of 1934

For the month of

November 2003

Valley of the Rio Doce Company

(Translation of Registrant’s name into English)

Avenida Graca Aranha, No. 26
20030-900 Rio de Janeiro, RJ, Brazil
(Address of principal executive office)

(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)

(Check One) Form 20-F [X] Form 40-F [ ]

(Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.)

(Check One) Yes [ ] No [X]

(If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b). 82- .)

Companhia Vale of the Rio Doce

TABLE OF CONTENTS:

This form 6-K contains the following:


Item
Press Release titled “Performance of Companhia Vale do Rio Doce in the Third Quarter of 2003; BR GAAP dated November 13, 2003”			1.

Third Quarterly Financial Statements; BR GAAP			2.

BR GAAP

(COMPANHIA VALE DO RIO DOCE LOGO)

BOVESPA: VALE3, VALE5
NYSE: RIO, RIOPR
LATIBEX: XVALO, XVALP

www.cvrd.com.br
rio@cvrd.com.br

Departamento de Relações
com Investidores

Roberto Castello Branco
Rafael Campos
Barbara Geluda
Daniela Tinoco
Eduardo Mello Franco
Rafael Azevedo
Tel: (5521) 3814-4540

PERFORMANCE OF COMPANHIA VALE DO RIO DOCE IN THE THIRD QUARTER OF 2003

The financial and operational information contained in this press release, except otherwise indicated, refers to the Parent Company and was calculated in accordance with generally accepted Brazilian accounting principles (Brazilian GAAP). This information, with the exception of that referring to investment and market behaviour, is based on the quarterly financial statements, which have been reviewed by independent auditors.

Rio de Janeiro, November 12, 2003 – Companhia Vale do Rio Doce (CVRD) has reported net earnings of R$ 1.279 billion, for the third quarter of 2003 (3Q03), corresponding to R$ 3.33 per share, the second highest quarterly profit in the Company’s history. This result was slightly higher than that for the previous quarter (2Q03) of R$ 1.275 billion, and contrasts with the loss of R$ 216 million in 3Q02, which at that time was caused by the effect of the depreciation of the Real on the Company’s foreign currency-denominated debt.

Return on shareholders’ equity (ROE) annualized in the quarter amounted to 35.2%.

Net earnings for the first nine months of 2003 (9M03) amounted to R$ 3.717 billion, compared to R$ 502 million in the same period a year earlier.

The good results obtained by CVRD were due to the favorable conditions in the markets in which it operates, and particularly the quality of business strategy execution, consistent with the aim of maximizing value over the long term.

Revenues

The gross operating revenue, of R$ 2.767 billion reported in 3Q03, was 25.4% higher than the figure reported in 2Q03 and 18.2% higher than in 3Q02. In the first nine months of 2003, accumulated revenues amounted to R$ 7.491 billion compared to R$ 5.784 billion in the same period a year earlier, showing an increase of 29.5%.

Exports

CVRD’s consolidated export revenues, in accordance with BR GAAP, amounted to US$ 994 million in 3Q03, an increase of 5.0% on the previous quarter figure (2Q03) of US$ 947 million, and 27.4% higher than that reported in 3Q02, of US$ 780 million. Export revenues accumulated to the end of September 2003 amounted to US$ 2.741 billion, compared with US$ 2.370 billion in the same period a year earlier.

3Q 03

BR GAAP

CVRD’s net consolidated exports (exports minus imports) amounted to US$ 2.373 billion in the period January/September 2003, representing 13.4% of Brazil’s trade surplus of US$ 17.797 billion during the period.

Record cash generation

Cash generation, as measured by EBITDA (earnings before interest, tax, depreciation and amortization) amounted to R$ 1.506 billion, an increase of 53.2% on 2Q03 and 34.0% higher than in 3Q02. The quarterly EBITDA registered in 3Q03 is the highest in the Company’s history. In the first nine months of 2003, accumulated EBITDA amounted to R$ 3.637 billion, compared to R$ 2.615 billion in the same period a year earlier.

EBITDA margin (EBITDA/net revenues) in 3Q03 also set a new record, amounting to 56.2%, compared to 46.4% in 2Q03 and 49.8% in 3Q02, surpassing the previous record of 55.5% achieved in 3Q01.

Sales

Shipments of iron ore and pellets amounted to 40.297 million tons in the quarter, 10.6% higher than the amount shipped in 2Q03 and 9.1% more than in 3Q02. Accumulated sales in the first nine months of 2003 amounted to 113.1 million tons, an increase of 5.8% compared to the same period in 2002.

General cargo transported (cargo other than iron ore and pellets) for customers on the Vitória a Minas (EFVM) and Carajás (EFC) railroads set a new quarterly record, with 4.574 billion net ton kilometres (ntk). The third quarter saw 6.4% more general cargo transported by railroad than in 2Q03, which was also an improvement of 17.6% on 3Q02.

Investments

During 3Q03, CVRD’s capital expenditures amounted to US$ 831 million, of which US$ 426.4 million was spent on the acquisition of Caemi. Up to the end of September, the Company had invested a total of US$ 1.419 billion, of which US$ 502 million was spent on acquisitions.

Dividends

On October 31, the Company distributed two tranches of dividends to its shareholders.

The first tranche, of R$ 1.48 per share, corresponds to the second instalment of the minimum dividend announced on January 30 this year. The second tranche, of R$ 1.94 per share, refers to the additional dividend approved by CVRD’s Board of Directors on August 27.

In 2003, the first year in which the new Dividend Policy, approved on 30 November 2002, was implemented, the Company has paid interest on shareholder’s equity of R$ 5.04 per share, amounting to a total of R$ 1.935 billion.

In the 12 months to the end of October, the dividend yield in US dollars is estimated to be 5.4% for common shareholders and 6.1% for preferred shareholders.

3Q 03

BR GAAP

SELECTED FINANCIAL INDICATORS


	R$ million

	3Q02			2Q03		3Q03

Gross Operating Revenues		2,340			2,206		2,767
Gross Margin (%)		54.5			42.9		49.6
EBITDA		1,124			983		1,506
EBITDA Margin (%)		49.8			46.4		56.2
Net Earnings		(216	)		1,275		1,279
ROE (annualized) (%)		(7.7	)		35.9		35.2
Investments (US$ million) *		155.5			389.7		831.0

*including acquisitions

ROE= return on shareholders’ equity = annualized net earnings in the quarter /shareholders’ equity

(COMPANHIA VALE DO RIO DOCE LOGO) RELEVANT EVENTS

In recent months, a number of initiatives have been concluded whose principal aim is to adhere to the strategic focus of the Company and to help increase transparency.

Acquisitions

On September 2, the Company completed the purchase of 50% of the common shares and 40% of the preferred shares of Caemi Mineração e Metalurgia S.A. (Caemi) for US$ 426.4 million, now having 60.2% of the total capital of this company and all the common shares.

Restructuring of logistics assets

With the authorization granted by the Brazilian Regulatory Agency for the Transportation Sector (ANTT), a capital increase of Ferrovia Centro Atlântica (FCA) was carried out. CVRD fully subscribed for the capital increase, for a total of R$ 1.003 billion, of which R$ 798.3 million corresponded to the conversion of advance payments for future capital increases already made, and the remaining R$ 204.9 million to be paid in 4 cash instalments, of which three have already been made. The last installment, for R$ 61.5 million, will be paid in December 2003. As a consequence, CVRD became the controlling shareholder of this railroad company, with 99.99% of its common shares and 99.99% of its total capital. FCA will now be fully integrated into CVRD’s logistics strategy, thereby making investment in the railroad possible, in order to enlarge and improve its general cargo transportation capacity for the Company’s clients.

On November 7, 2003, authorized by ANTT, CVRD divested its stakes in Companhia Ferroviária do Nordeste (CFN) and Sepetiba Tecon S.A.

Simplification of operational structure

CVRD has consolidated Ferteco Mineração S.A. into the Parent Company, taking over the management of Córrego do Feijão and Fábrica iron ore mines, as well as the Fábrica pelletizing plant, located in the Iron Quadrangle, in the state of Minas Gerais. Therefore, starting in September 2003, the results of CVRD Parent Company will directly include - rather than via the equity income result, as previously done - the operational and financial performance of the assets formerly held by Ferteco.

3Q 03

BR GAAP

CVRD has also consolidated Celmar S.A. which assets were transferred to Ferro Gusa Carajás S.A., a joint venture created with Nucor Corporation for the production of pig iron in the north of Brazil.

Starting in January 2004, CVRD’s manganese and ferro-alloys operations will be conducted through four wholly owned subsidiaries: Rio Doce Manganês (Sibra’s new name starting on October 15, 2003), Urucum Mineração S.A., Rio Doce Manganese Norway (RDMN) and Rio Doce Manganèse Europe (RDME).

Divestitures

On August 15, CVRD finalized the sale of the Fazenda Brasileiro gold mine assets. The accounting gain from this sale, which amounted to R$ 63.0 million, were accounted for in this quarter under the item “other operational revenues/expenses”.

On October 24, the Company sold its 11.1% stake in Fertilizantes Fosfatados S.A. – Fosfértil for R$ 240 million. The accounting gain from this transaction, of R$ 115 million, will be added to the result in 4Q03.

(COMPANHIA VALE DO RIO DOCE LOGO) BUSINESS OUTLOOK

Global production of crude steel, according to the International Iron and Steel Institute (IISI), grew 7.1% in the first nine months of 2003, compared to the same period last year, hence registering a slowdown in relation to the first six months of 2003, when production expanded by 8.2%. This was due to production cutbacks in 3Q03 in the European Union, particularly in Germany, France and Spain, as well as in the US, in reaction to the lacklustre macroeconomic performance in the first half of the year.

The driving force behind the global expansion of crude steel production, which according to our estimates is likely to reach 960 million tons this year, compared to 903 million tons in 2002, is China, whose steel production has increased 21.6% this year to the end of September. In the last 60 months up to the end of September 2003, Chinese production of steel has grown at an average annual rate of 15%, while in the rest of the world steel production has expanded at an annual rate of 2.6%.

Consistent with its current stage of economic development, steel consumption in China is growing even more rapidly and CRU expects China’s imports to exceed 40 million tons in 2003, compared to 29 million last year. The increase in China’s overseas purchases of steel influences rising production in certain Asian countries, Japan in particular, whose steel industry is growing at a 3.5% rate this year.

The IISI’s most conservative scenario for the medium term indicates Chinese steel consumption should reach 330 million tons for 2007, with an annual average growth of 9.3% between 2002 and 2007, compared to 15.3% between 1997 and 2002. According to the same source, global consumption will grow until 2007 at an average annual rate of 3.6%, the same rate as that registered in the period 1997/2002.

The strong Chinese demand is having a positive impact on steel prices, with the CRU Steel Price Index (CRUspi) returning to its upward cycle since June. Between December 2001 and October 2003, CRUspi increased by 45.4%.

Another important implication is the substantial increase in demand for iron ore, with Chinese imports during the period January-September 2003 totaling 110

3Q 03

BR GAAP

million tons, almost the same volume imported during the whole of last year, which amounted to 111.7 million tons. Compared with the same period in 2002, Chinese imports of iron ore were up 33.1%.

It is estimated that Chinese imports of iron ore will increase by approximately 35 million tons in 2003, with total imports into Asia rising by 40 million tons.

Japan imported 98.8 million tons of iron ore in the first nine months of 2003, 3.2% more than in the same period last year.

It is likely that the global economy in 3Q03 registered its highest rate of growth since the stock market bubble burst in the US, in 1Q00. The USA, whose GDP grew by an annualized rate of 7.2% in 3Q03, extraordinarily high for a developed economy, and Asia where China’s GDP grew by an annualized 9.1% in 3Q03, led the acceleration in global growth.

At the same time, leading indicators are signalling the start of a synchronized recovery in the global economy. In fact, the strongest signals for future growth are coming not only from the US, but also Japan, Southeast Asia, Latin America and even the European Union, where GDP growth this year is likely to be very modest, below 1%. After almost three years of below trend growth, the global economy seems likely to resume its normal expansion rate.

The change in the global economic cycle has been adding more consistency to the demand for ores and metals, whose pattern, although favorable, has been relying almost exclusively on the extraordinary expansion in China. Metal prices, already influenced by the weakness in the US dollar, reacted positively to the change in expectations for global GDP growth. The price of copper, for example, is now fluctuating in the range of US$ 0.90c a pound, having reached at the end of October 2003 its highest level since October 1997, while the prices of primary aluminum, of approximately US$ 1,500 per ton, even in the face of relatively high stock levels in the industry, are among its highest since May 2001.

The combination of dramatic growth in Chinese demand, now leveraged by prospect of a synchronized recovery in the global economy, and the restricted growth in the supply of ores and metals in the last few years – the mining and metals industry reacted to the financial crisis in Southeast Asia in 1997 by reducing the level of investment in expansion of production capacity - have created imbalances in the markets of certain products, which, despite the expansion projects currently under development, are likely to persist for at least another two years.

CVRD estimates that seaborne trade of iron ore will amount to 545 million tons in 2004, compared to 515 million tons this year, with more than 80% of this growth due to the increasing amount of Chinese purchases overseas. With the extra capacity at Carajás set to come on stream in 2004, pushing production up to 70 million tons a year, the enlargement of the Maritime Terminal at Ponta da Madeira to a capacity of 74 million tons a year and the small increase in capacity in the Southern System (3 million tons), the Company should benefit to a greater extent from the pick-up in demand.

The dynamics of price elasticity is likely to gradually correct the excessive increase in freight rates, which has been caused by the considerable expansion in seaborne iron ore trade - evaluated at approximately 65 million tons in 2002/2003. China has doubled its average monthly imports from 6 million tons in 2001 to 12 million tons in 2003, while at the same time, investment in the construction of new Capesize vessels has not kept pace with this trade expansion.

3Q 03

BR GAAP

The enlargement of port capacity in Brazil, Australia and China, to reduce ship-waiting time, should in the short-term help to increase the effective supply of maritime transportation. Furthermore, according to Clarkson Research Studies, in 2004 shipyards will place an extra 5.6 million deadweight tons of shipping in the marketplace, the equivalent of 35 Capesize vessels, representing an increase of approximately 6% in the global fleet, which will also help to ease the current imbalance between supply and demand for transoceanic transportation. The reaction to the increased shipping supply will be more significant in 2006 and 2007, bearing in mind the length of time between orders being placed and deliveries being met.

Notwithstanding the sharp rise in freight prices on the spot market, with a widening of the spread between Brasil/Asia–Australia/Asia rates, and the probable slowdown in Chinese GDP growth to around 7% in the next few quarters, demand for CVRD’s iron ore might continue to be very strong. This is because of the expansion plans for the Chinese steel industry – the Chinese Iron and Steel Association recently estimated that Chinese production capacity will expand by 120 million tons between the end of 2003 and 2005 – and also because of the Company’s position as a supplier of high content ore with low levels of impurities, important factors for increasing productivity and improving the quality of steel products. Furthermore, the long-term contracts with its Chinese clients permit CVRD to make an effective contribution in optimizing the value chain for steel production.

In the case of alumina, spot prices have remained at around US$ 300 per ton FOB, approximately 20% of the current primary aluminum price on the LME, reflecting the strong demand pressure from China. In the first nine months of this year, Chinese imports amounted to 4.24 million tons, an increase of 32.3% in relation to the same period in 2002.

We expect that the market shortages will continue during 2004 and 2005, which will mean that prices will remain high for many months, in contrast to what occurred in 1995 and 1999/2000, when the high prices seen in alumina saw a rapid reversal.

Spot market prices are influencing prices in short and long-term contracts. This benefits Alunorte, a subsidiary of CVRD, which is signing contracts to absorb its additional production capacity of 1.8 million tons a year, from the construction of stages 4 and 5, which are due to come into service in 2006.

The recent increase in the price of primary aluminum on the LME has had a positive effect on CVRD’s alumina revenues, whose contracts are indexed to metal prices. This situation benefits the sales of Albras, whose production, due to the debottleneckings, will amount to 430,000 tons in 2003, rising to 450,000 tons in 2004. However, depending on the recovery in the global economy, it is estimated that in 2004 there will be an excess supply situation in the aluminum market, in relation to global consumption, which will tend to limit the trend of recent price increases.

Stocks of copper have been falling, due to the slow expansion in the supply of copper concentrate and the sharp increase in Chinese consumption. Moreover, it has been estimated that this shortage will continue next year as a result of expected growth in demand. Despite the fact that the increase in the metal price tends to stimulate expansion in the supply of copper concentrate, no downward pressure is expected on prices for this product, given the continued level of excess demand. This scenario is therefore positive for the sales outlook of Sossego, which will be running at full production capacity in the middle of 2004, at an annual production rate of 470,000 tons of concentrate.

3Q 03

BR GAAP

(COMPANHIA VALE DO RIO DOCE LOGO) SALES VOLUME AND REVENUES

Iron ore and pellet shipments amounted to 40.297 million tons, up 9.1% in relation to the volume sold in 3Q02, of 36.925 million tons, and an increase of 10.6% on that sold in 2Q03, of 36.428 million. However, it is important to note that from September, with the consolidation of Ferteco into the Parent Company, shipments of iron ore produced by the Córrego do Feijão and Fábrica mines and the Fábrica pelletizing plant were included in the figures for CVRD Parent Company, representing an additional 1.601 million tons. Disregarding this added amount, the volume sold of 38.696 million tons showed an increase of 4.8% in relation to 3Q02 and a rise of 6.2% compared to the previous quarter.

Sales accumulated in the first nine months of the year amounted to 113.116 million tons, compared to 106.918 million tons in the same period in 2002, an increase of 5.8%.

Ore fines accounted for 78.4% of shipments in 3Q03, lumps, 9.5% and pellets 12.1%. Iron ore sales amounted to 35.430 million tons and pellet sales, 4.867 million tons. Since 3Q03, the São Luis pelletizing plant has been operating at full capacity – 6 million tons per year, all of its production being sold to the export market. Therefore, in addition to a higher production capacity, CVRD now has more flexibility in the supply of pellets for its clients, via the Tubarão complex in the Southeast of the country, via São Luís in the state of Maranhão, at Ponta da Madeira, and via the Fábrica plant in the state of Minas Gerais (this last one is more focused to the domestic market).

China continued to be the main source of sales expansion for CVRD’s iron ore and pellets. Shipments to Chinese clients in 3Q03, of 7.1 million tons, rose 69.0% in relation to the same period a year earlier, 4.2 million tons, and were up 47.9% in relation to 2Q03’s figure of 4.8 million tons. In the first nine months of 2003, China purchased 17.3 million tons of iron ore and pellets from CVRD, which in annualized terms represents an increase of 31.8% compared to the volume purchased in 2002, showing that despite current capacity constrains, CVRD is being able to take advantage of the opportunities offered by the most dynamic market in the world. CVRD’s market share of Chinese imports remained close to 16%.

Approximately 74% of iron ore and pellet shipments in 3Q03 were sold to the export market, 12% to the pelletizing joint ventures, and 14% to domestic clients. Approximately 24% of export volume was shipped to China, which continues to be CVRD’s main client. Germany accounted for 14.8% of exports, with 4.4 million tons, and Japan accounted for 13.8%, with 4.1 million tons. Asia accounted for 47.0% of exports, and Europe, 39.9%.

Sales of potash amounted to 198,000 tons, an increase of 32.9% in relation to the previous quarter and a drop of 11.2% compared to 3Q02. The drop in the level of shipments in comparison to the same quarter in 2002 is explained by the drawdown of existing stock at that time, which boosted sales to 731,000 tons in 2002. At the moment, the Taquari-Vassouras mine is operating at production levels of 650,000 tons a year, above its nominal capacity of 600,000 tons, with stock levels being practically non-existent.

3Q 03

BR GAAP

SALES VOLUME


			‘000 tons

			3Q02		2Q03		3Q03

Iron Ore and Pellets				36,925		36,428		40,297
	Iron Ore			32,668		32,102		35,430
		Fines		28,688		29,001		31,597
		Lumps		3,980		3,101		3,833
Pellets				4,257		4,326		4,867
Gold (troy ounce)				63,531		19,773		14,211
Potash				223		149		198
Port Services				7,007		7,411		6,515

SALES OF IRON ORE AND PELLETS


		million tons

DESTINATION		3Q02		2Q03		3Q03

ASIA
	China		4.2		4.8		7.1
	South Korea		2.0		1.7		1.7
	Philippines		0.7		0.6		0.6
	Japan		4.0		4.1		4.1
	Taiwan		0.5		0.5		0.5
	Total		11.4		11.7		14.0
EUROPE
	Germany		3.6		2.8		4.4
	Spain		0.7		0.9		0.4
	France		1.4		2.3		1.7
	Italy		0.8		1.2		1.2
	United Kingdom		0.8		0.6		0.6
	Others		3.6		2.8		3.6
	Total		10.9		10.6		11.9
THE AMERICAS
	Argentina		0.6		0.8		0.7
	United States		1.2		0.8		1.0
	Other		0.7		0.6		0.7
	Total		2.5		2.2		2.4
Others
	Bahrein		0.6		0.4		1.0
	Others		1.2		2.0		0.5
	Total		1.8		2.4		1.5
TOTAL			26.6		26.9		29.8

DOMESTIC MARKET

3Q02

2Q03

3Q03

Steel Mills

5.4

4.6

5.7

Pelletizing Joint Ventures

4.9

4.7

Total

10.3

9.5

10.4

TOTAL

36.9

36.4

40.2

General cargo volume transported by EFVM and EFC also represented a new record – amounting to 4.574 billion ntk, an increase of 17.6% in relation to 3Q02, and up 6.4% compared to 2Q03. In the first nine months of 2003, these railroads transported 12.261 billion ntk of general cargo, compared to 10.946 billion in the same period last year, an increase of 12.0%.

3Q 03

BR GAAP

The improvement in productivity indicators for these railroads has also been extremely satisfactory. Average revenue per wagon, generated by EFVM, increased by 35.4% from 3Q02 to 3Q03. Ntks transported per locomotive in service, per day on EFC increased by 19.2% in the same period.

The integration of CVRD’s assets, the clear definition of a marketing policy, the launching of new services and the carrying out of investment, are all enabling the Company’s logistics services to expand at much faster rates than brazilian GDP growth.

Cargo handling for clients in CVRD’s ports and maritime terminals amounted to 6.515 million tons, down 7.0% in relation to 3Q02 and down 12.1% in relation to 2Q03. The reduction in the volume of cargo handled for clients is basically due to the absorption of Ferteco into the Parent Company.

GENERAL CARGO TRANSPORTED BY RAILROAD

million ntk

3Q02

2Q03

3Q03

Vitória a Minas Railroad

3,049

3,311

3,497

Carajás Railroad

841

987

1,077

Total

3,890

4,298

4,574

The Company’s gross operating revenues amounted to R$ 2.767 billion in 3Q03, 18.2% higher than in 3Q02 and an increase of 25.4% on the previous quarter (2Q03). Comparing the total revenues obtained in 2Q03, of R$ 2.206 billion, with those reported in 3Q03, an increase of R$ 561 million can be seen, of which R$ 367 million can be explained by price increases and R$ 219 million by growth in sales volume. The average depreciation of the Real of 10.4% in 3Q03, in relation to 2Q03, alone contributed to a reduction in revenues of R$ 25 million, given that 83% of quarterly sales were either denominated in, or indexed to, the US dollar.

The revenue obtained from the sales of iron ore amounted to R$ 1.777 billion - 64.2% of the total – constituting another record. Revenue growth amounted to 22.4% in comparison to 3Q02, and 31.1% compared to 2Q03. Pellet sales generated revenues of R$ 488 million in 3Q03 - 17.6% of total revenues - an increase of 24.2% in relation to 3Q02 and up 30.1% on 2Q03. As a result of the price increase negotiated with clients, R$ 170 million correspondent to adjustment of shipments made in 1H03 were booked in 3Q03 revenues, leaving another R$ 6 million to be booked in the fourth quarter of 2003.

Revenue generated from the operation of the five joint ventures pelletizing plants in Tubarão, amounted to R$ 36 million, compared to R$ 29 million in 3Q02 and R$ 32 million in 2Q03.

Logistics services generated gross revenues of R$ 359 million correspondent to 13% of total revenues. Railroad transportation generated R$ 281 million in revenues this quarter, registering an increase of 17.1% in relation to 3Q02, which generated revenue of R$ 240 million, and was up 4.1% compared to 2Q03’s (R$ 270 milion). The main elements behind this increase were services provided to the steel industry, which accounted for 38.0% of the total, services to the agro-industry, which accounted for 31.9% of revenues (with particular emphasis on soy beans, sugar and alcohol), and inter-modal transportation, with 3.1%. Despite the small proportion of logistics revenues represented by inter-modal transport, which basically involves the transport of products from factories to large distribution centres, the growth rate in this segment has been extremely high.

3Q 03

BR GAAP

Due to the closure of the Igarapé Bahia mine and the sale of the Fazenda Brasileiro mine, gold sales have dropped from R$ 63 million in 3Q02 to R$ 20 million in 2Q03 and R$ 16 million in 3Q03. Potash sales have remained stable at R$ 81 million in relation to 3Q02, thanks to higher prices, and were up 28.6% in relation to 2Q03, mainly due to an increase in the volume sold.

REVENUE BREAKDOWN BY PRODUCT


		R$ million

		3Q02		%		2Q03		%		3Q03		%

Iron Ore			1,452		62.1		1,355		61.4		1,777		64.2
	Domestic Market		395		16.9		364		16.5		410		23.1
	Export Market		1,057		45.2		991		44.9		1,367		76.9
Pellets			393		16.8		375		17.0		488		17.6
	Domestic Market		56		2.4		64		2.9		88		18.0
	Export Market		337		14.4		311		14.1		400		82.0
Railroad Transport			240		10.3		270		12.2		281		10.2
Port Services			73		3.1		84		3.8		78		2.8
Potash			81		3.5		63		2.9		81		2.9
Gold			63		2.7		20		0.9		16		0.6
Pelletizing Plants Operation Services			29		1.2		32		1.4		36		1.3
Others			9		0.4		8		0.3		10		0.4
Total			2,340		100.0		2,206		100.0		2,767		100.0

(COMPANHIA VALE DO RIO DOCE LOGO) NET EARNINGS OF R$ 1.279 BILLION

Net earnings in 3Q03 were the second highest in CVRD’s history, of R$ 1.279 billion, higher than the figure reported in 2Q03 of R$ 1.275 billion and the loss of R$ 216 million reported in 3Q02. Earnings accumulated in the first nine months of 2003 amounted to R$ 3.717 billion, 81.9% higher than net earnings for the whole year 2002, which amounted to R$ 2.043 billion.

Annualized ROE for 3Q03 amounted to 35.2%, showing the same level seen in the two previous quarters.

Factors behind the increase in earnings in relation to 3Q02

The net revenue increase of R$ 421 million in the 3Q03 vis-à-vis the 3Q02 had a major influence on the very good performance of the Company.

The negative impact of the monetary variation in the 3Q03 amounted to R$ 188 million, a substantially smaller amount when compared to the R$ 2.103 billion registered in the 3Q02, which was caused by the strong depreciation of the Real in that quarter. In the 3Q02, the net financial result was negative in the amount of R$ 510.1 million, being impacted by a provision of R$ 139 million. In the 3Q03, the negative net financial result was reduced to R$ 85.1 million.

The COGS increase in 3Q03 amounted to R$ 323 million vis-á-vis 3Q02. This change was the result of: an increase of R$ 79 million in cost of materials, principally due to provisions made for renovations, an increase of R$ 51 million in fuel oil and gas purchases, R$ 36 million from the acquisition of iron ore and pellets, R$ 20 million referring to the transport of iron ore and pellets from Ferteco to the Sepetiba port (referring to September, when it was consolidated into the parent company), R$ 14 million in demurrage costs, R$ 11 million with energy due to increase in consumption and prices and R$ 6 million in taxes, as a result of the increase in sales.

3Q 03

BR GAAP

COGS BREAKDOWN


	R$ million

	3Q02		%		2Q03		%		3Q03		%

Personnel		137		13.3		124		10.2		144		10.6
Material		135		13.1		206		17.0		214		15.9
Fuel Oil and Gases		111		10.8		156		12.9		162		12.0
Contracted Services		146		14.2		180		14.9		229		17.0
Energy		32		3.1		33		2.7		43		3.2
Acquisition of Products		258		25.1		263		21.7		294		21.7
Depreciation and Exhaustion		168		16.3		155		12.8		185		13.7
Others		41		4.0		95		7.8		81		6.0
Total		1,028		100.0		1,211		100.0		1,351		100.0

With regard to asset sales, there was a year-on-year negative variation of R$ 48 million, seeing that in 3Q02, R$ 111 million in revenues was recorded from the sale of the assets of Florestas Rio Doce and in 3Q03, there were R$ 63 million in revenues from the sale of the Fazenda Brasileiro mine. This item is accounted for at the “Other Operational Revenues/Expenses” line in 3Q03 .

The result from shareholdings saw little change, increasing from R$ 482 million in 3Q02 to R$ 487 million in 3Q03. The main contribution in this quarter came from iron ore and pellet companies, totalling R$ 159 million, followed by steel companies with R$ 136 million and aluminum with R$ 130 million.

In the iron ore and pellets business area, we can highlight Samarco, which not only paid R$ 44 million in dividends to CVRD, but also generated a quarterly equity income result of R$ 52 million. Samarco sales increased by 14,9% in the first nine months of the year vis-à-vis the same period of 2002, becoming the largest pellet supplier of China. Year September, Samarco net income totaled R$ 386.5 million.

GIIC, a pelletizing plant located in Bahrain, also presented a good performance. Sales in the first nine months of 2003, of 2.850 million tons, increased 33.1% yoy. In the same period, net income amounted to R$ 52.9 million and contributed with R$ 10 million to CVRD net income.

Ferteco generated in July and August (the two months before its consolidation into CVRD) results from shareholdings of R$ 7 million. This includes a goodwill amortization of R$ 26 million.

As a consequence of the growth in demand derived from the world steel production and of the restructuring of the manganese and ferro alloys companies, this business area has shown good performance. Sibra contributed with R$ 10 million for CVRD’s quarterly net income, RDME with R$ 9 million, RDMN with R$ 6 million and Urucum, R$ 5 million.

In logistics, MRS generated a positive result of R$ 23 million due to and increase in volume transported and Docenave, R$ 14 million, partly offset by a loss of R$ 30 million from FCA.

Given the capacity expansions that took place in MRN, Alunorte and Albras, the increase in alumina prices and the recent recovery in aluminum prices, the operational performance of those companies improved substantially in 2003. However, losses realized with aluminum price hedging, through the use of derivatives, caused a drop in the results from shareholdings from R$ 267 million in 2Q03 to R$ 130 in 3Q03. Anyway the aluminum business area contributed with R$ 618 million for the Company net earnings during 2003, 16.6% of the total amount.

3Q 03

BR GAAP

The interest of CVRD in steel companies generated R$ 136 million in 3Q03, due to the good performance of this industry. CST contributed with R$ 83 million, Usiminas with R$ 47 million and CSI with R$ 5 million.

RESULT FROM SHAREHOLDINGS BY BUSINESS AREA


		R$ million

Business Area		3Q02			2Q03			3Q03

Ferrous Minerals			868			7			202
	Iron Ore and Pellets		791			(3	)		159
	Manganese and Ferro Alloys		77			10			43
Non-Ferrous Minerals			(52	)		27			(26	)
Logistics			(153	)		(178	)		8
Steel			133			15			136
Aluminum			(321	)		267			130
Others			7			12			37
Total			482			151			487


	EBITDA BEHAVIOR

In this quarter, the Company generated record EBITDA, of R$ 1,506 million, an increase of 34.0% in relation to 3Q02 (R$ 1,124 million) and 53.2% higher than in 2Q03 (R$ 983 million). EBITDA margin also constituted a record, 56.2%, higher than that in 3Q02 (49.8%) and that in 2Q03 (46.4%).

EBITDA growth in relation to 3Q02

The main factor behind the increase in EBITDA in 3Q03, compared to 3Q02 was the growth in net operating revenue of R$ 421 million.

Furthermore, a number of other factors combined to contribute to this increase: (i) an increase in the amount of dividends received from subsidiaries and affiliates of around R$ 182 million; (ii) gain of R$ 63 million from the sale proceeds of the Fazenda Brasileiro mine, booked at the “other operating expenses/revenues” line; (iii) a reduction of R$ 18 million in depreciation.

In 3Q03, CVRD Parent Company received dividends of R$ 212 million, from which R$ 87.8 million were paid by CST, R$60.6 million by Docenave, R$ 43.7 million by Samarco, R$ 9.6 million by Usiminas, and R$ 6.1 million by Fosfértil, with R$ 4.2 million being received in dividends from other companies.

The increase of R$ 324 million in COGS, of R$ 17 million in Research and Development expenses, and the increase of R$ 18 million in Sales and Administrative expenses, all contributed to limit EBITDA growth. The major item that contributed for the increase in these expenses was sales commissions generated by the increase in revenues.

3Q 03

BR GAAP

EBITDA CALCULATION


	R$ million

	3Q02			2Q03			3Q03

Net Operating Revenues		2,259			2,119			2,680
COGS		(1,027	)		(1,211	)		(1,351	)
Sales Expenses		(44	)		(45	)		(56	)
Administrative Expenses		(91	)		(97	)		(97	)
Research & Development		(47	)		(36	)		(64	)
Other Operational Expenses		(130	)		(131	)		(9	)
EBIT		920			600			1,102
Depreciation and Amortization		174			163			192
Dividends Received		30			185			212
Adjustments for Non-Recurring Items (asset write- off)		—			36			—
EBITDA		1,124			983			1,506

FINANCIAL STATEMENTS


	R$ million

	3Q02			2Q03			3Q03

Gross Operating Revenues		2,340			2,206			2,767
Taxes		(81	)		(87	)		(87	)
Net Operating Revenues		2,259			2,119			2,679
Cost of Goods Sold		(1,028	)		(1,211	)		(1,351	)
Gross Earnings		1,232			908			1,328
Gross Margin (%)		54.5			42.9			49.6
Result from Shareholdings		482			151			487
Equity Income		967			370			246
Goodwill Amortization		(109	)		(185	)		(113	)
Provision for Losses		(377	)		(35	)		354
Others		—			—			—
Operational Expenses		(313	)		(308	)		(226	)
Sales		(44	)		(45	)		(56	)
Administrative		(91	)		(97	)		(97	)
Research and Development		(47	)		(36	)		(64	)
Other Operational Expenses		(130	)		(131	)		(9	)
Financial Result		(2,613	)		783			(273	)
Financial Expenses		(542	)		(164	)		(145	)
Financial Revenues		32			61			60
Monetary Variation		(2,103	)		885			(188	)
Operating Profit		(1,212	)		1,534			1,317
Result from Discontinued Operations		111			—			—
Income Tax and Social Contribution		885			(259	)		(38	)
Net Earnings		(216	)		1,275			1,279
Earnings per share (R$)		(0.56	)		3.32			3.33

3Q 03

BR GAAP

BALANCE SHEET


			R$ million

			09/30/02		06/30/03		09/30/03

Asset
	Current			6,412		4,127		5,617
	Long Term			3,425		2,894		2,646
	Fixed			17,997		20,774		22,177
Total				27,834		27,796		30,440
Liabilities
	Current			5,199		5,297		6,392
	Term			11,396		8,310		9,515
Shareholders’ Equity				11,239		14,188		14,533
		Paid-up Capital		5,000		6,300		6,300
		Reserves		6,240		7,888		8,233
Total				27,834		27,796		30,440

INVESTMENTS

During 3Q03, CVRD’s capital expenditure amounted to US$ 831 million, of which US$ 426.4 million was spent on the purchase of Caemi. In the first nine months of the year, the Company invested a total of US$ 1,418.7 million, US$ 502 million of which referred to acquisitions.

In this quarter, US$ 210.9 million was invested in projects. The largest portion of this being spent on the Sossego project, with an investment of US$ 106.3 million; US$ 8.6 million being spent on the expansion of the Taquari-Vassouras potash mine and US$ 28.6 million being spent on the purchase of locomotives and railcars. In addition to this, US$ 32.8 million was invested in enlarging iron ore production and logistics capacity in the Northern System and US$ 13.6 million in the Southern System.

Expenditure on maintenance and environmental protection in 3Q03 amounted to US$ 107.9 million, representing 13.0% of total capital expenditure.

Capital injections totalling US$ 61 million - 7.3% of total capital expenditure, were distributed between FCA, PPSA and companies dedicated to mineral exploration in Peru and Gabon.

Expenditure on mineral exploration and technological research amounted to US$ 18.9 million. US$ 9.1 million was spent on information technology, US$ 4.8 million of which was spent on the implementation of the ERP system.

Of the total amount invested in 3Q03, the ferrous mineral business accounted for 69.0%, the non-ferrous business, 20.2% and logistics, 7.5%.

3Q 03

BR GAAP

Main projects:


		Investment realized
		US$ million

Area	Project	1Q03		2Q03		3Q03		9M03		Status

	Expansion of iron ore production capacity in the Northern System		6.1		7.7		14.2		28.0	It is expected that the Northern System will be operating at a rate of 70 million tons per year in 1Q04, consequently being some 12 months ahead of schedule.

	Pier III at the Maritime Terminal of Ponta da Madeira		2.1		2.8		4.7		9.6	Completion scheduled for February 2004 . The implementation of this project is proceeding on schedule with capex estimated at US$ 33.3 million. Pier III will have a shipment loading capacity of 18 million tons a year, increasing the capacity of TMPM to 74 million tons a year.

Ferrous	(TMPM) Brucutu iron ore mine – Southern System		0.146		0.296		1.1		1.5	Completion of first phase scheduled for 2006, when the mine will have a production capacity of 12 million tons per year. The work is proceeding according to schedule. Total investment is budgeted at US$ 219.9 million.

	Fábrica Nova iron ore mine –Southern System		0.637		2.5		5.9		9.0	11% of the investment has already been realised and work is proceeding according to schedule. Fábrica Nova should reach nominal production capacity of 10 million tons a year in 2005, reaching 15 million tons in 2009. Total capex is estimated at US$ 84.4 million, with investment in 2003 budgeted at US$ 39.6 million . The project is on schedule and within budget.

	Sossego Copper Mine		40.5		87.5		106.3		234.3	83% of the total investment for the project has already been carried out, which represents completion of around 90% of the work. Commissioning is scheduled for 1Q04, production ramp up for 2Q04 and start up commercial production for July 04.

Non Ferrous	Expansion of the Taquari- Vassouras Potash Mine		4.0		6.9		8.6		19.5	Completion scheduled for 1H05. 38% of the total investment in the project has already been realised. 42% of the work has already been completed. After the expansion, the mine will have a production capacity of 850,000 tons a year.

	Purchase of Locomotives and Railcars		18.9		35.3		28.6		82.8	Of the 2,010 railcars and 77 locomotives, which will be purchased by the end of 2003 , the Company has already received 1,356 railcars and 66 locomotives. Part of this equipment will be allocated to the transport of general cargo and part for the transport of iron ore. 51% of the total investment, estimated at US$ 162.9 million has already been carried out.

Logistics	Praia Mole Maritime Terminal (phases I & II)		0.707		1.5		3.0		5.2	Phase I was concluded in April 2003. After the completion of Phase II, scheduled for 2Q04, the shipment capacity of the Terminal will be 14.5 million tons a year. Total investment is budgeted at US$ 20.9 million.

	Aimorés Hydroelectric Plant		6.4		7.6		2.9		16.9	Full operation has been postponed to October 2004, due to delays in the relocation of a town due to legal issues. The construction of the plant is proceeding according to schedule. The plant will be ready within the initial period envisaged, but will not be able to generate electricity because the water reservoir will not be full.

Power Generation	Candonga Hydroelectric Plant		6.7		5.4		3.6		15.7	Completion scheduled for December 2003. Almost 100% of the total investment in the project, estimated at US$ 40.1 million, has been completed.

3Q 03

BR GAAP

INVESTMENTS - 3Q03


By Business Area	US$ million		%

Ferrous Minerals		573.6		69.0	%
Logistics		62.3		7.5	%
Non-ferrous Minerals		167.8		20.2	%
Power Generation		12.8		1.5	%
Others		14.5		1.7	%
Total		831.0		100.0	%


By Category	US$ million		%

Capital infusions		57.8		7.0	%
Maintenance & Environmental Protection		107.9		13.0	%
Projects		210.9		25.4	%
Mineral Exploration & Technological Research		18.9		2.2	%
Information Technology		9.1		1.1	%
Acquisitions		426.4		51.3	%
Total		831.0		100.0	%

3Q 03

BR GAAP

IRON ORE AND PELLET COMPANIES -FINANCIAL INDICATORS


		R$ million

HISPANOBRAS		3Q02			2Q03			3Q03

Quantity Sold (‘000 tons)			685			890			824
	Export Markets		165			625			94
	Domestic Market		520			265			730
Average Price (US$/ton)			32.07			36.33			32.59

Net Revenues			67			93			79
Cost of Goods Sold			(57	)		(85	)		(64	)
Net Financial Result			8			(7	)		0
Net Earnings			10			8			4
Gross Margin (%)			15.5			8.6			19.5
EBITDA			9			17			7
EBITDA Margin (%)			13.9			18.2			9.2


NIBRASCO		3Q02			2Q03			3Q03

Quantity Sold (‘000 tons)			1,842			1,719			1,626
	Export Markets		290			513			509
	Domestic Market		1,552			1,206			1,117
Average Price (US$/ton)			25.96			27.03			33.79

Net Revenues			162			147			174
Cost of Goods Sold			(148	)		(153	)		(156	)
Net Financial Result			(2	)		2			(5	)
Net Earnings			4			(5	)		17
Gross Margin (%)			8.7			(3.8	)		10.4
EBITDA			14			(3	)		20
EBITDA Margin (%)			8.7			(2.1	)		11.6
Gross Debt (US$ million)			5			2			2
	- Short Term		2			2			2
	- Long Term		2			—			—


ITABRASCO		3Q02			2Q03			3Q03

Quantity Sold (‘000 tons)			815			843			838
	Export Markets		572			778			838
	Domestic Market		243			65			—
Average Price (US$/ton)			30.06			35.25			32.96

Net Revenues			80			91			80
Cost of Goods Sold			(67	)		(76	)		(73	)
Net Financial Result			13			(5	)		2
Net Earnings			13			6			4
Gross Margin (%)			16.7			16.6			8.4
EBITDA			8			14			4
EBITDA Margin (%)			9.6			15.0			5.0
Gross Debt (US$ million)			16			0			0
	- Short Term		16			0			0
	- Long Term		—			—			—

3Q 03

BR GAAP

IRON ORE AND PELLET COMPANIES - FINANCIAL INDICATORS


		R$ million

KOBRASCO		3Q02			2Q03			3Q03

Quantity Sold (‘000 tons)			850			1,128			1,134
	Export Markets		850			667			453
	Domestic Market		—			461			681
Average Price (US$/ton)			29.47			30.35			34.59

Net Revenues			74			102			102
Cost of Goods Sold			(60	)		(89	)		(82	)
Net Financial Result			(147	)		50			(8	)
Net Earnings			(92	)		35			5
Gross Margin (%)			18.9			12.2			19.1
EBITDA			9			9			18
EBITDA Margin (%)			11.9			8.4			18.2
Gross Debt (US$ million)			147			102			102
	- Short Term		—			—			—
	- Long Term		147			102			102


SAMARCO		3Q02			2Q03			3Q03

Quantity Sold - Export Market (‘000 tons)			3.871			4.277			3.928
Pellets			3.275			3.339			3.359
Iron ore			596			938			569

Average Price (US$/ton)
Pellets			30,13			35,03			35,47
Iron ore			15,81			16,57			17,56

Net Revenues			311			371			348
Cost of Goods Sold			(138	)		(166	)		(163	)
Net Financial Result			(163	)		25			(14	)
Net Earnings			(73	)		142			105
Gross Margin (%)			56			55			53
EBITDA			137			168			163
EBITDA Margin (%)			44,1			167,9			162,6
Gross Debt (US$ million)			322			138			136
	- Short Term		76			—			—
	- Long Term		246			138			136


GIIC*		3Q02			2Q03			3Q03

Quantity Sold (‘000 tons)			643			1.178			900
	Export Market		643			1.178			900
Average Price (US$/ton)			41,55			43,30			41,18

Net Revenues			104			140			120
Cost of Goods Sold			(97	)		(106	)		(88	)
Net Financial Result			(1	)		(1	)		(1	)
Net Earnings			8			21			20
Gross Margin (%)			6,7			23,8			26,3
EBITDA			14			24			23
EBITDA Margin (%)			13,0			16,9			18,9
Gross Debt (US$ million)			40			35			30
	- Short Term		—			—			—
	- Long Term		40			35			30

*Financial indicators calculated according to IASC norms (International Accounting Standards Committee)

3Q 03

BR GAAP

MANGANESE AND FERRO-ALLOY COMPANIES -FINANCIAL INDICATORS


		R$ million

SIBRA (Consolidated)		3Q02			2Q03			3Q03

Quantity Sold - Ferro Alloys (‘000 tons)			104			78			90
	Export Market		63			40			47
	Domestic Market		41			38			43
Average Price (US$/ton)			442.63			606.47			569.57
Quantity Sold - Manganese (‘000 tons)			239			382			344
	Export Market		181			306			261
	Domestic Market		58			76			83
Average Price (US$/ton)			46.38			42.93			45.52
Net Revenues			168			171			177
Cost of Goods Sold			(101	)		(93	)		(112	)
Net Financial Result			13			(19	)		(6	)
Net Earnings			46			25			29
Gross Margin (%)			39.7			45.6			36.8
EBITDA			53			57			43
EBITDA Margin (%)			31.7			33.3			24.2
Gross Debt (US$ million)			45			64			58
	- Short Term		25			25			18
	- Long Term		20			39			40


URUCUM		3Q02			2Q03			3Q03

Quantity Sold - Iron ore (‘000 tons)			198			174			217
	Export Market		197			174			214
	Domestic Market		1			—			3
Average Price (US$/ton)			14.31			15.03			15.67
Quantity Sold - Manganese (‘000 tons)			78			109			107
	Export Market		25			43			52
	Domestic Market		53			66			55
Average Price (US$/ton)			40.76			37.18			40.66
Quantity Sold - Ferro Alloys (‘000 tons)			3			3			8
	Export Market		3			3			8
	Domestic Market		—			—			—
Average Price (US$/ton)			452.09			503.55			483.38
Net Revenues			21			23			31
Cost of Goods Sold			(9	)		(10	)		(18	)
Net Financial Result			5			(7	)		0
Net Earnings			5			7			5
Gross Margin (%)			57.8			57.2			43.8
EBITDA			12			15			10
EBITDA Margin (%)			55.7			65.7			31.2
Gross Debt (US$ million)			—			5			5
	- Short Term		—			5			5
	- Long Term		—			—			—

3Q 03

BR GAAP

ALUMINUM COMPANIES – FINANCIAL INDICATORS


		R$million

MRN		3Q02			2Q03			3Q03

Quantity Sold (‘000 tons)			2,554			3,512			4,049
	Export Markets		740			958			1,324
	Domestic Market		1,814			2,554			2,725
Average Price (US$/ton)			18.46			18.98			19.21

Net Revenues			147			184			211
Cost of Goods Sold			(73	)		(89	)		(100	)
Net Financial Result			(74	)		(11	)		(2	)
Net Earnings			(7	)		75			97
Gross Margin (%)			50.5			51.5			52.8
EBITDA			87			110			128
EBITDA Margin (%)			59.3			59.6			60.5
Gross Debt (US$ million)			101			200			203
	- Short Term		23			134			145
	- Long Term		78			65			58


ALUNORTE		3Q02			2Q03			3Q03

Quantity Sold (‘000 tons)			348			537			631
	Export Market		115			303			395
	Domestic Market		233			234			236
Average Price (US$/ton)			170.13			173.68			185.78

Net Revenues			196			273			340
Cost of Goods Sold			(131	)		(218	)		(235	)
Net Financial Result			(374	)		137			(62	)
Net Earnings			(307	)		151			23
Gross Margin (%)			33.1			20.2			30.9
EBITDA			74			68			109
EBITDA Margin (%)			37.5			25.1			32.2
Gross Debt (US$ million)			473			498			487
	- Short Term		—			4			8
	- Long Term		473			494			479


ALBRAS		3Q02			2Q03			3Q03

Quantity Sold (‘000 tons)			104			106			111
	Export Market		101			102			107
	Domestic Market		3			4			4
Average Price (US$/ton)			1,289.68			1,326.07			1,366.25

Net Revenues			414			424			446
Cost of Goods Sold			(249	)		(271	)		(274	)
Net Financial Result			(505	)		176			(76	)
Net Earnings			(322	)		247			71
Gross Margin (%)			39.9			35.9			38.5
EBITDA			161			157			170
EBITDA Margin (%)			38.8			37.1			38.1
Gross Debt (US$ million)			519			400			387
	- Short Term		20			—			—
	- Long Term		499			400			387

3Q 03

BR GAAP

ALUMINUM COMPANIES – FINANCIAL INDICATORS


		R$million

VALESUL		3Q02			2Q03			3Q03

Quantity Sold (‘000 tons)			18			24			26
	Export Market		8			15			17
	Domestic Market		10			9			9
Average Price (US$/ton)			1,654.96			1,685.83			1,668.32

Net Revenues			94			112			121
Cost of Goods Sold			(62	)		(89	)		(99	)
Net Financial Result			(1	)		—			1
Net Earnings			20			3			13
Gross Margin (%)			34.1			21.1			18.3
EBITDA			28			14			22
EBITDA Margin (%)			30.1			12.8			18.0
Gross Debt (US$ million)			1			2			2
	- Short Term		0			1			1
	- Long Term		1			1			1

STEEL COMPANIES – FINANCIAL INDICATORS


		R$ million

CSI		3Q02			2Q03			3Q03

Quantity Sold (‘000 tons)			508			447			507
	Export Markets		508			447			507

Average Price (US$/ton)			382.38			401.96			374.08
Net Revenues			763			521			559
Cost of Goods Sold			(650	)		(515	)		(571	)
Net Financial Result			(36	)		(9	)		(9	)
Net Earnings			60			(3	)		(11	)
Gross Margin (%)			14.8			1.3			(2.2	)
EBITDA			141			30			9
EBITDA Margin (%)			18.5			5.7			1.5

This communication may include declarations which represent the expectations of the Company’s Management about future results or events. All such declarations, when based on future expectations and not on historical facts, involve various risks and uncertainties. The Company cannot guarantee that such declarations turn out to be correct. Such risks and uncertainties include factors relative to the Brazilian economy and capital markets, which are volatile and may be affected by developments in other countries; factors relative to the iron ore business and its dependence on the steel industry, which is cyclical in nature; and factors relative to the high degree of competitiveness in industries in which CVRD operates. To obtain additional information on factors which could cause results to be different from those estimated by the Company, please consult the reports filed with the Comissão de Valores Mobiliários (CVM - Brazilian stock exchange regulatory authority) and the U.S. Securities and Exchange Commission - SEC, including the most recent Annual Report - CVRD Form 20F.

3Q 03

CONTENTS


Part I		3
1- Management’s Discussion and Analysis of the Operating Results for the Nine Months Ended September 30, 2003 Compared with the Nine Months Ended September 30, 2002		3
1.1- General Aspects		3
1.2- Comments on the Company Results		4
	1.2.1- Gross Revenues	4
	1.2.2- Cost of Products and Services	5
	1.2.3- Result of Shareholdings by Business Area	6
	1.2.4- Operating Expenses	8
	1.2.5- Net Financial Result	8
	1.2.6- Cash Flow	8
	1.2.7- Income Tax and Social Contribution	9
	1.2.8- Interest on Stockholders’ Equity	9
Part II		10
Quarterly Information and Notes to the Quarterly Information		10
2- Balance Sheet		10
3- Statement of Income		11
4- Statement of Changes in Stockholders’ Equity		12
5- Statement of Cash Flows (Additional Information)		13
6- Notes to the Quarterly Information at September 30, 2003 and 2002		14
6.1- Operations		14
6.2- Presentation of Quarterly information		14
6.3- Significant Accounting Policies		14
6.4- Cash and Cash Equivalents		14
6.5- Transactions with Related Parties		15
6.6- Inventories		15
6.7- Deferred Income Tax and Social Contribution		16
6.8- Investments		17
6.9- Property, Plant and Equipment		20
6.10- Loans and Financing		21
6.11- Contingent Liabilities		22
6.12- Environmental and Site Reclamation and Restoration Costs		23
6.13- Paid-up Capital		23
6.14- Treasury Stock		24
6.15- Financial Result		24
6.16- Financial Instruments - Derivatives		25
6.17- Exchange Rate Exposure		28
6.18- Administrative and Other Operating Expenses		28
6.19- Subsequent Events		29
Part III		31
7- Other Information the Company Deems Relevant		31
7.1- Iron Ore and Pellet Sales (Main Markets) (Not Reviewed)		31
Part IV		32
8- Attachment I - Equity Investee Information		32
8.1- Aluminum Area - ALBRAS (Adjusted and Not Reviewed)		32
8.2- Aluminum Area - ALUNORTE (Adjusted and Not Reviewed)		33
8.3- Aluminum Area - ALUVALE (Adjusted and Not Reviewed)		34


	CVRD	1


8.4- Aluminum Area - MRN (Adjusted and Not Reviewed)				35
8.5- Aluminum Area - VALESUL (Adjusted and Not Reviewed)				36
8.6- Pelletizing Area - HISPANOBRAS (Adjusted and Not Reviewed)				37
8.7- Pelletizing Area - ITABRASCO (Adjusted and Not Reviewed)				38
8.8- Pelletizing Area - KOBRASCO (Adjusted and Not Reviewed)				39
8.9- Pelletizing Area - NIBRASCO (Adjusted and Not Reviewed)				40
8.10- Pelletizing Area - SAMARCO (Adjusted and Not Reviewed)				41
8.11- Pelletizing Area - GIIC (Adjusted and Not Reviewed)				42
8.12- Iron Ore Area - FERTECO (Adjusted and Not Reviewed)				43
8.13- Manganese and Ferroalloys Area - SIBRA (Adjusted and Not Reviewed)				44
8.14- Manganese and Ferroalloys Area - URUCUM (Adjusted and Not Reviewed)				45
8.15- Steel Area - CST (Adjusted and Not Reviewed)				46
8.16- Steel Area - CSI (Adjusted and Not Reviewed)				47
9- Report of the Independent Accountants				48
10- Board of Directors, Fiscal Council, Advisory Committees and Executive Officers				49


2	CVRD

PART I

Expressed in thousands of reais

1- MANAGEMENT’S DISCUSSION AND ANALYSIS OF THE OPERATING RESULTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2003 COMPARED WITH THE NINE MONTHS ENDED SEPTEMBER 30, 2002

1.1- General Aspects

(a)

The Companhia Vale do Rio Doce’s segments of business are mining, logistics and energy, directly or through its interests, as follows:

	•		ferrous minerals: iron ore and pellets as well as manganese and ferroalloys;

	•		non-ferrous minerals: gold, potash, kaolin and copper;

	•		logistics: railroads, ports and maritime terminals and shipping;

	•		energy: electric power generation; and

	•		shareholdings: equity holdings in producers of aluminum, steel and fertilizers.

(b)

The variations of the main currencies and indices in terms of percentages in relation to the real, which impacted the results of the Company and its subsidiaries, jointly controlled companies and affiliates, were as follows:


	D%													Parity

Currencies / Indice	U.S.
Period	DOLLAR			YEN			GOLD		IGP-M			TJLP		US$ x R$		US$ x Yen

Until 09/30/03		(17.3	)		(11.9	)		11.8		7.1			8.6		2.9234		111.65
3Q/03		2.1			9.4			12.1		1.1			2.9		2.9234		111.65
2Q/03		(14.3	)		(15.6	)		3.3		(0.4	)		2.9		2.8720		119.94
Until 12/31/02		52.3			68.2			25.0		25.3			9.9		3.5333		118.87
Until 09/30/02		67.9			80.8			16.6		10.5			7.3		3.8949		121.87
3Q/02		37.0			45.7			17.1		4.3			2.8		3.8949		121.87

		About 63% of the Company’s gross revenue for nine months ended September 30, 2003 is derived from exports and part of domestic sales is linked to U.S. dollars, as well as 35% of total costs. Consequently, fluctuations in the exchange rate between the two currencies have a significant impact on the operating cash flows.

		Approximately 95% of the short-term and long-term loans of the Company at 09/30/03 are denominated in U.S. dollars. As a result, exchange rate fluctuations have a significant impact on the financial expenses (Notes 6.10 and 6.15).

(c)		For the first nine months of 2003, the consolidated trade balance of US$ 2,373 million was generated:


	Consolidated (in US$ millions)

	Quarter									Accumulated

	3Q/03			2Q/03			3Q02			09/30/03			09/30/02

Exports		994			947			780			2,741			2,370
Imports		(172	)		(80	)		(180	)		(368	)		(439	)

		822			867			600			2,373			1,931


	CVRD	3

(CONSOLIDATED TRADE BALANCE LINE GRAPH)

1.2- Comments on the Company Results

The net income of the Company for the nine months ended September 30, 2003 was R$ 3,717,323 (net income of R$ 2,438,555 in the first six months and net income of R$ 1,278,768 in the third quarter), compared with net income of R$ 502,212 in the nine months ended September 30, 2002 (the earnings per share corresponds to R$ 9.68 in the nine months ended September 30, 2003 versus R$ 1.31 in the nine months ended September 30, 2002).

1.2.1- Gross Revenues

The 29.5% increase in gross revenue (R$ 7,490,599 on 09/30/03 against R$ 5,784,506 on 09/30/02) is a result of the devaluation of the real against the United States dollar, affecting 83% of the Company’s revenue, and the higher volumes sold of iron ore and pellets, as shown in the table below. The increase in oellets sales was due to growth in the Chinese, North American and European markets.


		In thousands of metric tons (except gold)

		Quarter						Accumulated

		3Q/03		2Q/03		3Q/02		09/30/03		09/30/02		D%

External market
	Iron ore - fines		23,734		21,761		20,937		66,043		63,833		3
	Iron ore - lump ore		2,052		1,599		2,013		5,255		3,679		43
	Pellets		4,026		3,618		3,646		11,815		9,553		24

			29,812		26,978		26,596		83,113		77,065		8

Internal market
	Iron ore - fines		7,863		7,240		7,751		22,712		24,499		(7	)
	Iron ore - lump ore		1,781		1,502		1,967		4,829		3,325		45
	Pellets (*)		841		708		611		2,462		2,029		21

			10,485		9,450		10,329		30,003		29,853		1

Total
	Iron ore - fines		31,597		29,001		28,688		88,755		88,332		—
	Iron ore - lump ore		3,833		3,101		3,980		10,084		7,004		44
	Pellets		4,867		4,326		4,257		14,277		11,582		23

			40,297		36,428		36,925		113,116		106,918		6

Railroad transportation			13,675		13,564		14,755		39,391		42,925		(8	)
Port services			6,515		7,411		7,007		19,550		19,531		—
Gold (kg)			442		615		1,976		1,858		9,046		(79	)
Potash			198		149		223		505		528		(4	)
Other products and services			—		—		—		—		—		—

[Additional columns below]

[Continued from above table, first column(s) repeated]


		In thousands of reais

		Quarter						Accumulated

		3Q/03		2Q/03		3Q/02		09/30/03		09/30/02		D%

External market
	Iron ore - fines		1,244,758		918,841		955,873		3,217,501		2,390,728		35
	Iron ore - lump ore		122,241		72,067		100,243		282,111		240,291		17
	Pellets		400,154		311,402		336,931		1,117,617		731,335		53

			1,767,153		1,302,310		1,393,047		4,617,229		3,362,354		37

Internal market
	Iron ore - fines		345,520		308,698		345,827		1,011,887		811,179		25
	Iron ore - lump ore		64,156		55,104		49,410		172,988		116,006		49
	Pellets (*)		123,175		95,683		84,728		337,487		226,657		49

			532,851		459,485		479,965		1,522,362		1,153,842		32

Total
	Iron ore - fines		1,590,278		1,227,539		1,301,700		4,229,388		3,201,907		32
	Iron ore - lump ore		186,397		127,171		149,653		455,099		356,297		28
	Pellets		523,329		407,085		421,659		1,455,104		957,992		52

			2,300,004		1,761,795		1,873,012		6,139,591		4,516,196		36

Railroad transportation			281,231		270,018		239,998		810,115		632,132		28
Port services			77,898		83,519		72,509		229,715		182,443		26
Gold (kg)			16,229		20,085		63,465		68,612		232,030		(70	)
Potash			81,455		63,343		81,783		217,328		181,468		20
Other products and services			9,751		7,653		9,546		25,238		40,237		(37	)

			2,766,568		2,206,413		2,340,313		7,490,599		5,784,506		29

(*)

Includes revenues derived from services with joint ventures of pelletizing in the amount of R$ 35,616, R$ 31,748, R$ 28,833, R$ 96,126 and R$ 72,988 on 3Q/03, 2Q/03, 3Q02, 09/30/03 and 09/30/02, respectively.


4	CVRD

(GROSS REVENUE PIE CHART)

1.2.2- Cost of Products and Services

The 33.6% increase in the cost of products and services (R$ 3,809,974 on 09/30/03 against R$ 2,852,228 on 09/30/02) results mainly from the rise in sales of purchased pellets, the increase in expenses for maintenance of goods and equipment, higher prices for petroleum derivatives and the effect of exchange rate variation on the portion of costs denominated in U.S. dollars (35%).

(COST OF PRODUCTS AND SERVICES PIE CHART)

By Nature


	09/30/03

	Denominated						Quarter

	R$			US$			3Q/03		%		2Q/03		%		3Q/02		%

Personnel		387,421			—			143,550		11		123,609		10		137,121		13
Material		411,587			219,681			214,149		16		206,016		17		134,898		13
Oil and gas		456,362			—			161,544		12		155,642		13		110,636		11
Outsourced services		483,453			55,246			229,259		17		179,705		15		145,693		14
Energy		99,980			—			43,021		3		32,792		3		32,500		3
Acquisition of iron ore and pellets		—			942,989			293,683		22		262,838		22		258,190		25
Depreciation and depletion		399,421			—			143,291		11		130,582		11		143,621		14
Amortization of goodwill		90,379			—			41,541		3		24,419		2		24,419		2
Others		132,972			130,483			81,204		5		95,246		7		40,613		5

Total		2,461,575			1,348,399			1,351,242		100		1,210,849		100		1,027,691		100

		65	%		35	%

[Additional columns below]

[Continued from above table, first column(s) repeated]


	Accumulated

	09/30/03		%		09/30/02		%		D%

Personnel		387,421		10		389,575		14		(1	)
Material		631,268		17		364,005		13		73
Oil and gas		456,362		12		280,599		10		63
Outsourced services		538,699		14		410,036		14		31
Energy		99,980		3		89,529		3		12
Acquisition of iron ore and pellets		942,989		25		651,506		23		45
Depreciation and depletion		399,421		10		418,765		15		(5	)
Amortization of goodwill		90,379		2		73,257		2		23
Others		263,455		7		174,956		6		51

Total		3,809,974		100		2,852,228		100		34


	CVRD	5

1.2.3- Result of Shareholdings by Business Area

The numbers reported per area do not necessarily reflect the individual results of each company, but rather the amounts effectively applicable to the business area.


	Quarter												Accumulated

Business Area	3Q/03			1Q/03			%			3Q/02			09/30/03			09/30/02			%

Ferrous Minerals
• Iron ore and pellets		158,691			(3,364	)		4,817			791,370			189,708			1,474,291			(87	)
• Manganese and ferroalloys		43,369			10,282			322			77,465			70,101			139,137			(50	)
Non-Ferrous Minerals		(26,058	)		27,192			(196	)		(52,606	)		25,110			(88,212	)		128
Logistics		8,408			(177,543	)		105			(152,770	)		(209,625	)		(286,205	)		27
Investments
• Steel		135,579			15,231			790			133,395			215,696			181,907			19
• Aluminum		130,068			266,945			(51	)		(321,132	)		617,997			(382,726	)		261
Others		37,427			12,249			206			6,397			64,569			2,514			2,468

		487,484			150,992			223			482,119			973,556			1,040,706			(6	)

Ferrous Minerals

(a)

Iron ore and pellets

•		Ferteco – An increase in the equity result of R$ 128,749 (a gain of R$ 221,144 on 09/30/03 against a gain of R$ 92,395 on 09/30/02) due to a 16.4% increase in volume of iron ore sold (12.155 thousand tons on 09/30/03 against 10,440 thousand tons on 09/30/02), offset partly by a 13.3% reduction in pellets sold (2,788 thousand tons on 09/30/03 versus 3,216 thousand tons on 09/30/02). Average pellet prices rose by 19.9% (US$ 31.31 per ton on 09/30/03 against US$ 26.11 per ton on 09/30/02), while iron ore prices remained stable (US$ 13.74 per ton on 09/30/03 compared with US$ 13.82 per ton on 09/30/02). On 09/30/03, amortization of goodwill of R$ 95,587 was booked. Ferteco was incorporated on 08/29/2003.

•		Caemi – An increase in the equity result of R$ 18,771 (a gain of R$ 38,284 on 09/30/03 against a gain of R$ 19,513 on 09/30/02) due to a 13.2% rise in sales volume (28,138 thousand tons on 09/30/03 against 24,867 thousand tons on 09/30/02) and the positive effects of exchange rate variation on debt.

•		Itaco/RDE – A reduction in the equity result of R$ 1,640,200 (loss of R$ 216,983 on 09/30/03 against a gain of R$ 1,423,217 on 09/30/02), due basically to the effect of the depreciation of the dollar against the real on net equity in the year to date (negative exchange rate variation of R$ 666,537 on 09/30/03 against positive exchange rate variation of R$ 1,614,747 on 09/30/02). In operational terms, iron ore sales increased by 7.6% (68,621 thousand tons on 09/30/03 against 63,791 thousand tons on 09/30/02) and pellet sales went up by 25.4% (9,835 thousand tons on 09/30/03 against 7,841 thousand tons on 09/30/02), including sales of its subsidiary CVRD Overseas.

•		Kobrasco – An increase in the shareholding result, due to reversion of part of the provision for losses, in the amount of R$ 98,416 (a gain of R$ 29,140 on 09/30/03 versus a loss of R$ 69,276 on 09/30/02), and also due to the positive effects of exchange rate variation on debt. In operational terms, sales increased by 20.0% (3,262 thousand tons on 09/30/03 against 2,718 thousand tons on 09/30/02) and the average price went up by 5.2% (US$ 31.66 per ton on 09/30/03 compared with US$ 30,09 per ton on 09/30/02).

•		Nibrasco – An increase in the equity result of R$ 4,888 (a gain of R$ 7,486 on 09/30/03 against a gain of R$ 2,598 on 09/30/02), caused by 0.9% higher sales volume (5,145 thousand tons on 09/30/03 against 5,099 thousand tons on 09/30/02), along with a 3.7% rise in the average price (US$ 29.76 per ton on 09/30/03 against US$ 28.69 per ton on 09/30/02).

•		Samarco – An increase in the equity result of R$ 210,575 (a gain of R$ 193,256 on 09/30/03 against a loss of R$ 17,319 on 09/30/02), caused by the positive effects of exchange rate variation on debt. In operational terms, sales volume rose by 14.9% (12,193 thousand tons on 09/30/03 versus 10,608 thousand tons on 09/30/02) and the average price went up by 7.4% (US$ 30.48 per ton on 09/30/03 against US$ 28.38 per ton on 09/30/02).

(b)

Manganese and ferroalloys

•

Sibra – A reduction in the equity result of R$ 29,165 (a gain of R$ 74,097 on 09/30/03 against a gain of R$ 103,262 on 09/30/02), due to the negative effects of exchange rate variation on accounts receivable in the 3rd quarter 2003, offset partly by the positive effects of exchange rate variation on export revenues. In operational terms, sales of ferroalloys fell by 2.9% (235 thousand tons on 09/30/03 against 242 thousand tons on 09/30/02), sales of manganese went up by 30.0% (967 thousand tons on 09/30/03 against 744 thousand tons on


6	CVRD

09/30/02), the average price of ferroalloys increased by 23.6% (US$ 572.44 per ton on 09/30/03 versus US$ 463.16 per ton on 09/30/02) and the average manganese price decreased by 10.3% (US$ 43.78 per ton on 09/30/03 against US$ 48.80 per ton on 09/30/02).

Non-ferrous Minerals

•

Pará Pigmentos – An increase in the shareholding result of R$ 113,203 (a gain of R$ 25,145 on 09/30/03 against a loss of R$ 88,058 on 09/30/02), caused by the positive effects of in the 3rd quarter 2003 of exchange rate variation on debt. In operational terms, sales volume increased by 30.2% (306 thousand tons on 09/30/03 versus 235 thousand tons on 09/30/02) and the average price decreased by 3.0% (US$ 151.72 per ton on 09/30/03 against US$ 156.35 per ton on 09/30/02).

Logistics

•		Docenave – A fall in the equity result of R$ 73,176 (a gain of R$ 33,838 on 09/30/03 against a gain of R$ 107,014 on 09/30/02), due to the effect of the fall of the dollar against the real in the 3rd quarter 2003 on dollarized assets. In operational terms, bulk cargo transported rose by 23.3% (7,201 thousand tons on 09/30/03 versus 5,839 tons on 09/30/02), and the number of tugboat operations also increased by 14.1% (5,669 maneuvers on 09/30/03 against 4,968 maneuvers on 09/30/02), offset partly by the 16.5% reduction in container movement (42,919 TEUs on 09/30/03 against 51,407 TEUs on 09/30/02). The 51.3% jump in the average freight rate (US$ 7.26 per ton on 09/30/03 against US$ 4.80 per ton on 09/30/02) was basically neutralized by the rise of 90% in vessel charter costs, caused mainly by higher demand in the Asian market for charter of Panamax/Cape Size vessels in 2003.

•		Docepar – In the first quarter of 2002, a provision for losses of R$ 50.735 was booked on fiscal assets without perspective for short-term realization.

•		FCA – On 09/30/03, a negative shareholding result of R$ 283,688 was registered (R$ 127,370 of provision for losses and R$ 156,318 of amortization of goodwill) against R$ 217,287 on 09/30/02 (R$ 131,115 of provision for losses and R$ 86,172 of amortization of goodwill), basically caused by recognition of lease and concession costs, in the amount of R$ 238,051 in the second quarter 2003. CVRD’s interest in this investment is held through its subsidiary Mineração Tacumã.

•		MRS – An increase in the equity result of R$ 124,918 (a gain of R$ 42,494 on 09/30/03 compared with a loss of R$ 82,424 on 09/30/02), basically due to the positive effects of exchange rate variation on debt.

Shareholdings

(a)

Steel

•		CSI – A reduction in the equity result of R$ 477,697 (a loss of R$ 125,536 on 09/30/03 against a gain of R$ 352,161 on 09/30/02), mainly caused by the fall in the value of the dollar against the real (negative exchange rate variation of R$ 127,626 on 09/30/03 positive against exchange rate variation of R$ 303,682 on 09/30/02). In operational terms, there was an 8.1% decrease in the volume of steel products sold (1,397 thousand tons on 09/30/03 versus 1,520 thousand tons on 09/30/02).

•		CST – An increase in the equity result of R$ 230,384 (a gain of R$ 187,477 on 09/30/03 against a loss of R$ 42,907 on 09/30/02), caused basically by the positive effects of exchange rate variation on debt. Operationally, the average price went up 33.4%, offset in part by a 19.1% fall in sales volume (2,871 thousand tons on 09/30/03 against 3,547 thousand tons on 09/30/02).

•		Usiminas - An increase in the equity result of R$ 228,814 (a gain of R$ 121,361 on 09/30/03 compared with a loss of R$ 107,453 on 09/30/02), caused mainly by a reduction in the negative effects of exchange rate variation on debt.

(b)

Aluminum

•		Albras - An increase in the equity result of R$ 496,372 (a gain of R$ 275,897 on 09/30/03 against a loss of R$ 220,475 on 09/30/02), due mainly to the positive effects of exchange rate variation on debt. Operationally, aluminum sales volume went up by 6.0% (320 thousand tons on 09/30/03 against 302 thousand tons on 09/30/02) and the average price rose by 2.3% (US$ 1,343.84 per ton on 09/30/03 against US$ 1,313.92 per ton on 09/30/02).

•		Alunorte - An increase in the equity result of R$ 371,601 (a gain of R$ 157,819 on 09/30/03 versus a loss of R$ 213,782 on 09/30/02), due principally to the positive effects of exchange rate variation on debt. In operational terms, the amount of alumina sold went up by 39.9% (1,658 thousand tons on 09/30/03 against 1,185 thousand tons on 09/30/02), caused by the start-up of the 3rd production line in March 2003, along with a 7.4% increase in the average alumina sales price (US$ 177.80 per ton on 09/30/03 against US$ 165.51 per ton on 09/30/02). On 09/30/03, R$ 4,989 of amortization of goodwill was booked.

•		MRN - An increase in the equity result of R$ 82,368 (a gain of R$ 92,624 on 09/30/03 against a gain of R$ 10,256 on 09/30/02), caused by a 40.5% increase in sales volume (9,757 thousand tons on 09/30/03 against 6,946 thousand tons on 09/30/02), in turn due to the


	CVRD	7

		conclusion of expansion of capacity begun in April 2000, along with a 2.0% increase in the average bauxite price (US$ 19.13 per ton on 09/30/03 versus US$ 18.75 per ton on 09/30/02).

•		Valesul - An increase in the equity result of R$ 1,308 (a gain of R$ 23,751 on 09/30/03 against a gain of R$ 22,443 on 09/30/02), due to a 9.5% rise in sales volume (69 thousand tons on 09/30/03 against 63 thousand tons on 09/30/02) and a 0.7% increase in the average price of aluminum (US$ 1,691.54 per ton on 09/30/03 against US$ 1,679.61 per ton on 09/30/02).

•		Aluvale - An increase in the equity result (own operations) of R$ 2,569 (a gain of R$ 25,012 on 09/30/03 against a gain of R$ 22,443 on 09/30/02), basically caused by the fiscal benefits of paying interest on stockholders’ equity.

•		Itaco - An increase in the equity result of R$ 52,093 (a gain of R$ 47,883 on 09/30/03 against a loss of R$ 4,210 on 09/30/02), due to a 25.4% rise in the average price of alumina, 13.5% for bauxite and 0.6% for aluminum, while the sales volume of aluminum, alumina and bauxite rose by 6.2%, 288.5% and 1.7%, respectively.

1.2.4- Operating Expenses

The operating expenses increased R$ 91,777 (R$ 819,118 on 09/30/03 compared to R$ 727,341 on 09/30/02), due to:

•		selling expenses: due to an increase in commissions (in turn caused by higher export sales); and

•		expenses for research and studies (mainly on copper and nickel projects).

1.2.5- Net Financial Result

The net financial result increased R$ 4,478,717 (revenue of R$ 655,014 on 09/30/03 compared to expense of R$ 3,823,703 on 09/30/02), mainly due to the positive effect of exchange rate variation on the Company’s net debt on 09/30/03 (Note 6.15).

1.2.6- Cash Flow

The operating cash flow measured by EBITDA (earnings before interest, income tax and depreciation, amortization and depletion) was R$ 3,637,366 on 09/30/03, against R$ 2,614,971 on 09/30/02, an increase of 39.1%.


	Quarter									Accumulated

	3Q/03			2Q/03			3Q/02			09/30/03			09/30/02

Net operating revenue		2,679,622			2,119,013			2,259,457			7,215,406			5,565,489
Cost of products		(1,351,242	)		(1,210,849	)		(1,027,691	)		(3,809,974	)		(2,852,228	)
Operating expenses		(226,070	)		(308,491	)		(312,634	)		(819,118	)		(727,341	)

Operating profit		1,102,310			599,673			919,132			2,586,314			1,985,920
Depreciation / amortization of goodwill		191,629			162,565			174,132			515,590			508,944

		1,293,939			762,238			1,093,264			3,101,904			2,494,864
Dividends received		212,218			185,260			30,465			499,865			120,107
Write-off		—			35,597	(*)		—			35,597			—

EBITDA R$		1,506,157			983,095			1,123,729			3,637,366			2,614,971

US$ average		2.9332			2.9854			3.1227			3.1311			2.6789

EBITDA US$		513,486			329,301			359,855			1,161,690			976,136

(*) See Note 6.18.


8	CVRD

1.2.7- Income Tax and Social Contribution

Income tax and social contribution were an expense of R$ 497,561 compared with a credit of R$ 1,188,596 on 09/30/02, mainly caused by the increase in the tax basis (income before income tax and social contribution less the equity method result, goodwill and provisions for nondeductible losses) from negative R$ 3,364,551 on 09/30/03 to positive R$ 2,244,190 on 09/30/02, partly reduced by the tax benefit of R$ 657,713 on 09/30/03 provided by paying interest on stockholders’ equity (R$ 349,753 on 09/30/02) (Note 6.7).

1.2.8- Interest on Stockholders’ Equity

During 2003, CVRD deliberated a total of R$ 1,934,552 (Note 6.19) as interest on stockholders’ equity, in the following tranches:


			US$ million

			Amount at the		Amount at the
Payment date	Value		deliberation date		payment date

04/30/03		621,820		200		215
10/31/03		744,649		250		261
10/31/03		568,083		200		199

		1,934,552		650		675


	CVRD	9

PART II

QUARTERLY INFORMATION AND NOTES TO THE QUARTERLY INFORMATION

(A free translation of the original in Portuguese relating to the quarterly information prepared in accordance with the requirements of
Accounting Practices Generally Accepted in Brazil)


2- BALANCE SHEET		In thousands of reais


		Notes		09/30/03		06/30/03

Assets
Current assets
	Cash and cash equivalents		6.4		964,793		263,946
	Accounts receivable from customers		—		1,469,650		1,080,445
	Related parties		6.5		1,426,137		1,053,193
	Inventories		6.6		550,060		443,428
	Taxes to recover or offset		—		476,758		392,613
	Deferred income tax and social contribution		6.7		459,286		631,466
	Others		—		269,954		262,079

					5,616,638		4,127,170

Long-term receivables
	Related parties		6.5		757,337		776,542
	Loans and financing		—		148,095		188,693
	Deferred income tax and social contribution		6.7		777,046		668,092
	Judicial deposits		6.11		941,570		1,172,822
	Others		—		22,295		87,868

					2,646,343		2,894,017

Permanent assets
	Investments		6.8		12,134,149		11,557,530
	Property, plant and equipment		6.9		10,042,656		9,216,859

					22,176,805		20,774,389

					30,439,786		27,795,576

Liabilities and stockholders’ equity
Current liabilities
	Short-term debt		6.10		105,807		102,920
	Current portion of long-term debt		6.10		2,559,681		2,394,227
	Payable to suppliers and contractors		—		915,439		804,520
	Related parties		6.5		1,011,631		1,085,334
	Interest on stockholders’ equity		—		1,215,625		379,286
	Payroll and related charges		—		213,223		176,198
	Pension Plan - Valia		—		81,211		83,896
	Others		—		288,737		270,738

					6,391,354		5,297,119

Long-term liabilities
	Long-term debt		6.10		3,006,897		2,563,575
	Related parties		6.5		3,976,621		2,982,995
	Deferred income tax and social contribution		6.7		83,975		84,035
	Provisions for contingencies		6.11		1,296,586		1,441,780
	Pension Plan - Valia		—		501,590		518,085
	Others		—		649,457		720,005

					9,515,126		8,310,475

Stockholders’ equity
	Paid-up capital		6.13		6,300,000		6,300,000
	Revenue reserves		—		8,233,306		7,887,982

					14,533,306		14,187,982

					30,439,786		27,795,576

The additional information, notes and attachment I are an integral part of these statements.


10	CVRD

(A free translation of the original in Portuguese relating to the quarterly information prepared in accordance with the requirements of
Accounting Practices Generally Accepted in Brazil)


3- STATEMENT OF INCOME		In thousands of reais


					Quarter									Accumulated

			Notes		3Q/03			2Q/03			3Q/02			09/30/03			09/30/02

Operating revenues
	Sales of ore and metals
		Iron ore and pellets		1.2.1		2,300,004			1,761,795			1,873,012			6,139,591			4,516,196
		Gold		1.2.1		16,229			20,085			63,465			68,612			232,030
		Potash		1.2.1		81,455			63,343			81,783			217,328			181,468

						2,397,688			1,845,223			2,018,260			6,425,531			4,929,694
	Railroad and port services			1.2.1		359,129			353,537			312,507			1,039,830			814,575
	Others			1.2.1		9,751			7,653			9,546			25,238			40,237

						2,766,568			2,206,413			2,340,313			7,490,599			5,784,506
Value Added taxes						(86,946	)		(87,400	)		(80,856	)		(275,193	)		(219,017	)

Net operating revenues						2,679,622			2,119,013			2,259,457			7,215,406			5,565,489

Cost of products and services
	Ores and metals			—		(1,236,927	)		(1,088,605	)		(909,677	)		(3,468,419	)		(2,537,913	)
	Railroad and port services			—		(109,223	)		(117,544	)		(107,318	)		(328,281	)		(286,487	)
	Others			—		(5,092	)		(4,700	)		(10,696	)		(13,274	)		(27,828	)

				1.2.2		(1,351,242	)		(1,210,849	)		(1,027,691	)		(3,809,974	)		(2,852,228	)

Gross profit						1,328,380			908,164			1,231,766			3,405,432			2,713,261
Gross margin						49.6	%		42.9	%		54.5	%		47.2	%		48.8	%
Operating expenses
	Selling			—		(55,927	)		(45,319	)		(43,851	)		(152,926	)		(107,277	)
	Administrative			6.18		(97,097	)		(96,577	)		(91,166	)		(282,432	)		(276,198	)
	Research and development			—		(64,412	)		(35,890	)		(47,434	)		(138,557	)		(99,501	)
	Other operating expenses			6.18		(8,634	)		(130,705	)		(130,183	)		(245,203	)		(244,365	)

						(226,070	)		(308,491	)		(312,634	)		(819,118	)		(727,341	)

Operating profit before financial result and result of equity investments						1,102,310			599,673			919,132			2,586,314			1,985,920
Result of equity investments
	Gain on investments accounted for by the equity method			6.8		246,390			370,497			967,474			1,035,507			1,877,903
	Amortization of goodwill			6.8		(113,258	)		(184,639	)		(108,822	)		(391,069	)		(278,536	)
	Provision for losses			6.8		354,352			(34,866	)		(376,533	)		329,118			(558,661	)

						487,484			150,992			482,119			973,556			1,040,706
Financial result
	Financial expenses, net			6.15		(85,133	)		(102,333	)		(510,142	)		(322,495	)		(727,971	)
	Monetary and exchange rate variation, net			6.15		(187,892	)		885,477			(2,102,715	)		977,509			(3,095,732	)

						(273,025	)		783,144			(2,612,857	)		655,014			(3,823,703	)

Operating profit						1,316,769			1,533,809			(1,211,606	)		4,214,884			(797,077	)
Discontinued operations						—			—			110,693			—			110,693

Income before income tax and social contribution						1,316,769			1,533,809			(1,100,913	)		4,214,884			(686,384	)
Income tax and social contribution				6.7		(38,001	)		(259,082	)		884,737			(497,561	)		1,188,596

Net income for the period						1,278,768			1,274,727			(216,176	)		3,717,323			502,212

Number of shares outstanding at the end of the period (in thousands)						383,840			383,840			383,839			383,840			383,839

Net earnings per share outstanding at the end of the period (R$)						3.33			3.32			(0.56	)		9.68			1.31

The additional information, notes and attachment I are an integral part of these statements.


CVRD	11

(A free translation of the original in Portuguese relating to the quarterly information prepared in accordance with the requirements of Accounting Practices Generally Accepted in Brazil)


4- STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY		In thousands of reais


		Capital reserves								Revenue reserves

				Result of			Price-level
		Paid-up		share			restatement									Unrealized					Fiscal			Treasury
		capital		exchange			Law 8,200/91			Expansion			Depletion			income			Legal		incentives			stock

On December 31, 2001			4,000,000		3,426			440,258			3,869,083			1,506,513			1,271,884			752,535		53,969			(131,105	)

Capitalization of reserves			1,000,000		(3,426	)		(440,258	)		—			(502,347	)		—			—		(53,969	)		—
Realization of revenue reserves			—		—			—			—			—			(526,477	)		—		—			—
Provision for pension plan liabilities			—		—			—			—			—			—			—		—			—
Treasury shares			—		—			—			—			—			—			—		—			(228	)
Net income for the year			—		—			—			—			—			—			—		—			—
Proposed appropriations:
	Interest on stockholders’ equity		—		—			—			—			—			—			—		—			—
	Appropriation to revenue reserves		—		—			—			1,408,499			—			—			102,163		—			—

On December 31, 2002			5,000,000		—			—			5,277,582			1,004,166			745,407			854,698		—			(131,333	)

Capitalization of reserves			1,300,000		—			—			(1,300,000	)		—			—			—		—			—
Treasury shares			—		—			—			—			—			—			—		—			15
Net income for the period			—		—			—			—			—			—			—		—			—
Stockholders’ equity			—		—			—			—			—			—			—		—			—

On September 30, 2003			6,300,000		—			—			3,977,582			1,004,166			745,407			854,698		—			(131,318	)

[Additional columns below]

[Continued from above table, first column(s) repeated]


		Retained
		earnings			Total

On December 31, 2001			—			11,766,563

Capitalization of reserves			—			—
Realization of revenue reserves			526,477			—
Provision for pension plan liabilities			(30,381	)		(30,381	)
Treasury shares			—			(228	)
Net income for the year			2,043,254			2,043,254
Proposed appropriations:
	Interest on stockholders’ equity		(1,028,688	)		(1,028,688	)
	Appropriation to revenue reserves		(1,510,662	)		—

On December 31, 2002			—			12,750,520

Capitalization of reserves			—			—
Treasury shares			—			15
Net income for the period			3,717,323			3,717,323
Stockholders’ equity			(1,934,552	)		(1,934,552	)

On September 30, 2003			1,782,771			14,533,306

The additional information, notes and attachment I are an integral part of these statements.


12	CVRD

(A free translation of the original in Portuguese)


5- STATEMENT OF CASH FLOWS (ADDITIONAL INFORMATION)		In thousands of reais


				Quarter									Accumulated

				3Q/03			2Q/03			3Q/02			09/30/03			09/30/02

Cash flows from operating activities:
	Net income for the period				1,278,768			1,274,727			(216,176	)		3,717,323			502,212
	Adjustments to reconcile net income for the period with cash provided by operating activities:
			Result of equity investments		(487,484	)		(150,992	)		(482,119	)		(973,556	)		(1,040,706	)
			Depreciation, amortization and depletion		143,900			140,447			131,566			419,023			417,540
			Deferred income tax and social contribution		73,717			102,078			(884,733	)		376,273			(1,192,561	)
			Discontinued operations		—			—			(110,693	)		—			(110,693	)
			Financial expenses and monetary and exchange rate variations on assets and liabilities, net		178,335			(994,774	)		2,585,323			(1,129,089	)		3,865,747
			Loss on disposal of property, plant and equipment		(16,979	)		8,775			4,996			5,436			23,136
			Amortization of goodwill in the cost of products sold		41,541			24,419			24,419			90,379			73,257
			Net losses on derivatives		(36,340	)		(6,875	)		131,016			(31,650	)		130,062
			Dividends/interest on stockholders’ equity received		212,218			185,260			30,465			499,865			120,107
			Others		(19,895	)		12,871			202,018			(7,221	)		292,504

					1,367,781			595,936			1,416,082			2,966,783			3,080,605

	Decrease (increase) in assets:
	Accounts receivable				(58,130	)		248,170			(422,155	)		282,343			(515,205	)
	Inventories				(32,741	)		(29,571	)		17,710			(62,809	)		61,994
	Others				137,849			(70,777	)		2,422			73,695			(30,908	)

					46,978			147,822			(402,023	)		293,229			(484,119	)

	Increase (decrease) in liabilities:
	Suppliers and contractors				(103,185	)		142,660			79,102			17,474			74,871
	Payroll and related charges and others				22,507			34,918			58,488			30,591			37,190
	Others				(237,690	)		92,765			77,193			(84,365	)		106,695

					(318,368	)		270,343			214,783			(36,300	)		218,756

	Net cash provided by operating activities				1,096,391			1,014,101			1,228,842			3,223,712			2,815,242

Cash flows from investing activities:
	Loans and advances receivable				(1,028,846	)		153,830			302,988			(1,062,723	)		(571,757	)
	Guarantees and deposits				205,077			(400,912	)		(96,887	)		(230,530	)		(138,337	)
	Additions to investments				69,688			(315,618	)		(2,655	)		(246,402	)		(4,852	)
	Additions to property, plant and equipment				(772,271	)		(574,115	)		(332,281	)		(1,731,799	)		(1,039,157	)
	Proceeds from disposal of property, plant and equipment/investments				62,993			105,337			1,884			168,767			3,947

	Net cash used in investing activities				(1,463,359	)		(1,031,478	)		(126,951	)		(3,102,687	)		(1,750,156	)

Cash flows from financing activities:
	Short-term debt				(249,558	)		(29,017	)		(681,369	)		(610,826	)		(250,883	)
	Long-term debt				1,599,244			330,249			368,394			2,506,690			908,180
	Repayments:
		Related parties			—			—			—			—			(89,764	)
		Financial institutions			(275,696	)		(264,950	)		(100,081	)		(685,101	)		(289,794	)
	Interest on stockholders’ equity paid				(98,123	)		(619,921	)		(225	)		(718,248	)		(777,483	)
	Treasury stocks				2			13			—			15			(243	)

	Net cash used in financing activities				975,869			(583,626	)		(413,281	)		492,530			(499,987	)

	Increase (decrease) in cash and cash equivalents				608,901			(601,003	)		688,610			613,555			565,099
	Cash and cash equivalents, beginning of the period				263,946			864,949			521,835			259,292			645,346
	Cash of incorporated companies				91,946			—			—			91,946			—

	Cash and cash equivalents, end of the period				964,793			263,946			1,210,445			964,793			1,210,445

	Cash paid during the period for:
		Short-term interest			—			—			(13,011	)		(16,428	)		(33,420	)
		Long-term interest net of capitalization			(83,313	)		(64,772	)		(86,300	)		(231,692	)		(191,221	)
		Income tax and social contribution paid			—			(46,704	)		—			(46,704	)		(3,967	)
		Non-cash transactions:
		Transfer of advance for future capital increase into investments			465,354			1,297,910			72,268			1,795,758			165,174
		Loans/advances transferred to equity investment			233,369			—			—			233,369			—
		Additions to property, plant and equipment with capitalization of interest			22,330			(91,605	)		77,041			(94,374	)		222,212

CVRD

(A free translation of the original in Portuguese relating to the quarterly information prepared in accordance with the requirements of
Accounting Practices Generally Accepted in Brazil)

6- NOTES TO THE QUARTERLY INFORMATION AT SEPTEMBER 30, 2003 AND 2002

Expressed in thousands of reais

6.1- Operations

Companhia Vale do Rio Doce is a publicly traded corporation whose predominant activities are mining, processing and sale of iron ore, pellets, gold and potash, as well as port and railroad transportation services and power generation. In addition, through its direct and indirect subsidiaries and jointly controlled companies, CVRD operates in manganese and ferroalloys, steel, aluminum, kaolin, logistics and geological studies and technological research services.

6.2- Presentation of Quarterly information

The quarterly information has been prepared according to the accounting principles provided for in Brazilian corporate legislation as well as the rules and guidelines issued by the Comissão de Valores Mobiliários - CVM (Brazilian Securities Commission) and IBRACON - Institute dos Auditores Independentes do Brasil (Brazilian Independent Auditors Institute).

In order to provide better information to the market, the Company is presenting the Statement of Cash Flow. The disclosure of this statement is encouraged by the CVM according to the Official Instruction 01/00 of 01/31/00.

6.3- Significant Accounting Policies

(a)		The Company adopts the accrual basis of accounting;

(b)		Assets and liabilities that are realizable or due more than twelve months after the quarterly information date are classified as long-term;

(c)		Marketable securities, classified as cash and cash equivalents, are stated at cost plus accrued income earned to the quarterly information date;

(d)		Inventories are stated at average purchase or production cost, and imports in transit at the cost of each item, not exceeding market or realizable value;

(e)		Assets and liabilities in foreign currencies are translated at exchange rates in effect at the quarterly information date, and those in local currency, when applicable, are restated based on contractual indices;

(f)		Investments in subsidiaries, jointly controlled companies and affiliated companies are accounted for by the equity method, based on the stockholders’ equity of the investees, and when applicable increased/decreased by goodwill and negative goodwill to be amortized and provision for losses. Other investments are recorded at cost, less provision for unrealized losses when applicable; and

(g)		Property, plant and equipment, including interest incurred during the construction period of large-scale projects, are recorded at historic cost (increased by monetary restatement up to 1995) and depreciated by the straight-line method, at rates that take into consideration the useful lives of the assets. Depletion of mineral reserves is based on the ratio between production and estimated capacity.

6.4- Cash and Cash Equivalents


	09/30/03		06/30/03

Marketable securities related to CDI (*)		906,871		218,042
Fixed-yield bond investments (funds)		48,311		26,485
Government securities (NBC-E, NTN-D, LFT)		6,330		15,540
Others		3,281		3,879

		964,793		263,946

(*)

For part of these investments the Company contracted swap operations with financial institutions related to interest rate and/or currency variations.

CVRD

6.5- Transactions with Related Parties

Derived from sales and purchases of products and services or from loans under normal market conditions, with maturities up to the year 2013, as follows:


	Assets				Liabilities

	09/30/03		06/30/03		09/30/03		06/30/03

Subsidiaries
ALUNORTE - Alumina do Norte do Brasil S.A.		802,603		828,161		33,560		10,669
CVRD Overseas Ltd.		39,980		84,149		1,723,550		1,182,540
Itabira Rio Doce Company Limited - ITACO		622,343		540,677		1,115,939		646,792
Ferteco Internacional		279,005		—		12,954		—
Mineração Andirá Ltda. (participates in Mineração Serra do Sossego S.A.)		324		78,100		1,901		—
Rio Doce International Finance Ltd.		815,368		166,320		1,720,025		1,898,902
Salobo Metais S.A.		221,793		222,249		—		—
SIBRA Eletrosiderúrgica Brasileira S.A.		9,687		26,886		5,063		4,986
Others		133,442		212,091		252,190		297,823

		2,924,545		2,158,633		4,865,182		4,041,712

Jointly controlled companies
Companhia Coreano-Brasileira de Pelotização - KOBRASCO		160,460		159,751		113,367		13,271
Companhia Hispano-Brasileira de Pelotização - HISPANOBRÁS		65,574		54,031		97,625		62,190
Companhia Nipo-Brasileira de Pelotização - NIBRASCO		89,624		92,859		66,831		92,389
Companhia Ítalo-Brasileira de Pelotização - ITABRASCO		50,531		46,029		35,990		37,665
Others		120,145		193,685		281,399		181,475

		486,334		546,355		595,212		386,990

Affiliates		34,897		29,331		676		565

		3,445,776		2,734,319		5,461,070		4,429,267

Represented by:
Trade balances (sales and purchases of products and services) (*)		1,262,302		904,584		472,818		360,938
Short-term financial balances		1,426,137		1,053,193		1,011,631		1,085,334
Long-term financial balances		757,337		776,542		3,976,621		2,982,995

		3,445,776		2,734,319		5,461,070		4,429,267

(*) Included in “Accounts receivable from customers” and “Payable to suppliers and contractors”.

6.6- Inventories


		09/30/03		06/30/03

Finished products
	.Iron ore and pellets		235,870		174,516
	.Others		4,033		13,726

			239,903		188,242
Spare parts and maintenance supplies			310,157		255,186

			550,060		443,428

CVRD

6.7- Deferred Income Tax and Social Contribution

Income of the Company is subject to the normal tax system. The balances of deferred assets and liabilities are presented as follows:


		Deferred assets				Deferred liabilities

		09/30/03		06/30/03		09/30/03		06/30/03

Tax loss carryforward			125,083		76,314		—		—

Temporary differences:
	. Pension Plan		210,542		215,704		—		—
	. Contingent liabilities		369,027		384,787		—		—
	. Provision for losses on assets		369,524		500,741		—		—
	. Provision for losses on derivative financial instruments		96,226		75,155		—		—
	. Others		65,930		46,857		—		—

			1,111,249		1,223,244		—		—

Accelerated depreciation			—		—		9,020		9,239
Long-term sales			—		—		69,433		69,338
Others			—		—		6,140		6,076

Total			1,236,332		1,299,558		84,593		84,653

Short-term - liabilities registred in “others”			459,286		631,466		618		618
Long-term			777,046		668,092		83,975		84,035

			1,236,332		1,299,558		84,593		84,653

The deferred assets and liabilities regarding income tax and social contribution arising from tax losses, negative social contribution bases and temporary differences are recognized from an accounting standpoint considering an analysis of likely future results, based on economic and financial projections prepared in light of internal assumptions and macroeconomic, commercial and fiscal scenarios. These projections can change in the future. The maturities of the credits realization didn’t have relevant changes in comparison to the maturities discloused on December/2002.

In addition to the credits recorded, the Company has a lawsuit pending claiming an additional 51.8% monetary restatement for tax purposes applied to the months of January and February 1989 (“Plano Verão” monetary plan). A favorable ruling has already been obtained for compensation of credits corresponding to 42.7% instead of the 51.8% requested. The amount of these credits covered by the ruling totals approximately R$ 309,225 and the accounting effects have not yet been recognized in the quarterly information.

The amounts reported as income tax and social contribution which affected income for the period are as follows:


		Quarter									Accumulated

		3Q/03			2Q/03			3Q/02			09/30/03			09/30/02

Income before income tax and social contribution			1,316,769			1,533,809			(1,100,913	)		4,214,884			(686,384	)
(-) Equity in results of subsidiaries and affiliated companies			(246,390	)		(370,497	)		(967,474	)		(1,035,507	)		(1,877,903	)
(+) Non-deductible goodwill and provisions for losses			60,621			52,920			243,049			185,174			320,097

			1,131,000			1,216,232			(1,825,338	)		3,364,551			(2,244,190	)
Income tax and social contribution at combined tax rates			34	%		34	%		34	%		34	%		34	%

Federal income tax and social contribution at statutory rates			(384,539	)		(413,519	)		620,615			(1,143,947	)		763,025
Adjustments to net income which modify the effect on the result for the period:
	. Income tax benefit from interest on stockholders’ equity		317,337			128,958			227,627			657,713			349,753
	. Fiscal incentives		18,502			52,150			—			70,652			—
	. Others		10,699			(26,671	)		36,495			(81,979	)		75,818

Income tax and social contribution			(38,001	)		(259,082	)		884,737			(497,561	)		1,188,596

CVRD

6.8- Investments


									Investment participations
						Adjusted
	Partici-		Adjusted			net income			Investments
	pation		stockholders’			(loss) for
	%		equity			the period			09/30/03			06/30/03

Iron ore and pellets
Caemi Mineração e Metalurgia S.A. (f, g, j)		60.23		868,499			294,858			514,931			140,592
KOBRASCO (b)		50.00		(49,072	)		58,278			(24,535	)		(26,909	)
HISPANOBRÁS (b)		50.89		97,800			16,096			49,771			49,175
ITABRASCO (b)		50.90		68,819			13,015			35,029			33,117
NIBRASCO (b)		51.00		98,875			14,681			50,427			41,997
CVRD Overseas Ltd. (a, b)		100.00		418,367			81,552			418,367			397,356
Ferteco Mineração S.A. (b, i)		100.00		—			243,379			—			559,686
Gulf Industrial Investment Co. - GIIC (a, b)		50.00		218,186			52,944			109,093			107,738
ITACO/ RDE (a, b)		100.00		1,023,886			(298,535	)		1,023,886			2,182,270
Minas da Serra Geral S.A. - MSG (b)		50.00		98,252			17,833			49,127			37,425
Samarco Mineração S.A. (g)		50.00		658,437			386,512			329,219			320,560
Incorporated companies (d)		—		—			—			—			—
Others (b)										234,531			167,255

										2,789,846			4,010,262
Manganese and ferroalloys
Rio Doce Manganèse Europe - RDME (a, b)		100.00		169,435			(20,083	)		169,435			158,338
SIBRA Eletrosiderúrgica Brasileira S.A. (b)		99.31		365,275			72,159			362,755			333,703
Urucum Mineração S.A. (b)		100.00		52,545			18,738			52,545			47,459
Others (b)										43,968			37,554

										628,703			577,054
Non-ferrous
Mineração Serra do Sossego (b, h)		100.00		519,524			—			519,524			519,537
Pará Pigmentos S.A. (b)		82.04		82,088			60,160			67,345			(11,197	)
Ferro-Gusa Carajás (b)		100.00		106,794			—			106,794			—
Salobo Metais S.A. (b, h)		100.00		209,751			—			209,751			106,437
Others (b)										15,671			15,177

										919,085			629,954
Logistics
Companhia Ferroviária do Nordeste (b)		32.40		(142,216	)		(26,135	)		(46,078	)		(42,612	)
DOCEPAR S.A. (b)		100.00		25,325			11,169			—			—
Ferrovia Centro-Atlântica S.A. (g)		99.92		111,708			(283,688	)		111,619			(608,687	)
MRS Logística S.A. (c, g)		29.35		47,908			179,203			14,061			(10,960	)
DOCENAVE (b)		100.00		255,440			27,522			255,439			301,613
Sepetiba Tecon S.A. (b)		50.00		(33,118	)		(1,432	)		(16,559	)		(13,253	)
TVV - Terminal de Vila Velha S.A. (b)		99.89		58,615			6,922			58,550			58,755
Companhia Portuária da Baía de Sepetiba (b)		100.00		155,976			—			155,976			—
Others (b)										(10,222	)		2,859

										522,786			(312,285	)
Steel
California Steel Industries, Inc - CSI (a, b)		50.00		626,854			(203,998	)		313,427			320,601
CST (c, e, f, g)		28.02		3,416,321			812,084			957,253			871,387
DOCEPAR S.A. (b)		100.00		25,325			11,169			—			—
Rio Doce Limited (a, b)		100.00		305,827			—			305,827			290,463
USIMINAS (b, c, f)		11.46		4,166,252			1,058,995			477,453			439,719
Others (b)										(400	)		(400	)

										2,053,560			1,921,770
Aluminum
ALBRAS - Alumínio Brasileiro S.A. (b)		51.00		797,715			540,976			406,835			370,576
ALUNORTE (b)		57.03		788,738			276,729			449,817			395,508
Itabira Rio Doce (ITACO) (b)		—		—			—			—			—
Mineração Rio do Norte S.A. (b)		40.00		825,693			231,558			330,278			322,820
Mineração Vera Cruz S.A. (b)		100.00		39,518			—			39,518			39,518
ALUVALE - own operations (b)		100.00		60,629			25,012			60,629			64,793
Valesul Alumínio S.A. (b)		54.51		286,057			43,566			155,929			148,614

										1,443,006			1,341,829
Others
CELMAR (b, i)		100.00		—			18,233			—			(144,807	)
DOCEPAR S.A. (b)		100.00		25,325			11,169			25,325			30,436
FOSFERTIL (f, g)		11.12		595,860			193,389			66,260			68,436
Florestas Rio Doce S.A. (b)		99.85		181,560			14,279			181,288			160,289
Others (b)										16,150			14,211

										289,023			128,565

										8,646,009			8,297,149

[Additional columns below]

[Continued from above table, first column(s) repeated]


	Investment participations

	Advance for future				Goodwill and negative
	capital increase				goodwill

	09/30/03		06/30/03		09/30/03			06/30/03

Iron ore and pellets
Caemi Mineração e Metalurgia S.A. (f, g, j)		—		—		1,325,096			439,543
KOBRASCO (b)		—		—		—			—
HISPANOBRÁS (b)		—		—		—			—
ITABRASCO (b)		—		—		—			—
NIBRASCO (b)		—		—		—			—
CVRD Overseas Ltd. (a, b)		—		—		—			—
Ferteco Mineração S.A. (b, i)		—		—		719,119			774,100
Gulf Industrial Investment Co. - GIIC (a, b)		—		—		—			—
ITACO/ RDE (a, b)		—		—		—			—
Minas da Serra Geral S.A. - MSG (b)		—		—		—			—
Samarco Mineração S.A. (g)		—		—		—			—
Incorporated companies (d)		—		—		681,438			705,857
Others (b)		—		—		30,689			33,050

		—		—		2,756,342			1,952,550
Manganese and ferroalloys
Rio Doce Manganèse Europe - RDME (a, b)		—		—		—			—
SIBRA Eletrosiderúrgica Brasileira S.A. (b)		612		612		167,764			187,094
Urucum Mineração S.A. (b)		—		—		—			—
Others (b)		—		—		—			—

		612		612		167,764			187,094
Non-ferrous
Mineração Serra do Sossego (b, h)		486,701		—		57,269			57,269
Pará Pigmentos S.A. (b)		—		—		—			—
Ferro-Gusa Carajás (b)		—		—		—			—
Salobo Metais S.A. (b, h)		8,163		15,974		—			88,473
Others (b)		51,200		140,032		—			—

		546,064		156,006		57,269			145,742
Logistics
Companhia Ferroviária do Nordeste (b)		49,245		45,545		—			—
DOCEPAR S.A. (b)		—		—		—			—
Ferrovia Centro-Atlântica S.A. (g)		—		652,526		—			—
MRS Logística S.A. (c, g)		—		—		—			—
DOCENAVE (b)		—		—		—			—
Sepetiba Tecon S.A. (b)		—		—		—			—
TVV - Terminal de Vila Velha S.A. (b)		—		—		—			—
Companhia Portuária da Baía de Sepetiba (b)		—		—		—			—
Others (b)		—		—		—			—

		49,245		698,071		—			—
Steel
California Steel Industries, Inc - CSI (a, b)		—		—		—			—
CST (c, e, f, g)		—		—		(128,694	)		(134,195	)
DOCEPAR S.A. (b)		—		—		—			—
Rio Doce Limited (a, b)		—		—		—			—
USIMINAS (b, c, f)		—		—		—			—
Others (b)		—		—		—			—

		—		—		(128,694	)		(134,195	)
Aluminum
ALBRAS - Alumínio Brasileiro S.A. (b)		—		—		—			—
ALUNORTE (b)		—		—		44,907			49,896
Itabira Rio Doce (ITACO) (b)		—		—		—			—
Mineração Rio do Norte S.A. (b)		—		—		—			—
Mineração Vera Cruz S.A. (b)		12,346		—		(29,512	)		(29,512	)
ALUVALE - own operations (b)		—		—		—			—
Valesul Alumínio S.A. (b)		—		—		—			—

		12,346		—		15,395			20,384
Others
CELMAR (b, i)		—		223,735		—			—
DOCEPAR S.A. (b)		—		—		—			—
FOSFERTIL (f, g)		—		—		—			—
Florestas Rio Doce S.A. (b)		—		—		—			—
Others (b)		11,797		10,382		—			—

		11,797		234,117		—			—

		620,064		1,088,806		2,868,076			2,171,575

[Additional columns below]

[Continued from above table, first column(s) repeated]


	Result of investment participations

	Equity / Others									Provision for losses

	3Q/03			2Q/03			3Q/02			3Q/03			2Q/03			3Q/02

Iron ore and pellets
Caemi Mineração e Metalurgia S.A. (f, g, j)		11,275			17,526			8,367			—			—			—
KOBRASCO (b)		—			—			—			2,374			17,671			(46,150	)
HISPANOBRÁS (b)		1,836			4,071			4,865			—			—			—
ITABRASCO (b)		1,912			2,922			6,482			—			—			—
NIBRASCO (b)		8,430			(2,559	)		1,927			—			—			—
CVRD Overseas Ltd. (a, b)		15,089			37,009			67,638			—			—			—
Ferteco Mineração S.A. (b, i)		33,359			102,738			44,686			—			—			—
Gulf Industrial Investment Co. - GIIC (a, b)		9,957			10,259			3,982			—			—			—
ITACO/ RDE (a, b)		59,319			(218,050	)		738,420			—			—			—
Minas da Serra Geral S.A. - MSG (b)		2,120			2,910			2,158			—			—			—
Samarco Mineração S.A. (g)		52,412			71,117			(36,783	)		—			—			—
Incorporated companies (d)		—			—			—			—			—			—
Others (b)		9,724			969			44,990			—			—			—

		205,433			28,912			886,732			2,374			17,671			(46,150	)
Manganese and ferroalloys
Rio Doce Manganèse Europe - RDME (a, b)		8,965			(37,055	)		47,671			—			—			—
SIBRA Eletrosiderúrgica Brasileira S.A. (b)		29,851			26,375			46,599			—			—			—
Urucum Mineração S.A. (b)		5,086			6,759			2,753			—			—			—
Others (b)		19,745			36,928			570			(149	)		(2,596	)		—

		63,647			33,007			97,593			(149	)		(2,596	)		—
Non-ferrous
Mineração Serra do Sossego (b, h)		—			—			—			—			—			—
Pará Pigmentos S.A. (b)		(16,960	)		—			—			11,197			27,292			(52,832	)
Ferro-Gusa Carajás (b)		—			—			—			—			—			—
Salobo Metais S.A. (b, h)		—			—			—			—			—			—
Others (b)		69			(100	)		226			—			—			—

		(16,891	)		(100	)		226			11,197			27,292			(52,832	)
Logistics
Companhia Ferroviária do Nordeste (b)		—			—			—			(3,527	)		(3,012	)		(2,609	)
DOCEPAR S.A. (b)		—			—			—			—			—			—
Ferrovia Centro-Atlântica S.A. (g)		(200,902	)		—			—			189,156			(96,225	)		(105,382	)
MRS Logística S.A. (c, g)		—			—			—			22,524			13,898			(33,028	)
DOCENAVE (b)		14,376			21,183			55,473			—			—			—
Sepetiba Tecon S.A. (b)		2,655			(937	)		(17,383	)		—			—			(20,647	)
TVV - Terminal de Vila Velha S.A. (b)		2,786			2,113			3,226			—			—			—
Companhia Portuária da Baía de Sepetiba (b)		—			—			—			—			—			—
Others (b)		—			—			7,062			—			—			—

		(181,085	)		22,359			48,378			208,153			(85,339	)		(161,666	)
Steel
California Steel Industries, Inc - CSI (a, b)		5,112			(101,999	)		232,782			—			—			—
CST (c, e, f, g)		83,106			72,124			(10,555	)		—			—			—
DOCEPAR S.A. (b)		—			—			—			—			8,106			(6,532	)
Rio Doce Limited (a, b)		—			—			—			—			—			—
USIMINAS (b, c, f)		47,361			37,000			(81,900	)		—			—			—
Others (b)		—			—			(400	)		—			—			—

		135,579			7,125			139,927			—			8,106			(6,532	)
Aluminum
ALBRAS - Alumínio Brasileiro S.A. (b)		36,259			125,818			(57,713	)		—			—			(106,614	)
ALUNORTE (b)		15,810			83,871			(154,384	)		—			—			—
Itabira Rio Doce (ITACO) (b)		33,318			20,583			(17,626	)		—			—			—
Mineração Rio do Norte S.A. (b)		38,733			30,092			(2,637	)		—			—			—
Mineração Vera Cruz S.A. (b)		—			—			—			—			—			—
ALUVALE - own operations (b)		3,622			4,951			6,917			—			—			—
Valesul Alumínio S.A. (b)		7,315			1,630			10,925			—			—			—

		135,057			266,945			(214,518	)		—			—			(106,614	)
Others
CELMAR (b, i)		—			—			—			18,233			—			—
DOCEPAR S.A. (b)		(119,655	)		16,280			—			114,544			—			—
FOSFERTIL (f, g)		3,936			6,598			9,696			—			—			—
Florestas Rio Doce S.A. (b)		20,999			(10,977	)		2,475			—			—			—
Others (b)		(630	)		348			(3,035	)		—			—			(2,739	)

		(95,350	)		12,249			9,136			132,777			—			(2,739	)

		246,390			370,497			967,474			354,352			(34,866	)		(376,533	)

[Additional columns below]

[Continued from above table, first column(s) repeated]


	Result of investment participations

	Amortization of goodwill

	3Q/03			2Q/03			3Q/02

Iron ore and pellets
Caemi Mineração e Metalurgia S.A. (f, g, j)		(20,480	)		(12,930	)		(12,195	)
KOBRASCO (b)		—			—			—
HISPANOBRÁS (b)		—			—			—
ITABRASCO (b)		—			—			—
NIBRASCO (b)		—			—			—
CVRD Overseas Ltd. (a, b)		—			—			—
Ferteco Mineração S.A. (b, i)		(26,275	)		(34,656	)		(34,656	)
Gulf Industrial Investment Co. - GIIC (a, b)		—			—			—
ITACO/ RDE (a, b)		—			—			—
Minas da Serra Geral S.A. - MSG (b)		—			—			—
Samarco Mineração S.A. (g)		—			—			—
Incorporated companies (d)		—			—			—
Others (b)		(2,361	)		(2,361	)		(2,361	)

		(49,116	)		(49,947	)		(49,212	)
Manganese and ferroalloys
Rio Doce Manganèse Europe - RDME (a, b)		—			—			—
SIBRA Eletrosiderúrgica Brasileira S.A. (b)		(20,129	)		(20,129	)		(20,128	)
Urucum Mineração S.A. (b)		—			—			—
Others (b)		—			—			—

		(20,129	)		(20,129	)		(20,128	)
Non-ferrous
Mineração Serra do Sossego (b, h)		—			—			—
Pará Pigmentos S.A. (b)		(20,364	)		—			—
Ferro-Gusa Carajás (b)		—			—			—
Salobo Metais S.A. (b, h)		—			—			—
Others (b)		—			—			—

		(20,364	)		—			—
Logistics
Companhia Ferroviária do Nordeste (b)		—			—			—
DOCEPAR S.A. (b)		—			—			—
Ferrovia Centro-Atlântica S.A. (g)		(18,660	)		(114,563	)		(36,887	)
MRS Logística S.A. (c, g)		—			—			(2,595	)
DOCENAVE (b)		—			—			—
Sepetiba Tecon S.A. (b)		—			—			—
TVV - Terminal de Vila Velha S.A. (b)		—			—			—
Companhia Portuária da Baía de Sepetiba (b)		—			—			—
Others (b)		—			—			—

		(18,660	)		(114,563	)		(39,482	)
Steel
California Steel Industries, Inc - CSI (a, b)		—			—			—
CST (c, e, f, g)		—			—			—
DOCEPAR S.A. (b)		—			—			—
Rio Doce Limited (a, b)		—			—			—
USIMINAS (b, c, f)		—			—			—
Others (b)		—			—			—

		—			—			—
Aluminum
ALBRAS - Alumínio Brasileiro S.A. (b)		—			—			—
ALUNORTE (b)		(4,989	)		—			—
Itabira Rio Doce (ITACO) (b)		—			—			—
Mineração Rio do Norte S.A. (b)		—			—			—
Mineração Vera Cruz S.A. (b)		—			—			—
ALUVALE - own operations (b)		—			—			—
Valesul Alumínio S.A. (b)		—			—			—

		(4,989	)		—			—
Others
CELMAR (b, i)		—			—			—
DOCEPAR S.A. (b)		—			—			—
FOSFERTIL (f, g)		—			—			—
Florestas Rio Doce S.A. (b)		—			—			—
Others (b)		—			—			—

		—			—			—

		(113,258	)		(184,639	)		(108,822	)

[Additional columns below]

[Continued from above table, first column(s) repeated]


	Result of investment participations

	Total

	3Q/03			2Q/03			3Q/02			09/30/03			09/30/02

Iron ore and pellets
Caemi Mineração e Metalurgia S.A. (f, g, j)		(9,205	)		4,596			(3,828	)		(8,056	)		(19,187	)
KOBRASCO (b)		2,374			17,671			(46,150	)		29,140			(69,276	)
HISPANOBRÁS (b)		1,836			4,071			4,865			8,192			8,529
ITABRASCO (b)		1,912			2,922			6,482			6,571			10,529
NIBRASCO (b)		8,430			(2,559	)		1,927			7,486			2,598
CVRD Overseas Ltd. (a, b)		15,089			37,009			67,638			81,552			153,712
Ferteco Mineração S.A. (b, i)		7,084			68,082			10,030			125,557			23,083
Gulf Industrial Investment Co. - GIIC (a, b)		9,957			10,259			3,982			26,472			11,559
ITACO/ RDE (a, b)		59,319			(218,050	)		738,420			(298,535	)		1,269,505
Minas da Serra Geral S.A. - MSG (b)		2,120			2,910			2,158			8,826			5,691
Samarco Mineração S.A. (g)		52,412			71,117			(36,783	)		193,256			(17,319	)
Incorporated companies (d)		—			—			—			—			—
Others (b)		7,363			(1,392	)		42,629			9,247			94,867

		158,691			(3,364	)		791,370			189,708			1,474,291
Manganese and ferroalloys
Rio Doce Manganèse Europe - RDME (a, b)		8,965			(37,055	)		47,671			(20,083	)		93,068
SIBRA Eletrosiderúrgica Brasileira S.A. (b)		9,722			6,246			26,471			13,708			42,873
Urucum Mineração S.A. (b)		5,086			6,759			2,753			18,738			14,006
Others (b)		19,596			34,332			570			57,738			(10,810	)

		43,369			10,282			77,465			70,101			139,137
Non-ferrous
Mineração Serra do Sossego (b, h)		—			—			—			—			—
Pará Pigmentos S.A. (b)		(26,127	)		27,292			(52,832	)		25,145			(88,058	)
Ferro-Gusa Carajás (b)		—			—			—			—			—
Salobo Metais S.A. (b, h)		—			—			—			—			—
Others (b)		69			(100	)		226			(35	)		(154	)

		(26,058	)		27,192			(52,606	)		25,110			(88,212	)
Logistics
Companhia Ferroviária do Nordeste (b)		(3,527	)		(3,012	)		(2,609	)		(8,468	)		(7,002	)
DOCEPAR S.A. (b)		—			—			—			—			(50,735	)
Ferrovia Centro-Atlântica S.A. (g)		(30,406	)		(210,788	)		(142,269	)		(283,688	)		(217,287	)
MRS Logística S.A. (c, g)		22,524			13,898			(35,623	)		42,494			(82,424	)
DOCENAVE (b)		14,376			21,183			55,473			33,838			107,014
Sepetiba Tecon S.A. (b)		2,655			(937	)		(38,030	)		(716	)		(38,030	)
TVV - Terminal de Vila Velha S.A. (b)		2,786			2,113			3,226			6,915			3,294
Companhia Portuária da Baía de Sepetiba (b)		—			—			—			—			—
Others (b)		—			—			7,062			—			(1,035	)

		8,408			(177,543	)		(152,770	)		(209,625	)		(286,205	)
Steel
California Steel Industries, Inc - CSI (a, b)		5,112			(101,999	)		232,782			(125,536	)		352,161
CST (c, e, f, g)		83,106			72,124			(10,555	)		219,871			(42,907	)
DOCEPAR S.A. (b)		—			8,106			(6,532	)		—			(19,494	)
Rio Doce Limited (a, b)		—			—			—			—			—
USIMINAS (b, c, f)		47,361			37,000			(81,900	)		121,361			(107,453	)
Others (b)		—			—			(400	)		—			(400	)

		135,579			15,231			133,395			215,696			181,907
Aluminum
ALBRAS - Alumínio Brasileiro S.A. (b)		36,259			125,818			(164,327	)		275,897			(220,475	)
ALUNORTE (b)		10,821			83,871			(154,384	)		152,830			(213,782	)
Itabira Rio Doce (ITACO) (b)		33,318			20,583			(17,626	)		47,883			(4,210	)
Mineração Rio do Norte S.A. (b)		38,733			30,092			(2,637	)		92,624			10,256
Mineração Vera Cruz S.A. (b)		—			—			—			—			—
ALUVALE - own operations (b)		3,622			4,951			6,917			25,012			23,042
Valesul Alumínio S.A. (b)		7,315			1,630			10,925			23,751			22,443

		130,068			266,945			(321,132	)		617,997			(382,726	)
Others
CELMAR (b, i)		18,233			—			—			18,233			—
DOCEPAR S.A. (b)		(5,111	)		16,280			—			11,169			—
FOSFERTIL (f, g)		3,936			6,598			9,696			21,505			15,025
Florestas Rio Doce S.A. (b)		20,999			(10,977	)		2,475			14,258			7,258
Others (b)		(630	)		348			(5,774	)		(596	)		(19,769	)

		37,427			12,249			6,397			64,569			2,514

		487,484			150,992			482,119			973,556			1,040,706

[Additional columns below]

[Continued from above table, first column(s) repeated]


							Market
	Dividends received						Value

	3Q/03		2Q/03		3Q/02		09/30/03

Iron ore and pellets
Caemi Mineração e Metalurgia S.A. (f, g, j)		—		—		—		1,905,105
KOBRASCO (b)		—		—		—		—
HISPANOBRÁS (b)		1,240		1,140		906		—
ITABRASCO (b)		—		2,815		—		—
NIBRASCO (b)		—		—		—		—
CVRD Overseas Ltd. (a, b)		—		—		—		—
Ferteco Mineração S.A. (b, i)		—		—		—		—
Gulf Industrial Investment Co. - GIIC (a, b)		—		—		—		—
ITACO/ RDE (a, b)		—		—		—		—
Minas da Serra Geral S.A. - MSG (b)		—		2,868		2,454		—
Samarco Mineração S.A. (g)		43,753		64,166		—		—
Incorporated companies (d)		—		—		—		—
Others (b)		305		1,603		—		—

		45,298		72,592		3,360
Manganese and ferroalloys
Rio Doce Manganèse Europe - RDME (a, b)		—		—		—		—
SIBRA Eletrosiderúrgica Brasileira S.A. (b)		—		—		—		—
Urucum Mineração S.A. (b)		—		14,493		—		—
Others (b)		—		1,543		—		—

		—		16,036		—
Non-ferrous
Mineração Serra do Sossego (b, h)		—		—		—		—
Pará Pigmentos S.A. (b)		—		—		—		—
Ferro-Gusa Carajás (b)		—		—		—		—
Salobo Metais S.A. (b, h)		—		—		—		—
Others (b)		—		—		—		—

		—		—		—
Logistics
Companhia Ferroviária do Nordeste (b)		—		—		—		—
DOCEPAR S.A. (b)		—		—		—		—
Ferrovia Centro-Atlântica S.A. (g)		—		—		—		—
MRS Logística S.A. (c, g)		—		—		—		—
DOCENAVE (b)		60,550		26,420		—		—
Sepetiba Tecon S.A. (b)		—		—		—		—
TVV - Terminal de Vila Velha S.A. (b)		2,838		—		—		—
Companhia Portuária da Baía de Sepetiba (b)		—		—		—		—
Others (b)		—		—		—		—

		63,388		26,420		—
Steel
California Steel Industries, Inc - CSI (a, b)		—		—		—		—
CST (c, e, f, g)		87,793		—		—		863,412
DOCEPAR S.A. (b)		—		—		—		—
Rio Doce Limited (a, b)		—		—		—		—
USIMINAS (b, c, f)		9,627		—		—		374,256
Others (b)		—		—		—		—

		97,420		—		—
Aluminum
ALBRAS - Alumínio Brasileiro S.A. (b)		—		—		—		—
ALUNORTE (b)		—		—		—		—
Itabira Rio Doce (ITACO) (b)		—		—		—		—
Mineração Rio do Norte S.A. (b)		—		—		—		—
Mineração Vera Cruz S.A. (b)		—		—		—		—
ALUVALE - own operations (b)		—		26,327		22,042		—
Valesul Alumínio S.A. (b)		—		—		—		—

		—		26,327		22,042
Others
CELMAR (b, i)		—		—		—		—
DOCEPAR S.A. (b)		—		—		—		—
FOSFERTIL (f, g)		6,112		5,644		5,063		205,161
Florestas Rio Doce S.A. (b)		—		38,241		—		—
Others (b)		—		—		—		—

		6,112		43,885		5,063

		212,218		185,260		30,465

(a)		Equity in companies located abroad is converted into local currency at rates in effect on the quarterly information date. The equity method adjustment comprises the difference due to exchange rate variations as well as participation in results;

(b)		Companies whose quarterly information were not reviewed by independent accountants;

(c)		CVRD´s interest in MRS Logística S.A. is held through Caemi Mineração e Metalurgia S.A.;

(d)		Incorporated companies (Socoimex and Samitri) - amortization of goodwill recorded on the cost of products sold of the Parent Company;

(e)		On 04/24/03, CVRD acquired from Acesita S.A. 1,765,470 preferred shares and 869,046 common shares of Companhia Siderúrgica de Tubarão (CST), representing 5.17% of the total capital. After conclusion of the transaction, CVRD holds 24.93% of the common shares and 29.96% of the preferred shares of CST, totaling 28.02% of its total capital;

(f)		Investments in companies that were listed on stock exchanges as of 09/30/03. The market value of these investments does not necessarily reflect the value that could be realized from selling a representative group of shares;

(g)		Companies whose quarterly information were reviewed by independent accountants;

(h)		Companies in pre-operating phase;

(i)		Companies incorporated on 08/29/03; and

(j)		Acquisition on 09/02/03 from Mitsui & Co., Ltd. of 659,375,000 common shares and 1,040,671,032 preferred shares (43.37% of the total capital of Caemi), totaling 100% of the common shares and 40.06% of the preferred shares of Caemi (60.23% of the total capital).

CVRD

Incorporation of Ferteco

At the Extraordinary General Meeting held on 08/29/03, incorporation of Ferteco Mineração S.A. (Ferteco) was approved.

Incorporation of the assets of Ferteco, involving two iron ore mines (Córrego do Feijão and Fábrica) and a pelletizing plant (Fábrica) located in the Iron Ore Quadrangle in the state of Minas Gerais, added R$ 1,336,503 (one billion, three hundred thirty-six million, five hundred and three thousand reais) in assets to the Company. The operation of these mines and pelletizing plant will boost the installed capacity of the Company by about 11 million tons/year of iron ore and 4 million tons/year of pellets.

Balance Sheet - 09/30/03


			CVRD 09/30/03									CVRD after
			without Ferteco		08/31/03 Ferteco		Combinated		Eliminations			incorporation

Assets
Current assets
	Cash and cash equivalents			872,847		91,946		964,793		—			964,793
	Accounts receivable from customers			2,554,091		382,219		2,936,310		40,523			2,895,787
	Iventories			473,881		76,179		550,060		—			550,060
	Others			1,142,642		131,159		1,273,801		67,803			1,205,998

				5,043,461		681,503		5,724,964		108,326			5,616,638
Long-term receivables				2,608,359		213,141		2,821,500		175,157			2,646,343
Permanent assets
	Investments
		Ferteco - investment		850,309		—		850,309		850,309			—
		Ferteco - goodwill		476,159		—		476,159		(242,960	)		719,119
		Others		11,193,015		222,015		11,415,030		—			11,415,030

				12,519,483		222,015		12,741,498		607,349			12,134,149
	Property, plant and equipment			9,822,812		219,844		10,042,656		—			10,042,656

				22,342,295		441,859		22,784,154		607,349			22,176,805

				29,994,115		1,336,503		31,330,618		890,832			30,439,786

Liabilities and stockholders’ equity
Current liabilities
	Short-term debt			2,617,045		48,443		2,665,488		—			2,665,488
	Payable to suppliers and contractors			3,263,510		214,142		3,477,652		40,523			3,437,129
	Others			287,935		802		288,737		—			288,737

				6,168,490		263,387		6,431,877		40,523			6,391,354
Long-term liabilities				9,292,319		222,807		9,515,126		—			9,515,126
Stockholders’ equity				14,533,306		850,309		15,383,615		850,309			14,533,306

				29,994,115		1,336,503		31,330,618		890,832			30,439,786

CVRD

Statement of Income - 09/30/03


	CVRD 09/30/03			08/31/03									CVRD after
	without Ferteco			Ferteco			Combinated			Eliminations			incorporation

Net operating revenues		7,215,406			710,166			7,925,572			(140,098	)		7,785,474
Cost of products and services		(3,809,974	)		(433,903	)		(4,243,877	)		140,098			(4,103,779	)

Gross profit		3,405,432			276,263			3,681,695			—			3,681,695
Gross margin		47.2	%		38.9	%		46.5	%		0.0	%		47.3	%
Operating expenses		(819,118	)		(58,011	)		(877,129	)		—			(877,129	)

Operating profit before financial result and result of equity investments		2,586,314			218,252			2,804,566			—			2,804,566
Result of equity investments		973,556			79,458			1,053,014			(243,663	)		809,351
Financial result		655,014			7,638			662,652			—			662,652

Income before income tax and social contribution		4,214,884			305,348			4,520,232			(243,663	)		4,276,569
Income tax and social contribution		(497,561	)		(61,685	)		(559,246	)		—			(559,246	)

Net income for the period		3,717,323			243,663			3,960,986			(243,663	)		3,717,323

CVRD

6.9- Property, Plant and Equipment

(a) By business area:


		09/30/03							06/30/03

				Accumulated							Accumulated
		Cost		depreciation			Net		Cost		depreciation			Net

Ferrous - Northern System
	Mining		1,872,419		(793,779	)		1,078,640		1,840,748		(785,256	)		1,055,492
	Railroads		2,772,881		(1,104,191	)		1,668,690		2,740,011		(1,085,091	)		1,654,920
	Ports		578,135		(253,933	)		324,202		575,295		(250,476	)		324,819
Construction in progress			672,306		—			672,306		527,591		—			527,591

			5,895,741		(2,151,903	)		3,743,838		5,683,645		(2,120,823	)		3,562,822

Ferrous - Southern System
	Mining		3,032,172		(1,680,903	)		1,351,269		2,562,557		(1,490,947	)		1,071,610
	Railroads		3,239,068		(1,825,930	)		1,413,138		3,127,499		(1,805,504	)		1,321,995
	Ports		586,283		(440,674	)		145,609		587,251		(439,127	)		148,124
Construction in progress			651,240		—			651,240		540,840		—			540,840

			7,508,763		(3,947,507	)		3,561,256		6,818,147		(3,735,578	)		3,082,569

Pelletizing
	Southern System		740,996		(541,636	)		199,360		621,970		(451,184	)		170,786
	Northern System		521,025		(17,355	)		503,670		517,236		(13,211	)		504,025
Construction in progress			144,006		—			144,006		156,174		—			156,174

			1,406,027		(558,991	)		847,036		1,295,380		(464,395	)		830,985

Non-Ferrous
	Potash		142,474		(55,318	)		87,156		132,802		(52,444	)		80,358
	Gold		75,617		(72,034	)		3,583		426,246		(395,023	)		31,223
	Research and projects		221,764		(182,001	)		39,763		214,303		(179,416	)		34,887
Construction in progress			183,179		—			183,179		134,209		—			134,209

			623,034		(309,353	)		313,681		907,560		(626,883	)		280,677

Logistics			1,178,607		(563,623	)		614,984		1,121,655		(556,679	)		564,976
Construction in progress			37,572		—			37,572		32,750		—			32,750

			1,216,179		(563,623	)		652,556		1,154,405		(556,679	)		597,726

Energy			370,276		(28,668	)		341,608		370,226		(25,618	)		344,608
Construction in progress			413,867		—			413,867		369,360		—			369,360

			784,143		(28,668	)		755,475		739,586		(25,618	)		713,968

Corporate			166,010		(71,990	)		94,020		155,169		(59,038	)		96,131
Construction in progress			74,794		—			74,794		51,981		—			51,981

			240,804		(71,990	)		168,814		207,150		(59,038	)		148,112

Total			17,674,691		(7,632,035	)		10,042,656		16,805,873		(7,589,014	)		9,216,859

(b) By classification of asset:


				09/30/03							06/30/03
	Average
	deprecia-					Accumulated							Accumulated
	tion rates			Cost		depreciation			Net		Cost		depreciation			Net

Buildings		3	%		1,634,785		(713,679	)		921,106		1,596,947		(704,535	)		892,412
Installations		2% - 5	%		5,063,832		(2,653,100	)		2,410,732		5,071,956		(2,701,523	)		2,370,433
Equipment		5% - 20	%		1,283,721		(697,164	)		586,557		1,039,340		(586,531	)		452,809
Railroads		2% - 20	%		5,531,275		(2,783,419	)		2,747,856		5,341,142		(2,746,940	)		2,594,202
Mineral rights		—			433,909		(181,744	)		252,165		433,909		(181,744	)		252,165
Others		—			1,550,205		(602,929	)		947,276		1,509,674		(667,741	)		841,933

					15,497,727		(7,632,035	)		7,865,692		14,992,968		(7,589,014	)		7,403,954
Construction in progress		—			2,176,964		—			2,176,964		1,812,905		—			1,812,905

Total					17,674,691		(7,632,035	)		10,042,656		16,805,873		(7,589,014	)		9,216,859

Mineral reserve depletion is calculated as a function of the volume of ore extracted in relation to the proven and probable reserves.


20	CVRD

Depreciation, amortization and depletion have been allocated as follows:


	Quarter						Accumulated

	3Q/03		2Q/03		3Q/02		09/30/03		09/30/02

Cost of production and services		143,291		130,582		143,621		399,421		418,765
Administrative expenses		6,797		9,865		6,092		25,790		16,922

		150,088		140,447		149,713		425,211		435,687

6.10- Loans and Financing

Short-term

Refers to export financing in the amount of R$ 105,807 on 09/30/03 and R$ 102,920 on 06/30/03, with an average interest rate of
3.9645% p.a. on 09/30/03 and 06/30/03.

Long-term


			Current liabilities				Long-term liabilities

			09/30/03		06/30/03		09/30/03		06/30/03

Foreign operations
	Loans and financing in:
		U.S. dollars		865,591		753,902		2,633,794		2,234,043
		Yen		84,218		77,776		7,532		6,887
		Other currencies		8,772		874		61,914		633
	Notes in U.S. dollars			1,461,700		1,436,000		—		—
	Accrued charges			42,286		44,375		—		—

				2,462,567		2,312,927		2,703,240		2,241,563

Local operations
	Indexed by TJLP, TR and IGP-M			17,393		17,160		48,875		50,358
	Basket of currencies			35,180		34,112		20,522		28,426
	Loans in U.S. dollars			36,127		23,003		225,360		234,433
	Non-convertible debentures			—		—		8,900		8,795
	Accrued charges			8,414		7,025		—		—

				97,114		81,300		303,657		322,012

				2,559,681		2,394,227		3,006,897		2,563,575

(a)		Foreign currency loans and financing were converted into reais at exchange rates effective on the quarterly information date, with US$ 1.00 = R$ 2.9234 on 09/30/03 (R$ 2.8720 on 06/30/03) and ¥ 1.00 = R$ 0.026234 on 09/30/03 (R$ 0.023989 on 06/30/03);

(b)		Of the total loans and financing, R$ 659,638 are guaranteed by the federal government (with full counter-guarantees), and R$ 585,497 have real guarantees;

(c)		Amortization of principal and finance charges incurred on long-term loans and financing obtained abroad and domestically mature as follows as of 09/30/03:


2004	210,288	7	%
2005	590,032	20	%
2006	995,078	33	%
2007	308,561	10	%
2008 onward	902,938	30	%

	3,006,897	100	%


CVRD						21

(d)

Long-term foreign and domestic loans and financing were subject to annual interest rates on 09/30/03 as follows:


Up to 3%	2,193,914	39	%
3.1 to 5%	1,165,191	21	%
5.1 to 7%	321,756	6	%
7.1 to 9%	312,469	6	%
9.1 to 11%	1,478,089	26	%
Over 11%	95,159	2	%

	5,566,578	100	%

(e)

The estimated market values of long-term loans and financing calculated to present value based on available interest rates as of 09/30/03 are close to their book values.

6.11- Contingent Liabilities

At the quarterly information dates the contingent liabilities of the Company were:

(a)

Provisions for contingencies and judicial deposits (booked under long-term liabilities and long-term assets, respectively), considered by management and its legal counsel as sufficient to cover possible losses from any type of lawsuit, were as follows:


	Judicial deposits					Provisions for contingencies

	09/30/03			06/30/03		09/30/03		06/30/03

Tax contingencies		649,913	(*)		903,636		444,821		721,506
Labor and social security claims		153,299			137,574		439,899		398,827
Civil claims		132,986			126,219		396,401		317,631
Others		5,372			5,393		15,465		3,816

Total		941,570			1,172,822		1,296,586		1,441,780

(*)

Refers, mainly to the judicial deposit for the legal action against the limitation to 30% of the tax losses and the broadening of the calculation base for PIS / COFINS (social contributions), consequently, the provision was estinguished in the third quarter.

		The Company is party to labor, civil, tax and other suits and has been contesting these matters both administratively and in the courts. When necessary, these are backed by judicial deposits. Provisions for eventual losses are estimated and restated monetarily by management upon the advice of the legal department and outside counsel.

		Tax contingencies relate principally to a suit claiming unconstitutionality of the change in the calculation basis of PIS and Cofins social contributions introduced by Law 9,718/98, and to CPMF (tax on bank transactions).

		Labor-related actions principally comprise employee claims in connection with disputes about the amount of indemnities paid upon dismissal and outstanding one-third extra holiday pay.

		Civil actions principally relate to claims made against the Company by contractors in connection with losses alleged to have been incurred as a result of various past government economic plans.


22		CVRD

(b)

Guarantees given to jointly controlled companies (normally in proportion to the Company’s percentage of participation) are as follows:


	09/30/03		06/30/03

ALBRAS - Alumínio Brasileiro S.A.		851,257		893,140
Sepetiba Tecon S.A.		66,416		65,269
Samarco Mineração S.A.		27,632		33,981

		945,305		992,390

The breakdown of guarantees by currency is:


	09/30/03		06/30/03

U.S. Dollar		807,072		850,637
Real		138,233		141,753

		945,305		992,390

Amount of

Denominated

Counter

Affiliate or Joint Venture

guarantee

currency

Purpose

Final maturity

guarantees

ALBRAS

727,756

Debt guarantee

2007

None

123,501

Debt guarantee

2010

None

SEPETIBA TECON

51,685

Debt guarantee

2013

None

14,731

Debt guarantee

2012

None

SAMARCO

27,632

Debt guarantee

2020

None

			The Company expects no losses to arise as a result of the above guarantees. No charges were made for extending these guarantees to Sepetiba Tecon.

	(c)		Upon privatization of the Company in 1997, the Brazilian government stipulated the issuance of non-convertible debentures (Debentures) to the stockholders of record, including the federal government. The maturity dates of these Debentures were established to guarantee that pre-privatization stockholders, including the federal government, would share any future benefits from mineral resources held by the Company and its subsidiary and affiliated companies that were not evaluated at the time of setting the minimum price of CVRD shares at the privatization auction.

			A total of 388,559,056 Debentures were issued at a par value of R$ 0.01 (one centavo), whose value is to be restated in accordance with the variation in the General Market Price Index (IGP-M), as set forth in the Issue Deed.

			On October 4, 2002, the Comissão de Valores Mobiliários - CVM (Brazilian Securities Commission) approved the Company’s registration request, filed on June 28, 2002, for public Debentures trading. As of October 28, 2002, the Debentures can be traded on the secondary market.

6.12- Environmental and Site Reclamation and Restoration Costs

Expenditures relating to ongoing compliance with environmental regulations are charged to production costs or capitalized as incurred. The Company manages its environmental policies according to the specifications of ISO 14,001 and maintains ongoing programs to minimize the environmental impact of its mining operations as well as to reduce the costs that will be incurred upon termination of activities at each mine. On 09/30/03, the provision for environmental liabilities amounted to R$ 45,058 (R$ 47,837 on 06/30/03), which was accounted for in “Others” in long-term liabilities.

6.13- Paid-up Capital

The Company’s capital was raised to R$ 6.3 billion through capitalization of part of the expansion reserve in the amount of R$ 1.3 billion. This capital corresponds to 388,559,056 book entry shares, of which 249,983,143 are common shares and 138,575,913 are preferred class A shares, the latter including one special preferred share (“Golden Share”), all with no par value.

Preferred shares have the same rights as common shares, except for the right to elect the members of the Board of Directors. They have priority to a minimum annual dividend of 6% on the portion of capital represented by this class of share or 3% of the book value of the share, if greater.

The special “Golden Share” created during the privatization in 1997 belongs to the Brazilian Government. This share gives it the right to a permanent veto of changes in the Company’s name, headquarters location, nature as a mining enterprise, continuous operation of the integrated mining, transportation and loading systems and other matters determined in the Bylaws.


CVRD		23

6.14- Treasury Stock

The Board of Directors, under the terms of subparagraph XV of Article 13 of the Bylaws and based on Article 30 of Law 6,404/76 and CVM Instructions 10 of 02/14/80 and 268 of 11/13/97, approved the acquisition by the Company of its own shares to be held in treasury for later sale or cancellation.

As of September 30, 2003, 4,715,170 common shares and 4,183 preferred shares were purchased, which are held in treasury in the amount of R$ 131,318. The 4,715,170 common shares guarantees a loan given to the subsidiary Alunorte.


Shares
											Average
Class	Quantity				Unit acquisition cost						quoted market price

	09/30/03		06/30/03		Average		Low		High		09/30/03		06/30/03

Preferred		4,183		4,235		51.41		14.02		52.40		105.70		78.71
Common		4,715,170		4,715,170		27.80		20.07		52.09		118.23		84.85

		4,719,353		4,719,405

6.15- Financial Result


	Quarter

	3Q/03									2Q/03								3Q/02

				Monetary and									Monetary and								Monetary and
				exchange rate									exchange rate								exchange rate
	Financial			variation on						Financial			variation on					Financial			variation on
	expenses			liabilities			Total			expenses			liabilities		Total			expenses			liabilities			Total

Foreign debt		(54,710	)		(68,114	)		(122,824	)		(50,432	)		677,402		626,970			(61,199	)		(1,578,186	)		(1,639,385	)
Local debt		(7,983	)		(9,093	)		(17,076	)		(7,793	)		67,575		59,782			(21,765	)		(537,705	)		(559,470	)
Related parties		(44,721	)		(47,612	)		(92,333	)		(42,179	)		315,643		273,464			(39,641	)		(579,591	)		(619,232	)

		(107,414	)		(124,819	)		(232,233	)		(100,404	)		1,060,620		960,216			(122,605	)		(2,695,482	)		(2,818,087	)
Labor, tax and civil contingencies		(28,181	)		(8,282	)		(36,463	)		(17,187	)		483		(16,704	)		(35,442	)		(45,059	)		(80,501	)
Derivatives, net of gain/losses (interest and currencies)		52,006			(45,874	)		6,132			(20,634	)		33,204		12,570			(159,648	)		(31,961	)		(191,609	)
CPMF / COFINS		(16,580	)		—			(16,580	)		(16,293	)		—		(16,293	)		(60,246	)		—			(60,246	)
Others		(44,909	)		(152,919	)		(197,828	)		(8,982	)		238,354		229,372			(163,940	)		(506,810	)		(670,750	)

		(145,078	)		(331,894	)		(476,972	)		(163,500	)		1,332,661		1,169,161			(541,881	)		(3,279,312	)		(3,821,193	)


					Monetary and									Monetary and									Monetary and
					exchange rate									exchange rate									exchange rate
		Financial			variation on						Financial			variation on						Financial			variation on
		income			assets			Total			income			assets			Total			income			assets			Total

Related parties			20,056			37,645			57,701			28,047			(341,816	)		(313,769	)		27,990			985,150			1,013,140
Marketable securities			34,054			100,754			134,808			26,024			(63,920	)		(37,896	)		62			43,400			43,462
	Others		5,834			5,604			11,438			7,096			(41,448	)		(34,352	)		3,687			148,047			151,734

			59,944			144,003			203,947			61,167			(447,184	)		(386,017	)		31,739			1,176,597			1,208,336

Financial income (expenses), net			(85,134	)		(187,891	)		(273,025	)		(102,333	)		885,477			783,144			(510,142	)		(2,102,715	)		(2,612,857	)


24			CVRD


	Accumulated

	09/30/03									09/30/02

				Monetary and									Monetary and
				exchange rate									exchange rate
	Financial			variation on						Financial			variation on
	expenses			liabilities			Total			expenses			liabilities			Total

Foreign debt		(168,067	)		856,129			688,062			(152,197	)		(2,247,244	)		(2,399,441	)
Local debt		(26,796	)		93,640			66,844			(60,970	)		(894,767	)		(955,737	)
Related parties		(130,635	)		393,219			262,584			(111,766	)		(845,221	)		(956,987	)

		(325,498	)		1,342,988			1,017,490			(324,933	)		(3,987,232	)		(4,312,165	)
Labor, tax and civil contingencies		(66,820	)		(52,392	)		(119,212	)		(131,621	)		(68,738	)		(200,359	)
Derivatives, net of gain/losses (interest and currencies)		(10,801	)		—			(10,801	)		(168,828	)		(47,870	)		(216,698	)
CPMF / COFINS		(45,965	)		—			(45,965	)		(65,013	)		—			(65,013	)
Others		(44,140	)		118,549			74,409			(196,779	)		(771,889	)		(968,668	)

		(493,224	)		1,409,145			915,921			(887,174	)		(4,875,729	)		(5,762,903	)


				Monetary and									Monetary and
				exchange rate									exchange rate
	Financial			variation on						Financial			variation on
	income			assets			Total			income			assets			Total

Related parties		88,364			(428,523	)		(340,159	)		71,342			1,479,286			1,550,628
Marketable securities		61,661			51,114			112,775			62,841			74,811			137,652
Others		20,704			(54,227	)		(33,523	)		25,020			225,900			250,920

		170,729			(431,636	)		(260,907	)		159,203			1,779,997			1,939,200

Financial income (expenses), net		(322,495	)		977,509(*	)		655,014			(727,971	)		(3,095,732	)		(3,823,703	)

(*) See item 1.2.5 - Net financial result.

Debt Indices

3Q/03

2Q/03

3Q/02

Current liabilities

Current portion of long-term debt - unrelated parties

2,559,681

2,394,227

1,068,199

Short-term debt

105,807

102,920

1,066,196

Related parties

1,011,631

1,085,334

1,100,963

3,677,119

3,582,481

3,235,358

Long-term liabilities

Long-term debt - unrelated parties

3,006,897

2,563,575

5,560,230

Related parties

3,976,621

2,982,995

3,698,208

6,983,518

5,546,570

9,258,438

Gross Debt

10,660,637

9,129,051

12,493,796

Gross interest

107,414

100,404

122,605

EBITDA

1,506,157

983,095

1,123,729

Stockholders’ equity

14,533,306

14,187,982

11,239,843

EBITDA / Gross interest

14.02

9.79

9.17

Gross Debt / EBITDA (anualized)

1.77

2.32

2.78

Debt / Equity capitalization

6.16- Financial Instruments - Derivatives

The main market risks the Company faces are related to interest rates, exchange rates and commodities prices. CVRD has a policy of managing risks through the use of derivatives instruments.

The Company’s risk management follows policies and guidelines reviewed and approved by the Board of Directors and Executive Board. These policies and guidelines prohibit speculative trading and short selling and require diversification of transactions and counterparts. The policy of the Company is to settle all contracts financially without physical delivery of the products. The credit limits and creditworthiness of counterparts are also reviewed periodically and are defined according to the rules approved by Company’s management. The results of hedging are recognized monthly in the CVRD result.


	CVRD	25

Interest Rate Risk

Interest rate risk derives from floating-rate debt, mainly from trade finance operations. The portion of floating-rate debt denominated in foreign currency is mainly subject to fluctuations in the LIBOR - London Interbank Offered Rate. The portion of floating-rate debt expressed in reais refers basically to the Brazilian long-term interest rate (TJLP), established by the Brazilian Central Bank. Since May 1998, CVRD has been using derivatives to limit its exposure to fluctuations in the LIBOR.

The interest rate derivatives portfolio consists mainly of options trades aiming to cap exposure to interest rate fluctuations, establishing upper and lower limits. Some operations are subject to knock-out provisions which, if triggered, eliminate the protection provided by the cap.

The table below provides information regarding the interest rate derivatives portfolio for 09/30/03 and 09/30/02.


	09/30/03									09/30/02

						Unrealized gain									Unrealized gain
	Notional value					(loss) (in			Final	Notional value					(loss) (in
Type	(in US$ million)		Rate range			R$ thousand)			maturity	(in US$ million)		Rate range			R$ thousand)

Cap		500		5,7 - 11,0	%		44		May-07		1,200		5,7 - 11,0	%		1,737
Floor		500		5,7 - 6,0	%		(57,173	)	Nov-06		850		5,7 - 6,3	%		(80,656	)
Swap		459		5,8 - 6,7	%		(120,635	)	Oct-07		475		5,8 - 6,7	%		(175,851	)

Total							(177,764	)								(254,770	)

Exchange Rate Risk

Exchange rate risk arises from foreign currency debts. On the other hand, a substantial part of the Company’s revenues are denominated or indexed in U.S. dollars, while the majority of costs are in reais. This provides a natural hedge against possible devaluation of Brazilian currency. Events of this nature have an immediate negative impact on foreign currency debt, offset by the positive effect on future cash flows.

The Company adopts a strategy of monitoring market fluctuations and, if necessary, carrying out derivatives operations to cover risks related to these variations.

The portion of debt denominated in euros and Japanese yen (main components of basket of currencies) is protected by derivatives to cover risks of exchange rate movements of these currencies.

The table below shows the exchange rate derivatives portfolio for 09/30/03 and 09/30/02. These operations are forwards and range forwards which were structured to ensure the purchase price of the following currencies:

09/30/03

09/30/02

Unrealized

Notional value

gain (loss) (in

Final

Notional value

loss (in

Type

(in million)

Rate range

R$ thousand)

maturity

(in million)

Rate range

R$ thousand)

Yen purchased

3.462

¥ 79 - 86 per US$

5,057

Apr-05

3.470

¥ 79 - 91 per US$

3,963

Euros purchased

€

€ 1,11 - 1,23 per US$

996

Dec-11

€

€ 1,18 - 1,23 per US$

5,465

Euros sold

€

—

(49

)

Nov-03

€

€ 0,98 - 0,99 per US$

134

Total

6,004

9,562

Commodities Price Risk

The prices of iron ore, the Company’s main product, are set in annual negotiations between producers and consumers and are notably stable over time. The Company does not enter into derivatives operations to hedge iron ore price exposure.

The Company uses hedge instruments to manage its exposure to changes in the price of gold. These derivatives operations allow establishment of a minimum profit level for future output. The Company actively manages its open positions, with the results reported monthly to senior management to allow adjustment of targets and strategies in response to market conditions.


26	CVRD

The following table shows the gold derivatives portfolio of the Company on 09/30/03 and 09/30/02:


	09/30/03								09/30/02

					Unrealized gain								Unrealized gain
			Price range		(loss) (in			Final			Price range		(loss) (in
Type	Quantity (oz)		(US$/oz)		R$ thousand)			maturity	Quantity (oz)		(US$/oz)		R$ thousand)

Puts purchased		398,000		270 - 385		6,075		Dec-07		471,000		270 - 355		27,534
Calls sold		473,000		317 - 440		(70,141	)	Dec-07		674,500		316 - 407		(43,192	)
Hybrid instruments		20,000		—		(2,625	)	Nov-06		20,000		—		125

Total						(66,691	)							(15,533	)


	Net loss

	3Q/03

	Interest rates
	(libor)			Currencies			Gold			Total

Gains and losses unrealized on 06/30/03		187,216			2,236			31,594			221,046
Financial settlement		(11,867	)		307			(13,745	)		(25,305	)
Financial expenses, net		(42,822	)		(9,184	)		40,971			(11,035	)

		(54,689	)		(8,877	)		27,226			(36,340	)
Monetary variations, net		45,237			637			7,871			53,745

Gains and losses unrealized on 09/30/03		177,764			(6,004	)		66,691			238,451


	Net loss

	2Q/03

	Interest rates
	(libor)			Currencies			Gold			Total

Gains and losses unrealized on 03/31/03		230,264			3,138			33,374			266,776
Financial settlement		(30,360	)		(1,020	)		(1,641	)		(33,021	)
Financial expenses, net		20,078			556			5,512			26,146

		(10,282	)		(464	)		3,871			(6,875	)
Monetary variations, net		(32,766	)		(438	)		(5,651	)		(38,855	)

Gains unrealized on 06/30/03		187,216			2,236			31,594			221,046


	Net loss

	3Q/02

	Interest rates
	(libor)			Currencies			Gold		Total

Gains and losses unrealized on 06/30/02		79,279			5,274			9,669		94,222
Financial settlement		(30,198	)		(756	)		1,563		(29,391	)
Financial expenses, net		175,638			(15,990	)		759		160,407

		145,440			(16,746	)		2,322		131,016
Monetary variations, net		30,051			1,910			3,542		35,503

Gains and losses unrealized on 09/30/02		254,770			(9,562	)		15,533		260,741


	CVRD	27

6.17- Exchange Rate Exposure

The exchange rate exposure is predominantly in U.S. dollars, as follows:

In millions of reais

Subsidiaries and

Parent Company

Affiliated Companies (*)

09/30/03

06/30/03

09/30/03

06/30/03

Assets

Current

Cash and cash equivalents

622

411

214

329

Others

2,839

1,789

1,085

1,101

3,461

2,200

1,299

1,430

Long-term receivables

555

614

Investments

2,766

3,817

Total

6,782

6,631

1,376

1,491

Liabilities

Current

Short-term loans and financing

2,643

2,477

1,372

1,279

Others

851

978

465

529

3,494

3,455

1,837

1,808

Long-term liabilities

Loans and financing

2,950

2,505

1,874

1,776

Others

3,697

2,715

458

459

6,647

5,220

2,332

2,235

Total

10,141

8,675

4,169

4,043

Liabilities - R$

(3,359

)

(2,044

)

(2,793

)

(2,552

)

Liabilities - US$

(1,149

)

(712

)

(955

)

(889

)

( * ) Proportional to the percentage of participation

6.18- Administrative and Other Operating Expenses


	Quarter						Accumulated

	3Q/03		2Q/03		3Q/02		09/30/03		09/30/02

Administrative
Personnel		35,270		34,548		34,814		101,657		93,017
Technical consulting		31,127		23,897		20,298		73,467		85,175
Advertising and publicity		9,376		7,461		6,872		25,843		21,987
Depreciation		6,797		9,865		6,092		25,790		16,922
Travel expenses		5,862		4,042		4,436		14,829		12,376
Rents and taxes		4,935		6,110		4,978		17,947		14,509
Others		3,730		10,654		13,676		22,899		32,212

		97,097		96,577		91,166		282,432		276,198


	Quarter								Accumulated

	3Q/03			2Q/03		3Q/02			09/30/03			09/30/02

Other Operating Expenses
Provisions for contingencies		27,130			47,063		62,077			101,334			90,242
Provision for loss on ICMS credits		56,000			—		(2,702	)		84,000			17,298
Provision for profit sharing		5,000			27,000		48,000			72,000			58,000
Operating expenses - UPSL		—			35,597		—			35,597			—
Sale of Fazenda Brasileiro		(62,993	)		—		—			(62,993	)		—
Others		(16,503	)		21,045		22,808			15,265			78,825

		8,634			130,705		130,183			245,203			244,365


28	CVRD

6.19- Subsequent Events

CVRD Dividend Payment

On 10/15/03 the Board of Directors approved the second installment of the minimum dividend payment to shareholders, as proposed by the Company’s Executive Board on January 30, 2003. The proposal was based on the CVRD Dividend Policy and established the minimum amount of US$ 1.04 per outstanding common or preferred share, to be paid to shareholders in two equal installments during the year. The first installment began to be distributed on April 30. The second installment will take place from October 31, 2003 onwards, together with the additional dividend announced on August 27, 2003.

The second installment of the minimum dividend was payed as follows:

1.		Distribution of interest on stockholders’ equity in the amount of R$ 568,083, equivalent to R$ 1.48 per outstanding preferred A share or common share. The value of R$ 1.48 per share is equal to US$ 0.52 per share converted into Brazilian reais by the 2.8425 R$/USD offer exchange rate of USD, as divulged by the Brazilian Central Bank on October 14, 2003, according to the procedures previously announced on 01/30/03.

2.		The payment will take place from October 31, 2003 onwards. The distribution of interest on stockholders’ equity is subject to withholding income tax, in accordance with the Law 9,249 of December 26, 1995.

For the second installment of the minimum dividend payment to shareholders, approved on 10/15/03, the record date for CVRD shares traded on the São Paulo Stock Exchange (BOVESPA) will also be on 10/15/03. Concerning the American Depositary Receipts (ADRs) traded on the New York Stock Exchange (NYSE), the record date was October 20, 2003. All CVRD shareholders that hold the Company’s shares at the record dates were entitled to receive interest on stockholders’ equity. CVRD shares will be traded ex-dividend, on both stock exchanges, since October 16, 2003 onwards.

According to the press release of August 27, the additional dividend payment to CVRD shareholders is equal to R$ 1.94 per outstanding preferred A share or common share and was payed since October 31, 2003.

Therefore, since October 31, 2003, CVRD distributed to its shareholders interest on stockholders’ equity in the amount of R$ 3.42 per outstanding preferred A share or common share.

During 2003, CVRD is paying to its shareholders the two installments of the minimum dividend – one of R$ 1.62 per share, paid from April 30 onwards, and another one of R$ 1.48 per share, which will be distributed from October 31 onwards – and the additional payment of R$ 1.94 per share. These add up to a distribution to CVRD’s shareholders of interest on stockholders’ equity of R$ 5.04 per outstanding preferred A share or common share, totaling R$ 1,934,552.

CVRD Sells Its Stake in Fosfértil

On 10/24/03 the subsidiary Companhia Paulista de Ferro Ligas (CPFL) concluded the sale of Fertilizantes Fosfatados S.A. (Fosfértil) shares to Bunge Fertilizantes S.A. for R$ 240 million. The transaction involved 3,955,293,931 common shares and 7,910,587,866 preferred shares, totaling 11,865,881,797 shares, representing respectively 10.96% of the voting capital, 11.19% of the preferred capital and 11.12% of the total capital of Fosfértil.

This transaction is consistent with CVRD´s focus in mining and logistics and with its strategy of selling portfolio investments.

CVRD Simplifies Operational Structure

On 10/28/03 the Company informs that it took some steps to simplify the operational structure of its manganese ferroalloy business.

Since 10/15/03, CVRD’s subsidiary SIBRA – Eletrosiderúrgica Brasileira S.A. (SIBRA) was redenominated Rio Doce Manganês S.A. (RDM). The operations of RDM subsidiaries, including Companhia Paulista de Ferro Ligas (CPFL), will be transferred to RDM from January 2004 onwards.

Currently, the main RDM assets are the Azul mine, located in Carajás, state of Pará, Brazil, with annual production capacity of 2 million tons of manganese ore, and a manganese ferro-alloy plant, with annual production capacity of 180,000 tons, located in Simões Filho, state of Bahia, Brazil. CPFL owns four ferro-alloy plants in the state of Minas Gerais (Barbacena, Ouro Preto, Santa Rita and São João del Rei). After the consolidation of CPFL assets and other smaller subsidiaries that produce manganese ore, located in the states of Minas Gerais and


	CVRD	29

Bahia (Minérios Metalúrgicos do Nordeste S.A., Mineração Urandi S.A. and Sociedade Mineira de Mineração Ltda.), RDM will have a total annual production capacity of 2,330,000 tons of manganese ore and 350,000 tons of manganese ferro-alloy.

CVRD manganese and ferro-alloy operations will be held through four wholly owned subsidiaries: RDM, Urucum Mineração S.A., in Corumbá, Mato Grosso do Sul state, Rio Doce Manganese Europe (RDME), in Dunkerque, France, and Rio Doce Manganese Norway (RDMN), in Mo I Rana, Norway.

CVRD is the world’s second largest manganese ore producer, with total annual production capacity of 2.9 million tons.

CVRD Concludes the Restructuring of Logistics Companies

On 11/07/03 CVRD concluded the restructuring of stakes in logistics companies, as publicly announced on 04/16/03 and 09/18/03.

The conclusion of the transactions aimed at the elimination of the relationships between CVRD and Companhia Siderúrgica Nacional (CSN) in the shareholding structure of Ferrovia Centro-Atlântica S.A. (FCA), Companhia Ferroviária do Nordeste (CFN) and CSN Aceros S.A. (CSN Aceros). The following transactions were concluded:

a)		sale of all FCA shares held by CSN to Mineração Tacumã Ltda., a CVRD wholly owned subsidiary;

b)		sale of all CFN shares held by CVRD to CSN and Taquari Participações S.A.;

c)		sale of all CSN Aceros shares - which is a Sepetiba Tecon S.A. (STSA) shareholder - held by Itabira Rio Doce Company Limited, a CVRD wholly owned subsidiary, to CSN Panamá, a CSN subsidiary;

d)		transfer of all STSA convertible debentures held by CVRD to CSN; and

e)		signing of commercial contracts involving handling services of containers by STSA to CVRD, limestone transportation by FCA to CSN and limestone and bentonite transportation by CFN to CVRD.

The shares sales and purchases will imply a net expenditure of R$ 22.7 million by CVRD at the financial settlement date, 11/14/03.


30	CVRD

PART III

7- OTHER INFORMATION THE COMPANY DEEMS RELEVANT

7.1- Iron Ore and Pellet Sales (Main Markets) (Not Reviewed)


		(Millons of tons)

		1999		%		2000		%		2001		%		2002		%

FOREIGN MARKET
ASIA
	CHINA		7.3		8		9.2		8		14.9		12		17.5		12
	KOREA		7.9		8		7.0		6		6.0		5		7.1		5
	PHILIPPINES		1.6		2		1.4		1		1.2		1		2.6		2
	JAPAN		16.9		17		17.5		15		17.1		13		16.3		11
	TAIWAN		1.8		2		1.6		2		2.2		2		2.1		1
	OTHERS		0.6		—		0.4		—		1.1		1		0.0		—

			36.1		37		37.1		32		42.5		34		45.6		31

EUROPE
	GERMANY		8.0		8		8.2		7		10.1		8		14.7		10
	SPAIN		3.6		4		2.9		2		2.9		2		2.9		2
	FRANCE		2.1		2		2.9		2		3.9		3		5.8		4
	ITALY		5.0		5		4.8		4		5.1		4		5.2		3
	UNITED KINGDOM		1.6		2		1.5		2		1.6		1		2.3		2
	OTHERS		4.7		5		8.2		7		10.8		8		13.4		9

			25.0		26		28.5		24		34.4		26		44.3		30

AMERICAS
	ARGENTINA		1.6		2		1.4		1		1.9		1		2.3		2
	UNITED STATES		3.0		3		3.5		3		2.9		2		3.8		2
	OTHERS		1.8		2		2.0		2		1.5		1		2.4		2

			6.4		7		6.9		6		6.3		4		8.5		6

AFRICA/MID.EAST/OCEANIA
	BAHRAIN		1.5		2		2.0		2		1.7		1		2.4		2
	OTHERS		3.6		4		5.2		4		5.1		4		4.3		3

			5.1		6		7.2		6		6.8		5		6.7		5

			72.6		76		79.7		68		90.0		69		105.1		72

DOMESTIC MARKET
	STEEL MILLS		13.6		14		15.5		13		20.2		16		22.3		15
	PELLETIZING AFFILIATES		10.1		10		21.6		19		19.7		15		18.9		13

			23.7		24		37.1		32		39.9		31		41.2		28

TOTAL			96.3		100		116.8		100		129.9		100		146.3		100

[Additional columns below]

[Continued from above table, first column(s) repeated]


		(Millons of tons)

		Quarter												Accumulated

		3Q/02		%		2Q/03		%		3Q/03		%		09/30/02		%		09/30/03		%

FOREIGN MARKET
ASIA
	CHINA		4.2		11		4.8		13		7.1		19		13.6		13		17.3		16
	KOREA		2.0		5		1.7		5		1.7		4		5.2		5		5.0		4
	PHILIPPINES		0.7		2		0.6		2		0.6		1		1.8		2		1.6		1
	JAPAN		4.0		11		4.1		11		4.1		10		12.0		11		12.1		11
	TAIWAN		0.5		1		0.5		1		0.5		1		1.3		1		1.4		1
	OTHERS		0.0		—		—		—		—		—		—		—		—		—

			11.4		30		11.7		32		14.0		35		33.9		32		37.4		33

EUROPE
	GERMANY		3.6		10		2.8		8		4.4		11		10.4		10		10.7		9
	SPAIN		0.7		2		0.9		3		0.4		1		2.2		2		2.1		2
	FRANCE		1.4		4		2.3		6		1.7		4		4.2		4		5.4		5
	ITALY		0.8		2		1.2		3		1.2		3		4.0		4		3.6		3
	UNITED KINGDOM		0.8		2		0.6		2		0.6		1		1.9		2		1.7		2
	OTHERS		3.6		10		2.8		8		3.6		9		9.7		9		9.6		8

			10.9		30		10.6		30		11.9		29		32.4		31		33.1		29

AMERICAS
	ARGENTINA		0.6		2		0.8		2		0.7		2		1.6		1		2.3		2
	UNITED STATES		1.2		3		0.8		2		1.0		3		3.1		3		2.8		2
	OTHERS		0.7		2		0.6		2		0.7		2		1.5		1		2.1		2

			2.5		7		2.2		6		2.4		7		6.2		5		7.2		6

AFRICA/MID.EAST/OCEANIA
	BAHRAIN		0.6		2		0.4		1		1.0		2		1.9		2		1.9		2
	OTHERS		1.2		3		2.0		5		0.5		1		2.7		3		3.5		3

			1.8		5		2.4		6		1.5		3		4.6		5		5.4		5

			26.6		72		26.9		74		29.8		74		77.1		73		83.1		73

DOMESTIC MARKET
	STEEL MILLS		5.4		15		4.6		13		5.7		14		16.3		14		15.4		14
	PELLETIZING AFFILIATES		4.9		13		4.9		13		4.7		12		13.6		13		14.6		13

			10.3		28		9.5		26		10.4		26		29.9		27		30.0		27

TOTAL			36.9		100		36.4		100		40.2		100		107.0		100		113.1		100

Exports by System


	(Millons of tons)

	1999		%		2000		%		2001		%		2002		%

NORTHERN SYSTEM		42.8		44		46.6		40		50.8		39		53.0		36
SOUTHERN SYSTEM		53.5		56		70.2		60		79.1		61		93.3		64

		96.3		100		116.8		100		129.9		100		146.3		100

[Additional columns below]

[Continued from above table, first column(s) repeated]


	(Millons of tons)

	Quarter												Accumulated

	3Q/02		%		2Q/03		%		3Q/03		%		09/30/02		%		09/30/03		%

NORTHERN SYSTEM		14.1		38		13.9		38		14.0		35		38.7		36		41.3		37
SOUTHERN SYSTEM		22.8		62		22.5		62		26.2		65		68.3		64		71.8		63

		36.9		100		36.4		100		40.2		100		107.0		100		113.1		100


CVRD	31

PART IV

8- ATTACHMENT I - EQUITY INVESTEE INFORMATION

8.1- Aluminum Area - ALBRAS (Adjusted and Not Reviewed)


Information			2003

			1Q			2Q			3Q			4Q		Total

Quantity sold - external market	MT (thousand)			99			102			107			—		308
Quantity sold - internal market	MT (thousand)			4			4			4			—		12

Quantity sold - total	MT (thousand)			103			106			111			—		320

Average sales price - external market	US$			1,336.40			1,324.49			1,365.02			—		1,342.40
Average sales price - internal market	US$			1,376.14			1,365.10			1,398.92			—		1,380.05
Average sales price - total	US$			1,337.98			1,326.07			1,366.25			—		1,343.84
Long-term indebtedness, gross	US$			451,354			400,002			386,528			—		386,528
Short-term indebtedness, gross	US$			—			—			—			—		—

Total indebtedness, gross	US$			451,354			400,002			386,528			—		386,528

Stockholders’ equity		R$		479,916			726,619			797,715			—		797,715

Net operating revenues		R$		479,659			423,513			446,000			—		1,349,172
Cost of products		R$		(284,827	)		(271,302	)		(274,413	)		—		(830,542	)
Other expenses/revenues		R$		(16,325	)		(11,421	)		(16,692	)		—		(44,438	)
Depreciation, amortization and depletion		R$		17,675			16,188			15,241			—		49,104

EBITDA		R$		196,182			156,978			170,136			—		523,296
Depreciation, amortization and depletion		R$		(17,675	)		(16,188	)		(15,241	)		—		(49,104	)

EBIT		R$		178,507			140,790			154,895			—		474,192
Impairment		R$		—			(11,837	)		692			—		(11,145	)
Net financial result		R$		63,862			176,318			(76,113	)		—		164,067

Income before income tax and social contribution		R$		242,369			305,271			79,474			—		627,114
Income tax and social contribution		R$		(19,192	)		(58,568	)		(8,378	)		—		(86,138	)

Net income		R$		223,177			246,703			71,096			—		540,976

[Additional columns below]

[Continued from above table, first column(s) repeated]


Information			2002

			1Q			2Q			3Q			4Q			Total

Quantity sold - external market	MT (thousand)			84			108			101			100			393
Quantity sold - internal market	MT (thousand)			4			2			3			4			13

Quantity sold - total	MT (thousand)			88			110			104			104			406

Average sales price - external market	US$			1,318.33			1,409.42			1,288.20			1,304.79			1,304.70
Average sales price - internal market	US$			1,352.12			1,330.47			1,335.69			1,356.26			1,355.55
Average sales price - total	US$			1,319.81			1,332.13			1,289.68			1,306.47			1,306.38
Long-term indebtedness, gross	US$			524,095			506,633			498,857			465,815			465,815
Short-term indebtedness, gross	US$			72,938			48,840			20,156			20,475			20,475

Total indebtedness, gross	US$			597,033			555,473			519,013			486,290			486,290

Stockholders’ equity		R$		299,202			113,162			(209,047	)		256,739			256,739

Net operating revenues		R$		273,853			366,494			414,264			489,744			1,544,355
Cost of products		R$		(170,834	)		(223,590	)		(248,895	)		(288,173	)		(931,492	)
Other expenses/revenues		R$		(13,308	)		(10,054	)		(22,210	)		(5,968	)		(51,540	)
Depreciation, amortization and depletion		R$		15,555			17,076			17,423			17,490			67,544

EBITDA		R$		105,266			149,926			160,582			213,093			628,867
Depreciation, amortization and depletion		R$		(15,555	)		(17,076	)		(17,423	)		(17,490	)		(67,544	)

EBIT		R$		89,711			132,850			143,159			195,603			561,323
Impairment		R$		—			—			—			—			—
Net financial result		R$		(11,141	)		(332,532	)		(505,233	)		175,923			(672,983	)

Income before income tax and social contribution		R$		78,570			(199,682	)		(362,074	)		371,526			(111,660	)
Income tax and social contribution		R$		(2,627	)		13,645			39,863			88,259			139,140

Net income		R$		75,943			(186,037	)		(322,211	)		459,785			27,480


CVRD	32

8.2- Aluminum Area - ALUNORTE (Adjusted and Not Reviewed)


Information			2003

			1Q			2Q			3Q			4Q		Total

Quantity sold - external market	MT (thousand)			289			303			395			—		987
Quantity sold - internal market	MT (thousand)			201			234			236			—		671

Quantity sold - total	MT (thousand)			490			537			631			—		1,658

Average sales price - external market	US$			170.93			172.57			190.01			—		179.07
Average sales price - internal market	US$			173.60			175.13			178.71			—		175.93
Average sales price - total	US$			172.03			173.68			185.78			—		177.80
Long-term indebtedness, gross	US$			482,418			494,325			478,755			—		478,755
Short-term indebtedness, gross	US$			—			3,900			8,355			—		8,355

Total indebtedness, gross	US$			482,418			498,225			487,110			—		487,110

Stockholders’ equity		R$		546,444			697,885			788,738			—		788,738

Net operating revenues		R$		291,962			273,014			339,513			—		904,489
Cost of products		R$		(217,680	)		(217,735	)		(234,580	)		—		(669,995	)
Other expenses/revenues		R$		(6,021	)		(5,860	)		(12,986	)		—		(24,867	)
Depreciation, amortization and depletion		R$		15,240			18,993			17,340			—		51,573

EBITDA		R$		83,501			68,412			109,287			—		261,200
Depreciation, amortization and depletion		R$		(15,240	)		(18,993	)		(17,340	)		—		(51,573	)

EBIT		R$		68,261			49,419			91,947			—		209,627
Impairment		R$		—			—			—			—		—
Net financial result		R$		43,764			136,576			(62,039	)		—		118,301

Income before income tax and social contribution		R$		112,025			185,995			29,908			—		327,928
Income tax and social contribution		R$		(10,084	)		(34,554	)		(6,561	)		—		(51,199	)

Net income		R$		101,941			151,441			23,347			—		276,729

[Additional columns below]

[Continued from above table, first column(s) repeated]


Information			2002

			1Q			2Q			3Q			4Q			Total

Quantity sold - external market	MT (thousand)			222			175			115			208			720
Quantity sold - internal market	MT (thousand)			205			235			233			199			872

Quantity sold - total	MT (thousand)			427			410			348			407			1,592

Average sales price - external market	US$			148.20			152.79			162.37			154.43			153.39
Average sales price - internal market	US$			175.94			175.38			173.97			169.51			173.79
Average sales price - total	US$			161.55			165.72			170.13			161.79			164.56
Long-term indebtedness, gross	US$			455,061			455,194			472,590			481,370			481,370
Short-term indebtedness, gross	US$			—			—			—			—			—

Total indebtedness, gross	US$			455,061			455,194			472,590			481,370			481,370

Stockholders’ equity		R$		573,946			451,686			226,155			444,502			444,502

Net operating revenues		R$		164,875			173,891			196,154			250,025			784,945
Cost of products		R$		(135,765	)		(134,556	)		(131,291	)		(174,286	)		(575,898	)
Other expenses/revenues		R$		(7,381	)		(3,787	)		(4,079	)		(6,946	)		(22,193	)
Depreciation, amortization and depletion		R$		12,802			13,351			12,853			12,880			51,886

EBITDA		R$		34,531			48,899			73,637			81,673			238,740
Depreciation, amortization and depletion		R$		(12,802	)		(13,351	)		(12,853	)		(12,880	)		(51,886	)

EBIT		R$		21,729			35,548			60,784			68,793			186,854
Impairment		R$		—			—			—			—			—
Net financial result		R$		(10,936	)		(198,404	)		(374,193	)		114,042			(469,491	)

Income before income tax and social contribution		R$		10,793			(162,856	)		(313,409	)		182,835			(282,637	)
Income tax and social contribution		R$		(726	)		20,677			6,396			73,270			99,617

Net income		R$		10,067			(142,179	)		(307,013	)		256,105			(183,020	)


CVRD	33

8.3- Aluminum Area - ALUVALE (Adjusted and Not Reviewed)


Information		2003

		1Q			2Q			3Q			4Q		Total

Stockholders’ equity	R$		1,115,779			1,351,652			1,448,395			—		1,448,395

Net operating revenues	R$		7,429			3,538			5,834			—		16,801
Cost of products	R$		—			—			—			—		—
Other expenses/revenues	R$		(1,218	)		(878	)		(915	)		—		(3,011	)
Dividends received	R$		17,166			5,450			34,000			—		56,616

EBITDA	R$		23,377			8,110			38,919			—		70,406
Dividends received	R$		(17,166	)		(5,450	)		(34,000	)		—		(56,616	)

EBIT	R$		6,211			2,660			4,919			—		13,790
Impairment	R$		—			—			—			—		—
Result of equity investments	R$		210,564			241,411			93,127			—		545,102
Net financial result	R$		3,682			4,058			1,947			—		9,687

Income before income tax and social contribution	R$		220,457			248,129			99,993			—		568,579
Income tax and social contribution	R$		6,545			(1,697	)		(3,250	)		—		1,598

Net income	R$		227,002			246,432			96,743			—		570,177

[Additional columns below]

[Continued from above table, first column(s) repeated]


Information		2002

		1Q			2Q			3Q			4Q			Total

Stockholders’ equity	R$		891,456			751,522			447,879			916,533			916,533

Net operating revenues	R$		4,059			3,953			4,888			6,179			19,079
Cost of products	R$		(22	)		(47	)		(38	)		(36	)		(143	)
Other expenses/revenues	R$		(645	)		(650	)		(730	)		(10,177	)		(12,202	)
Dividends received	R$		29,430			28,000			23,200			23,167			103,797

EBITDA	R$		32,822			31,256			27,320			19,133			110,531
Dividends received	R$		(29,430	)		(28,000	)		(23,200	)		(23,167	)		(103,797	)

EBIT	R$		3,392			3,256			4,120			(4,034	)		6,734
Impairment	R$		—			—			—			—			—
Result of equity investments	R$		59,336			(146,796	)		(304,495	)		469,463			77,508
Net financial result	R$		4,918			5,469			900			2,029			13,316

Income before income tax and social contribution	R$		67,646			(138,071	)		(299,475	)		467,458			97,558
Income tax and social contribution	R$		(2,723	)		(1,862	)		(1,635	)		(1,338	)		(7,558	)

Net income	R$		64,923			(139,933	)		(301,110	)		466,120			90,000


34	CVRD

8.4- Aluminum Area - MRN (Adjusted and Not Reviewed)


Information			2003

			1Q			2Q			3Q			4Q		Total

Quantity sold - external market	MT (thousand)			711			958			1,324			—		2,993
Quantity sold - internal market	MT (thousand)			1,485			2,554			2,725			—		6,764

Quantity sold - total	MT (thousand)			2,196			3,512			4,049			—		9,757

Average sales price - external market	US$			21.31			21.20			21.27			—		21.26
Average sales price - internal market	US$			18.24			18.15			18.21			—		18.19
Average sales price - total	US$			19.23			18.98			19.21			—		19.13
Long-term indebtedness, gross	US$			69,222			65,380			58,041			—		58,041
Short-term indebtedness, gross	US$			44,004			134,221			144,883			—		144,883

Total indebtedness, gross	US$			113,226			199,601			202,924			—		202,924

Stockholders’ equity		R$		731,822			807,051			825,693			—		825,693

Net operating revenues		R$		139,951			183,786			211,492			—		535,229
Cost of products		R$		(69,487	)		(89,073	)		(99,781	)		—		(258,341	)
Other expenses/revenues		R$		(5,305	)		(2,838	)		(5,251	)		—		(13,394	)
Depreciation, amortization and depletion		R$		14,854			17,733			21,391			—		53,978

EBITDA		R$		80,013			109,608			127,851			—		317,472
Depreciation, amortization and depletion		R$		(14,854	)		(17,733	)		(21,391	)		—		(53,978	)

EBIT		R$		65,159			91,875			106,460			—		263,494
Result of equity investments		R$		—			—			—			—		—
Impairment		R$		—			—			—			—		—
Net financial result		R$		(239	)		(10,994	)		(2,484	)		—		(13,717	)

Income before income tax and social contribution		R$		64,920			80,881			103,976			—		249,777
Income tax and social contribution		R$		(5,421	)		(5,652	)		(7,146	)		—		(18,219	)

Net income		R$		59,499			75,229			96,830			—		231,558

[Additional columns below]

[Continued from above table, first column(s) repeated]


Information			2002

			1Q			2Q			3Q			4Q			Total

Quantity sold - external market	MT (thousand)			485			790			740			601			2,616
Quantity sold - internal market	MT (thousand)			1,296			1,821			1,814			2,381			7,312

Quantity sold - total	MT (thousand)			1,781			2,611			2,554			2,982			9,928

Average sales price - external market	US$			20.56			19.09			19.21			21.42			19.93
Average sales price - internal market	US$			19.46			18.01			18.16			20.32			19.06
Average sales price - total	US$			19.76			18.34			18.46			20.54			18.95
Long-term indebtedness, gross	US$			95,892			90,312			77,786			76,120			76,120
Short-term indebtedness, gross	US$			14,436			18,780			23,198			29,265			29,265

Total indebtedness, gross	US$			110,328			109,092			100,984			105,385			105,385

Stockholders’ equity		R$		594,895			562,633			498,041			672,322			672,322

Net operating revenues		R$		76,448			111,452			146,949			204,098			538,947
Cost of products		R$		(39,697	)		(60,627	)		(72,806	)		(78,149	)		(251,279	)
Other expenses/revenues		R$		(582	)		(5,260	)		(1,577	)		(2,993	)		(10,412	)
Depreciation, amortization and depletion		R$		9,840			13,325			14,617			14,701			52,483

EBITDA		R$		46,009			58,890			87,183			137,657			329,739
Depreciation, amortization and depletion		R$		(9,840	)		(13,325	)		(14,617	)		(14,701	)		(52,483	)

EBIT		R$		36,169			45,565			72,566			122,956			277,256
Result of equity investments		R$		(3,403	)		(1,347	)		—			2,000			(2,750	)
Impairment		R$		—			—			—			17,015			17,015
Net financial result		R$		(1,804	)		(32,286	)		(73,730	)		102,120			(5,700	)

Income before income tax and social contribution		R$		30,962			11,932			(1,164	)		244,091			285,821
Income tax and social contribution		R$		(6,522	)		(4,139	)		(5,429	)		(26,264	)		(42,354	)

Net income		R$		24,440			7,793			(6,593	)		217,827			243,467


CVRD	35

8.5- Aluminum Area - VALESUL (Adjusted and Not Reviewed)


Information			2003

			1Q			2Q			3Q			4Q		Total

Quantity sold - external market	MT (thousand)			9			15			17			—		41
Quantity sold - internal market	MT (thousand)			10			9			9			—		28

Quantity sold - total	MT (thousand)			19			24			26			—		69

Average sales price - external market	US$			1,505.49			1,516.01			1,518.30			—		1,514.65
Average sales price - internal market	US$			1,933.02			1,970.53			1,974.21			—		1,958.32
Average sales price - total	US$			1,730.60			1,685.83			1,668.32			—		1,691.56
Long-term indebtedness, gross	US$			1,048			1,075			906			—		906
Short-term indebtedness, gross	US$			617			732			729			—		729

Total indebtedness, gross	US$			1,665			1,807			1,635			—		1,635

Stockholders’ equity		R$		288,362			272,644			286,057			—		286,057

Net operating revenues		R$		108,088			112,328			121,231			—		341,647
Cost of products		R$		(68,912	)		(88,666	)		(99,075	)		—		(256,653	)
Other expenses/revenues		R$		(6,613	)		(15,368	)		(4,259	)		—		(26,240	)
Depreciation, amortization and depletion		R$		2,816			6,043			3,900			—		12,759

EBITDA		R$		35,379			14,337			21,797			—		71,513
Depreciation, amortization and depletion		R$		(2,816	)		(6,043	)		(3,900	)		—		(12,759	)

EBIT		R$		32,563			8,294			17,897			—		58,754
Impairment		R$		—			—			—			—		—
Net financial result		R$		(186	)		(413	)		1,224			—		625

Income before income tax and social contribution		R$		32,377			7,881			19,121			—		59,379
Income tax and social contribution		R$		(5,214	)		(4,891	)		(5,708	)		—		(15,813	)

Net income		R$		27,163			2,990			13,413			—		43,566

[Additional columns below]

[Continued from above table, first column(s) repeated]


Information			2002

			1Q			2Q			3Q			4Q			Total

Quantity sold - external market	MT (thousand)			9			12			8			13			42
Quantity sold - internal market	MT (thousand)			12			12			10			14			48

Quantity sold - total	MT (thousand)			21			24			18			27			90

Average sales price - external market	US$			1,467.44			1,481.49			1,485.09			1,413.67			1,459.01
Average sales price - internal market	US$			1,906.21			1,865.52			1,779.65			1,801.29			1,837.32
Average sales price - total	US$			1,720.97			1,663.20			1,654.96			1,618.98			1,661.77
Long-term indebtedness, gross	US$			1,868			1,416			953			1,115			1,115
Short-term indebtedness, gross	US$			685			555			409			579			579

Total indebtedness, gross	US$			2,553			1,971			1,362			1,694			1,694

Stockholders’ equity		R$		231,170			246,030			266,074			261,206			261,206

Net operating revenues		R$		77,727			92,816			93,602			146,180			410,325
Cost of products		R$		(63,576	)		(71,701	)		(61,711	)		(86,531	)		(283,519	)
Other expenses/revenues		R$		(3,168	)		(1,218	)		(6,560	)		(14,275	)		(25,221	)
Depreciation, amortization and depletion		R$		3,332			3,600			2,826			3,235			12,993

EBITDA		R$		14,315			23,497			28,157			48,609			114,578
Depreciation, amortization and depletion		R$		(3,332	)		(3,600	)		(2,826	)		(3,235	)		(12,993	)

EBIT		R$		10,983			19,897			25,331			45,374			101,585
Impairment		R$		—			—			—			—			—
Net financial result		R$		(597	)		621			(945	)		(1,767	)		(2,688	)

Income before income tax and social contribution		R$		10,386			20,518			24,386			43,607			98,897
Income tax and social contribution		R$		(4,122	)		(5,652	)		(4,344	)		(5,980	)		(20,098	)

Net income		R$		6,264			14,866			20,042			37,627			78,799


36	CVRD

8.6- Pelletizing Area - HISPANOBRÁS (Adjusted and Not Reviewed)


Information			2003

			1Q			2Q			3Q			4Q		Total

Quantity sold - external market	MT (thousand)			268			625			94			—		987
Quantity sold - internal market	MT (thousand)			637			265			730			—		1,632

Quantity sold - total	MT (thousand)			905			890			824			—		2,619

Average sales price - external market	US$			29.54			33.75			32.62			—		32.50
Average sales price - internal market	US$			29.95			38.90			32.56			—		32.57
Average sales price - total	US$			29.75			36.33			32.59			—		32.88

Stockholders’ equity		R$		90,872			96,630			97,800			—		97,800

Net operating revenues		R$		94,344			93,258			78,906			—		266,508
Cost of products		R$		(81,263	)		(85,278	)		(63,550	)		—		(230,091	)
Other expenses/income		R$		(1,783	)		6,561			(10,505	)		—		(5,727	)
Depreciation, amortization and depletion		R$		2,386			2,400			2,442			—		7,228

EBITDA		R$		13,684			16,941			7,293			—		37,918
Depreciation, amortization and depletion		R$		(2,386	)		(2,400	)		(2,442	)		—		(7,228	)

EBIT		R$		11,298			14,541			4,851			—		30,690
Impairment		R$		—			—			159			—		159
Net financial result		R$		(3,544	)		(6,871	)		344			—		(10,071	)

Income before income tax and social contribution		R$		7,754			7,670			5,354			—		20,778
Income tax and social contribution		R$		(3,264	)		330			(1,748	)		—		(4,682	)

Net income		R$		4,490			8,000			3,606			—		16,096

[Additional columns below]

[Continued from above table, first column(s) repeated]


Information			2002

			1Q			2Q			3Q			4Q			Total

Quantity sold - external market	MT (thousand)			487			356			165			313			1,321
Quantity sold - internal market	MT (thousand)			420			480			520			826			2,246

Quantity sold - total	MT (thousand)			907			836			685			1,139			3,567

Average sales price - external market	US$			31.33			31.49			31.39			24.28			29.71
Average sales price - internal market	US$			31.43			31.63			32.28			27.31			30.15
Average sales price - total	US$			31.38			31.56			32.07			25.80			29.77

Stockholders’ equity		R$		85,476			85,790			93,568			86,381			86,381

Net operating revenues		R$		67,353			59,359			67,336			125,613			319,661
Cost of products		R$		(57,628	)		(55,855	)		(56,920	)		(105,712	)		(276,115	)
Other expenses/income		R$		(2,202	)		(5,727	)		(3,360	)		(3,373	)		(14,662	)
Depreciation, amortization and depletion		R$		2,458			2,458			2,322			2,377			9,615

EBITDA		R$		9,981			235			9,378			18,905			38,499
Depreciation, amortization and depletion		R$		(2,458	)		(2,458	)		(2,322	)		(2,377	)		(9,615	)

EBIT		R$		7,523			(2,223	)		7,056			16,528			28,884
Impairment		R$		—			—			—			—			—
Net financial result		R$		854			5,888			7,899			(3,444	)		11,197

Income before income tax and social contribution		R$		8,377			3,665			14,955			13,084			40,081
Income tax and social contribution		R$		(3,362	)		(1,480	)		(5,395	)		(4,656	)		(14,893	)

Net income		R$		5,015			2,185			9,560			8,428			25,188


CVRD	37

8.7- Pelletizing Area - ITABRASCO (Adjusted and Not Reviewed)


Information			2003

			1Q			2Q			3Q			4Q		Total

Quantity sold - external market	MT (thousand)			306			778			838			—		1,922
Quantity sold - internal market	MT (thousand)			507			65			—			—		572

Quantity sold - total	MT (thousand)			813			843			838			—		2,494

Average sales price - external market	US$			29.97			33.53			32.96			—		32.71
Average sales price - internal market	US$			29.20			55.87			—			—		32.23
Average sales price - total	US$			29.54			35.25			32.96			—		32.62
Short-term indebtedness, gross	US$			4,854			480			471			—		471

Total indebtedness, gross	US$			4,854			480			471			—		471

Stockholders’ equity		R$		59,216			65,064			68,819			—		68,819

Net operating revenues		R$		85,607			91,423			80,037			—		257,067
Cost of products		R$		(73,246	)		(76,224	)		(73,297	)		—		(222,767	)
Other expenses/revenues		R$		(2,200	)		(1,123	)		(2,355	)		—		(5,678	)
Depreciation, amortization and depletion		R$		(379	)		(381	)		(416	)		—		(1,176	)

EBITDA		R$		9,782			13,695			3,969			—		27,446
Depreciation, amortization and depletion		R$		379			381			416			—		1,176

EBIT		R$		10,161			14,076			4,385			—		28,622
Impairment		R$		—			—			—			—		—
Net financial result		R$		(3,441	)		(4,782	)		1,798			—		(6,425	)

Income before income tax and social contribution		R$		6,720			9,294			6,183			—		22,197
Income tax and social contribution		R$		(3,308	)		(3,446	)		(2,428	)		—		(9,182	)

Net income		R$		3,412			5,848			3,755			—		13,015

[Additional columns below]

[Continued from above table, first column(s) repeated]


Information			2002

			1Q			2Q			3Q			4Q			Total

Quantity sold - external market	MT (thousand)			644			533			572			431			2,180
Quantity sold - internal market	MT (thousand)			233			169			243			482			1,127

Quantity sold - total	MT (thousand)			877			702			815			913			3,307

Average sales price - external market	US$			31.16			28.46			29.96			30.01			29.71
Average sales price - internal market	US$			31.90			27.79			30.33			30.60			29.13
Average sales price - total	US$			31.35			28.30			30.06			30.18			29.51
Short-term indebtedness, gross	US$			18,023			17,133			15,504			—			—

Total indebtedness, gross	US$			18,023			17,133			15,504			—			—

Stockholders’ equity		R$		60,230			65,720			78,454			55,804			55,804

Net operating revenues		R$		65,575			49,920			79,980			94,340			289,815
Cost of products		R$		(56,551	)		(47,528	)		(66,616	)		(88,703	)		(259,398	)
Other expenses/revenues		R$		(3,784	)		(2,224	)		(5,969	)		3,872			(8,105	)
Depreciation, amortization and depletion		R$		327			331			321			412			1,391

EBITDA		R$		5,567			499			7,716			9,921			23,703
Depreciation, amortization and depletion		R$		(327	)		(331	)		(321	)		(412	)		(1,391	)

EBIT		R$		5,240			168			7,395			9,509			22,312
Impairment		R$		—			—			—			—			—
Net financial result		R$		(636	)		9,277			13,004			(5,099	)		16,546

Income before income tax and social contribution		R$		4,604			9,445			20,399			4,410			38,858
Income tax and social contribution		R$		(2,143	)		(3,954	)		(7,666	)		2,019			(11,744	)

Net income		R$		2,461			5,491			12,733			6,429			27,114


38	CVRD

8.8- Pelletizing Area - KOBRASCO (Adjusted and Not Reviewed)


			2003

Information				1Q		2Q		3Q		4Q	Total

Quantity sold - external market	MT (thousand)			453		667		800		—	1,920
Quantity sold - internal market	MT (thousand)			681		461		200		—	1,342

Quantity sold - total	MT (thousand)			1,134		1,128		1,000		—	3,262

Average sales price - external market	US$			29.89		29.98		33.57		—	31.45
Average sales price - internal market	US$			30.72		30.90		38.68		—	31.97
Average sales price - total	US$			30.39		30.35		34.59		—	31.66
Long-term indebtedness, gross	US$			123,624		102,229		102,417		—	102,417

Total indebtedness, gross	US$			123,624		102,229		102,417		—	102,417

Stockholders’ equity		R$		(89,160	)	(53,817	)	(49,072	)	—	(49,072	)

Net operating revenues		R$		116,656		101,678		101,713		—	320,047
Cost of products		R$		(95,131	)	(89,305	)	(82,257	)	—	(266,693	)
Other expenses/revenues		R$		(7,537	)	(6,124	)	(3,256	)	—	(16,917	)
Depreciation, amortization and depletion		R$		2,262		2,269		2,268		—	6,799

EBITDA		R$		16,250		8,518		18,468		—	43,236
Depreciation, amortization and depletion		R$		(2,262	)	(2,269	)	(2,268	)	—	(6,799	)

EBIT		R$		13,988		6,249		16,200		—	36,437
Impairment		R$		—		—		—		—	—
Result of equity investments		R$		—		—		—		—	—
Net financial result		R$		18,296		49,781		(7,653	)	—	60,424

Income before income tax and social contribution		R$		32,284		56,030		8,547		—	96,861
Income tax and social contribution		R$		(14,094	)	(20,687	)	(3,802	)	—	(38,583	)

Net income		R$		18,190		35,343		4,745		—	58,278

[Additional columns below]

[Continued from above table, first column(s) repeated]


			2002

Information				1Q		2Q		3Q		4Q		Total

Quantity sold - external market	MT (thousand)			436		534		850		1,074		2,894
Quantity sold - internal market	MT (thousand)			420		478		—		242		1,140

Quantity sold - total	MT (thousand)			856		1,012		850		1,316		4,034

Average sales price - external market	US$			31.31		29.34		29.47		29.89		29.88
Average sales price - internal market	US$			32.08		29.24		—		30.32		30.51
Average sales price - total	US$			31.69		29.30		29.47		29.97		30.09
Long-term indebtedness, gross	US$			149,583		143,378		147,150		114,489		114,489

Total indebtedness, gross	US$			149,583		143,378		147,150		114,489		114,489

Stockholders’ equity		R$		16,608		(32,692	)	(124,990	)	(107,350	)	(107,350	)

Net operating revenues		R$		63,984		72,449		74,427		143,092		353,952
Cost of products		R$		(50,027	)	(67,075	)	(60,393	)	(111,687	)	(289,182	)
Other expenses/revenues		R$		(4,062	)	(2,119	)	(7,424	)	(29,062	)	(42,667	)
Depreciation, amortization and depletion		R$		2,248		2,248		2,250		2,253		8,999

EBITDA		R$		12,143		5,503		8,860		4,596		31,102
Depreciation, amortization and depletion		R$		(2,248	)	(2,248	)	(2,250	)	(2,253	)	(8,999	)

EBIT		R$		9,895		3,255		6,610		2,343		22,103
Impairment		R$		—		—		—		—		—
Result of equity investments		R$		57		939		1,766		(3,097	)	(335	)
Net financial result		R$		(3,811	)	(78,006	)	(147,117	)	45,279		(183,655	)

Income before income tax and social contribution		R$		6,141		(73,812	)	(138,741	)	44,525		(161,887	)
Income tax and social contribution		R$		(3,093	)	24,511		46,445		(26,886	)	40,977

Net income		R$		3,048		(49,301	)	(92,296	)	17,639		(120,910	)


CVRD		39

8.9- Pelletizing Area - NIBRASCO (Adjusted and Not Reviewed)


			2003

Information			1Q			2Q			3Q			4Q		Total

Quantity sold - external market	MT (thousand)			469			513			509			—		1,491
Quantity sold - internal market - CVRD	MT (thousand)			1,303			1,180			1,085			—		3,568
Quantity sold - internal market - Others	MT (thousand)			28			26			32			—		86

Quantity sold - total	MT (thousand)			1,800			1,719			1,626			—		5,145

Average sales price - external market	US$			28.76			27.69			32.96			—		29.83
Average sales price - internal market	US$			27.38			28.23			34.18			—		29.73
Average sales price - total	US$			27.75			28.07			33.79			—		29.76
Long-term indebtedness, gross	US$			1,200			—			—			—		—
Short-term indebtedness, gross	US$			2,400			2,400			2,400			—		2,400

Total indebtedness, gross	US$			3,600			2,400			2,400			—		2,400

Stockholders’ equity		R$		87,365			82,347			98,875			—		98,875

Net operating revenues		R$		174,765			147,060			173,854			—		495,679
Cost of products		R$		(167,405	)		(152,620	)		(155,759	)		—		(475,784	)
Other expenses/revenues		R$		(1,805	)		(1,879	)		(1,261	)		—		(4,945	)
Depreciation, amortization and depletion		R$		4,179			4,061			3,368			—		11,608

EBITDA		R$		9,734			(3,378	)		20,202			—		26,558
Depreciation, amortization and depletion		R$		(4,179	)		(4,061	)		(3,368	)		—		(11,608	)

EBIT		R$		5,555			(7,439	)		16,834			—		14,950
Impairment		R$		—			—			2,289			—		2,289
Net financial result		R$		1,341			2,359			(4,718	)		—		(1,018	)

Income before income tax and social contribution		R$		6,896			(5,080	)		14,405			—		16,221
Income tax and social contribution		R$		(3,728	)		64			2,124			—		(1,540	)

Net income		R$		3,168			(5,016	)		16,529			—		14,681

[Additional columns below]

[Continued from above table, first column(s) repeated]


			2002

Information			1Q			2Q			3Q			4Q			Total

Quantity sold - external market	MT (thousand)			407			686			290			783			2,166
Quantity sold - internal market - CVRD	MT (thousand)			584			1,544			1,520			1,301			4,949
Quantity sold - internal market - Others	MT (thousand)			9			27			32			32			100

Quantity sold - total	MT (thousand)			1,000			2,257			1,842			2,116			7,215

Average sales price - external market	US$			30.25			30.88			27.39			28.95			29.60
Average sales price - internal market	US$			30.49			31.58			25.69			28.25			28.77
Average sales price - total	US$			30.39			31.36			25.96			28.52			29.01
Long-term indebtedness, gross	US$			3,600			2,400			2,400			1,200			1,200
Short-term indebtedness, gross	US$			2,484			2,400			2,436			2,400			2,400

Total indebtedness, gross	US$			6,084			4,800			4,836			3,600			3,600

Stockholders’ equity		R$		78,682			84,259			88,040			101,698			101,698

Net operating revenues		R$		70,936			163,815			162,232			220,381			617,364
Cost of products		R$		(70,397	)		(144,430	)		(148,056	)		(190,547	)		(553,430	)
Other expenses/revenues		R$		(2,404	)		(5,035	)		(4,201	)		(8,326	)		(19,966	)
Depreciation, amortization and depletion		R$		4,217			4,218			4,218			4,206			16,859

EBITDA		R$		2,352			18,568			14,193			25,714			60,827
Depreciation, amortization and depletion		R$		(4,217	)		(4,218	)		(4,218	)		(4,206	)		(16,859	)

EBIT		R$		(1,865	)		14,350			9,975			21,508			43,968
Impairment		R$		—			—			—			—			—
Net financial result		R$		(2,463	)		(4,034	)		(2,136	)		883			(7,750	)

Income before income tax and social contribution		R$		(4,328	)		10,316			7,839			22,391			36,218
Income tax and social contribution		R$		66			(4,737	)		(4,062	)		(8,732	)		(17,465	)

Net income		R$		(4,262	)		5,579			3,777			13,659			18,753


40		CVRD

8.10- Pelletizing Area - SAMARCO (Adjusted and Not Reviewed)


			2003

Information			1Q			2Q			3Q			4Q		Total

Quantity sold - external market	MT (thousand)			3,338			3,339			3,359			—		10,036
Quantity sold - internal market - CVRD	MT (thousand)			650			938			569			—		2,157

Quantity sold - total	MT (thousand)			3,988			4,277			3,928			—		12,193

Average sales price - external market	US$			29.78			35.03			35.47			—		33.43
Average sales price - internal market	US$			16.39			16.57			17.56			—		16.78
Average sales price - total	US$			27.59			30.98			32.88			—		30.48

Long-term indebtedness, gross	US$			56,240			50,037			37,633			—		37,633
Short-term indebtedness, gross	US$			123,271			137,697			135,558			—		135,558

Total indebtedness, gross	US$			179,511			187,734			173,191			—		173,191

Stockholders’ equity		R$		627,216			641,120			658,437			—		658,437

Net operating revenues		R$		360,773			370,862			348,066			—		1,079,701
Cost of products		R$		(162,899	)		(166,282	)		(163,038	)		—		(492,219	)
Other expenses		R$		(10,940	)		(47,558	)		(33,311	)		—		(91,809	)
Depreciation, amortization and depletion		R$		9,955			10,899			10,867			—		31,721

EBITDA		R$		196,889			167,921			162,584			—		527,394
Depreciation, amortization and depletion		R$		(9,955	)		(10,899	)		(10,867	)		—		(31,721	)

EBIT		R$		186,934			157,022			151,717			—		495,673
Impairment		R$		—			(36,639	)		—			—		(36,639	)
Result of equity investments		R$		(2,699	)		17,512			(8,392	)		—		6,421
Net financial result		R$		(499	)		24,817			(14,011	)		—		10,307

Income before income tax and social contribution		R$		183,736			162,712			129,314			—		475,762
Income tax and social contribution		R$		(44,283	)		(20,477	)		(24,490	)		—		(89,250	)

Net income		R$		139,453			142,235			104,824			—		386,512

[Additional columns below]

[Continued from above table, first column(s) repeated]


			2002

Information			1Q			2Q			3Q			4Q			Total

Quantity sold - external market	MT (thousand)			2,629			2,886			3,275			3,370			12,160
Quantity sold - internal market - CVRD	MT (thousand)			672			550			596			464			2,282

Quantity sold - total	MT (thousand)			3,301			3,436			3,871			3,834			14,442

Average sales price - external market	US$			32.03			31.42			30.13			31.27			31.16
Average sales price - internal market	US$			14.59			14.95			15.81			14.30			14.94
Average sales price - total	US$			28.48			28.78			27.93			29.22			28.60

Long-term indebtedness, gross	US$			92,788			86,584			76,181			66,644			66,644
Short-term indebtedness, gross	US$			169,170			180,539			169,538			141,754			141,754

Total indebtedness, gross	US$			261,958			267,123			245,719			208,398			208,398

Stockholders’ equity		R$		510,038			417,935			344,369			493,837			493,837

Net operating revenues		R$		212,909			239,124			310,720			397,853			1,160,606
Cost of products		R$		(108,837	)		(114,932	)		(138,102	)		(144,512	)		(506,383	)
Other expenses		R$		(20,397	)		(28,730	)		(44,607	)		(21,058	)		(114,792	)
Depreciation, amortization and depletion		R$		7,897			9,358			9,043			8,835			35,133

EBITDA		R$		91,572			104,820			137,054			241,118			574,564
Depreciation, amortization and depletion		R$		(7,897	)		(9,358	)		(9,043	)		(8,835	)		(35,133	)

EBIT		R$		83,675			95,462			128,011			232,283			539,431
Impairment		R$		—			—			—			—			—
Result of equity investments		R$		2,155			(11,985	)		(42,146	)		17,045			(34,931	)
Net financial result		R$		(15,179	)		(95,410	)		(162,908	)		27,423			(246,074	)

Income before income tax and social contribution		R$		70,651			(11,933	)		(77,043	)		276,751			258,426
Income tax and social contribution		R$		(12,555	)		(7,431	)		3,671			(41,658	)		(57,973	)

Net income		R$		58,096			(19,364	)		(73,372	)		235,093			200,453


CVRD		41

8.11- Pelletizing Area - GIIC (Adjusted and Not Reviewed)


			2003

Information			*1Q ()**			2Q			3Q			4Q		Total

Quantity sold - external market	ton (mil)			772			1,178			900			—		2,850

Quantity sold - total	ton (mil)			772			1,178			900			—		2,850

Average sales price - external market	US$			41.00			43.30			41			—		42.01
Average sales price - total	US$			41.00			43.30			41			—		42.01

Long-term indebtedness, gross	US$			35,000			35,000			30,000			—		30,000

Total indebtedness, gross	US$			35,000			35,000			30,000			—		30,000

Stockholders’ equity		R$		225,520			242,118			218,186			—		218,186

Net operating revenues		R$		100,559			139,660			120,032			—		360,251
Cost of products		R$		(78,057	)		(106,465	)		(88,418	)		—		(272,940	)
Other expenses		R$		(9,416	)		(10,038	)		(11,702	)		—		(31,156	)
Depreciation, amortization and depletion		R$		3,038			505			2,804			—		6,347

EBITDA		R$		16,124			23,662			22,716			—		62,502
Depreciation, amortization and depletion		R$		(3,038	)		(505	)		(2,804	)		—		(6,347	)

EBIT		R$		13,086			23,157			19,912			—		56,155
Impairment		R$		—			—			—			—		—
Gain/loss in translation of currency		R$		—			(1,792	)		587			—		(1,205	)
Net financial result		R$		(574	)		(847	)		(585	)		—		(2,006	)

Net income		R$		12,512			20,518			19,914			—		52,944

[Additional columns below]

[Continued from above table, first column(s) repeated]


			2002

Information			1Q			2Q			3Q			4Q			Total

Quantity sold - external market	ton (mil)			823			676			643			932			3,074

Quantity sold - total	ton (mil)			823			676			643			932			3,074

Average sales price - external market	US$			41.76			40.30			41.55			40.40			40.98
Average sales price - total	US$			41.76			40.30			41.55			40.40			40.98

Long-term indebtedness, gross	US$			40,000			40,000			40,000			35,000			35,000

Total indebtedness, gross	US$			40,000			40,000			40,000			35,000			35,000

Stockholders’ equity		R$		154,278			193,243			271,537			257,226			257,226

Net operating revenues		R$		79,867			77,447			104,072			133,025			394,411
Cost of products		R$		(68,514	)		(67,518	)		(97,135	)		(109,373	)		(342,540	)
Other expenses		R$		(2,469	)		(5,654	)		829			(11,119	)		(18,413	)
Depreciation, amortization and depletion		R$		3,365			4,167			5,761			5,268			18,561

EBITDA		R$		12,249			8,442			13,527			17,801			52,019
Depreciation, amortization and depletion		R$		(3,365	)		(4,167	)		(5,761	)		(5,268	)		(18,561	)

EBIT		R$		8,884			4,275			7,766			12,533			33,458
Impairment		R$		—			—			—			—			—
Gain/loss in translation of currency		R$		—			1,716			1,044			2,376			5,136
Net financial result		R$		167			111			(845	)		(1,617	)		(2,184	)

Net income		R$		9,051			6,102			7,965			13,292			36,410

(*) The figures refers to the statements as of february/03.


42		CVRD

8.12- Iron Ore Area - FERTECO (Adjusted and Not Reviewed)


			2003

Information			1Q			2Q			3Q			4Q		Total

Quantity sold - external market - iron ore	MT (thousand)			3,503			2,917			1,417			—		7,837
Quantity sold - internal market - iron ore	MT (thousand)			1,376			1,509			1,433			—		4,318

Quantity sold - total - iron ore	MT (thousand)			4,879			4,426			2,850			—		12,155

Quantity sold - external market - pellets	MT (thousand)			358			514			393			—		1,265
Quantity sold - internal market - pellets	MT (thousand)			498			661			364			—		1,523

Quantity sold - total - pellets	MT (thousand)			856			1,175			757			—		2,788

Average sales price - external market - iron ore	US$			16.29			18.82			19.38			—		17.79
Average sales price - internal market - iron ore	US$			7.73			8.69			7.96			—		8.14
Average sales price - total - iron ore	US$			13.87			13.67			13.64			—		13.74
Average sales price - external market - pellets	US$			28.51			31.05			31.85			—		30.58
Average sales price - internal market - pellets	US$			30.40			32.42			33.05			—		31.91
Average sales price - total - pellets	US$			29.62			31.82			32.42			—		31.31
Long-term indebtedness, gross	US$			82,374			77,551			78,482			—		78,482
Short-term indebtedness, gross	US$			9,567			—			—			—		—

Total indebtedness, gross	US$			91,941			77,551			78,482			—		78,482

Stockholders’ equity		R$		707,540			807,031			850,024			—		850,024

Net operating revenues		R$		310,773			299,390			185,313			—		795,476
Cost of products		R$		(181,193	)		(149,742	)		(110,647	)		—		(441,582	)
Other expenses		R$		(23,126	)		(25,051	)		(26,023	)		—		(74,200	)
Depreciation, amortization and depletion		R$		24,643			25,542			17,353			—		67,538

EBITDA		R$		131,097			150,139			65,996			—		347,232
Depreciation, amortization and depletion		R$		(24,643	)		(25,542	)		(17,353	)		—		(67,538	)

EBIT		R$		106,454			124,597			48,643			—		279,694
Impairment		R$		—			—			792			—		792
Result of equity investments		R$		3,830			8,770			12,132			—		24,732
Net financial result		R$		(8,537	)		6,786			4,942			—		3,191

Income before income tax and social contribution		R$		101,747			140,153			66,509			—		308,409
Income tax and social contribution		R$		(12,869	)		(28,646	)		(23,515	)		—		(65,030	)

Net income		R$		88,878			111,507			42,994			—		243,379

[Additional columns below]

[Continued from above table, first column(s) repeated]


			2002

Information			1Q			2Q			3Q			4Q			Total

Quantity sold - external market - iron ore	MT (thousand)			2,020			2,713			2,769			2,142			9,644
Quantity sold - internal market - iron ore	MT (thousand)			512			832			1,594			1,146			4,084

Quantity sold - total - iron ore	MT (thousand)			2,532			3,545			4,363			3,288			13,728

Quantity sold - external market - pellets	MT (thousand)			448			736			554			645			2,383
Quantity sold - internal market - pellets	MT (thousand)			277			498			703			697			2,175

Quantity sold - total - pellets	MT (thousand)			725			1,234			1,257			1,342			4,558

Average sales price - external market - iron ore	US$			16.53			17.32			16.38			16.56			16.76
Average sales price - internal market - iron ore	US$			3.71			6.20			6.47			5.42			6.02
Average sales price - total - iron ore	US$			14.59			14.70			12.66			12.68			13.46
Average sales price - external market - pellets	US$			28.08			29.68			26.78			28.73			28.45
Average sales price - internal market - pellets	US$			19.02			23.15			23.38			19.73			21.60
Average sales price - total - pellets	US$			26.63			27.05			24.88			24.06			25.18
Long-term indebtedness, gross	US$			94,359			88,367			74,490			82,375			82,375
Short-term indebtedness, gross	US$			55,244			58,473			51,922			22,815			22,815

Total indebtedness, gross	US$			149,603			146,840			126,412			105,190			105,190

Stockholders’ equity		R$		215,058			544,020			568,381			618,663			618,663

Net operating revenues		R$		126,852			195,290			302,477			293,099			917,718
Cost of products		R$		(70,019	)		(127,765	)		(186,549	)		(140,851	)		(525,184	)
Other expenses		R$		(12,697	)		(28,951	)		(14,889	)		(99,739	)		(156,276	)
Depreciation, amortization and depletion		R$		7,273			24,542			23,173			23,896			78,884

EBITDA		R$		51,409			63,116			124,212			76,405			315,142
Depreciation, amortization and depletion		R$		(7,273	)		(24,542	)		(23,173	)		(23,896	)		(78,884	)

EBIT		R$		44,136			38,574			101,039			52,509			236,258
Impairment		R$		—			—			—			—			—
Result of equity investments		R$		9			(28,710	)		(20,327	)		21,852			(27,176	)
Net financial result		R$		(4,575	)		(44,260	)		(59,169	)		6,631			(101,373	)

Income before income tax and social contribution		R$		39,570			(34,396	)		21,543			80,992			107,709
Income tax and social contribution		R$		(10,519	)		24,344			2,818			(30,710	)		(14,067	)

Net income		R$		29,051			(10,052	)		24,361			50,282			93,642

The Company was incorporated on 08/29/03.


CVRD		43

8.13- Manganese and Ferroalloys Area - SIBRA (Adjusted and Not Reviewed)


			2003

Information			1Q			2Q			3Q			4Q		Total

Quantity sold - external market - ferroalloys	MT (thousand)			30			40			47			—		117
Quantity sold - internal market - ferroalloys	MT (thousand)			37			38			43			—		118

Quantity sold - total	MT (thousand)			67			78			90			—		235

Quantity sold - external market - manganese	MT (thousand)			147			306			261			—		714
Quantity sold - internal market - manganese	MT (thousand)			94			76			83			—		253

Quantity sold - total	MT (thousand)			241			382			344			—		967

Average sales price - external market - ferroalloys	US$			573.88			549.79			534.97			—		550.01
Average sales price - internal market - ferroalloys	US$			505.02			664.75			607.37			—		593.76
Average sales price - total	US$			536.68			606.47			569.57			—		572.44
Average sales price - external market - manganese	US$			46.71			42.17			43.96			—		43.76
Average sales price - internal market - manganese	US$			36.35			46.00			50.48			—		43.88
Average sales price - total	US$			42.65			42.93			45.52			—		43.78
Long-term indebtedness, gross	US$			19,812			38,962			39,371			—		39,371
Short-term indebtedness, gross	US$			36,783			24,688			18,237			—		18,237

Total indebtedness, gross	US$			56,595			63,650			57,608			—		57,608

Stockholders’ equity		R$		310,314			336,058			365,275			—		365,275

Net operating revenues		R$		142,185			171,284			177,162			—		490,631
Cost of products		R$		(83,873	)		(93,166	)		(111,927	)		—		(288,966	)
Other expenses/revenues		R$		(22,569	)		(27,377	)		(28,233	)		—		(78,179	)
Depreciation, amortization and depletion		R$		5,456			6,238			5,852			—		17,546

EBITDA		R$		41,199			56,979			42,854			—		141,032
Depreciation, amortization and depletion		R$		(5,456	)		(6,238	)		(5,852	)		—		(17,546	)

EBIT		R$		35,743			50,741			37,002			—		123,486
Impairment		R$		—			—			366			—		366
Net financial result		R$		(11,168	)		(18,623	)		(6,388	)		—		(36,179	)

Income before income tax and social contribution		R$		24,575			32,118			30,980			—		87,673
Income tax and social contribution		R$		(6,255	)		(7,496	)		(1,763	)		—		(15,514	)

Net income		R$		18,320			24,622			29,217			—		72,159

[Additional columns below]

[Continued from above table, first column(s) repeated]


			2002

Information			1Q			2Q			3Q			4Q			Total

Quantity sold - external market - ferroalloys	MT (thousand)			23			39			63			35			160
Quantity sold - internal market - ferroalloys	MT (thousand)			37			39			41			50			167

Quantity sold - total	MT (thousand)			60			78			104			85			327

Quantity sold - external market - manganese	MT (thousand)			243			212			181			192			828
Quantity sold - internal market - manganese	MT (thousand)			15			35			58			90			198

Quantity sold - total	MT (thousand)			258			247			239			282			1,026

Average sales price - external market - ferroalloys	US$			525.00			384.64			483.67			548.54			479.65
Average sales price - internal market - ferroalloys	US$			519.19			506.79			379.56			339.76			428.31
Average sales price - total	US$			521.43			445.72			442.63			425.73			453.43
Average sales price - external market - manganese	US$			52.49			44.38			44.91			46.96			46.96
Average sales price - internal market - manganese	US$			68.27			58.11			50.97			46.47			46.47
Average sales price - total	US$			53.40			46.32			46.38			45.86			46.86
Long-term indebtedness, gross	US$			21,121			17,749			19,990			22,055			22,055
Short-term indebtedness, gross	US$			29,918			28,084			25,351			35,605			35,605

Total indebtedness, gross	US$			51,039			45,833			45,341			57,660			57,660

Stockholders’ equity		R$		245,150			261,854			306,541			293,116			293,116

Net operating revenues		R$		95,931			105,626			168,108			152,924			522,589
Cost of products		R$		(50,659	)		(69,335	)		(101,297	)		(85,843	)		(307,134	)
Other expenses/revenues		R$		(8,814	)		(5,900	)		(17,956	)		(56,322	)		(88,992	)
Depreciation, amortization and depletion		R$		3,297			3,434			4,503			3,712			14,946

EBITDA		R$		39,755			33,825			53,358			14,471			141,409
Depreciation, amortization and depletion		R$		(3,297	)		(3,434	)		(4,503	)		(3,712	)		(14,946	)

EBIT		R$		36,458			30,391			48,855			10,759			126,463
Impairment		R$		—			—			—			—			—
Net financial result		R$		(720	)		(4,131	)		13,412			(34,107	)		(25,546	)

Income before income tax and social contribution		R$		35,738			26,260			62,267			(23,348	)		100,917
Income tax and social contribution		R$		(2,177	)		(4,332	)		(16,111	)		3,265			(19,355	)

Net income		R$		33,561			21,928			46,156			(20,083	)		81,562


44		CVRD

8.14- Manganese and Ferroalloys Area - URUCUM (Adjusted and Not Reviewed)


			2003

Information			1Q			2Q			3Q			4Q		Total

Quantity sold - external market - iron ore	MT (thousand)			238			174			214					626
Quantity sold - internal market - iron ore	MT (thousand)			7			—			3					10

Quantity sold - total	MT (thousand)			245			174			217			—		636

Quantity sold - external market - manganese	MT (thousand)			18			43			52					113
Quantity sold - internal market - manganese	MT (thousand)			46			66			55					167

Quantity sold - total	MT (thousand)			64			109			107			—		280

Quantity sold - external market - ferroalloys	MT (thousand)			5			3			8					16
Quantity sold - internal market - ferroalloys	MT (thousand)			—			—			—					—

Quantity sold - total	MT (thousand)			5			3			8			—		16

Average sales price - external market - iron ore	US$			13.70			15.03			15.86					14.81
Average sales price - internal market - iron ore	US$			3.26			—			2.21					2.95
Average sales price - total	US$			13.43			15.03			15.67					14.63
Average sales price - external market - manganese	US$			36.35			35.81			38.95					37.34
Average sales price - internal market - manganese	US$			32.91			38.10			42.22					38.03
Average sales price - total	US$			33.87			37.18			40.66					37.75
Average sales price - external market - ferroalloys	US$			509.35			503.55			483.38					495.28
Average sales price - internal market - ferroalloys	US$			—			—			—					—
Average sales price - total	US$			509.35			503.55			483.38					495.28
Long-term indebtedness, gross	US$			—			—			—					—
Short-term indebtedness, gross	US$			—			5			5					5

Total indebtedness, gross	US$			—			5			5			—		5

Stockholders’ equity		R$		75,737			47,460			52,546					52,546

Net operating revenues		R$		26,947			23,028			31,498					81,473
Cost of products		R$		(11,440	)		(9,866	)		(17,699	)				(39,005	)
Other expenses/revenues		R$		(4,761	)		1,341			(4,595	)				(8,015	)
Depreciation, amortization and depletion		R$		589			615			608					1,812

EBITDA		R$		11,335			15,118			9,812			—		36,265
Depreciation, amortization and depletion		R$		(589	)		(615	)		(608	)		—		(1,812	)

EBIT		R$		10,746			14,503			9,204			—		34,453
Impairment		R$		9			—			—					9
Result of equity investments		R$		—			—			—					—
Net financial result		R$		(1,000	)		(7,349	)		310					(8,039	)

Income before income tax and social contribution		R$		9, 755			7,154			9,514			—		26,423
Income tax and social contribution		R$		(2,862	)		(395	)		(4,428	)				(7,685	)

Net income		R$		6, 893			6,759			5,086			—		18,738

[Additional columns below]

[Continued from above table, first column(s) repeated]


			2002

Information			1Q			2Q			3Q			4Q			Total

Quantity sold - external market - iron ore	MT (thousand)			220			226			197			118			761
Quantity sold - internal market - iron ore	MT (thousand)			13			5			1			2			21

Quantity sold - total	MT (thousand)			233			231			198			120			782

Quantity sold - external market - manganese	MT (thousand)			4			37			25			25			91
Quantity sold - internal market - manganese	MT (thousand)			87			45			53			74			259

Quantity sold - total	MT (thousand)			91			82			78			99			350

Quantity sold - external market - ferroalloys	MT (thousand)			3			6			3			4			16
Quantity sold - internal market - ferroalloys	MT (thousand)			—			1			—			—			1

Quantity sold - total	MT (thousand)			3			7			3			4			17

Average sales price - external market - iron ore	US$			13.92			15.11			14.36			13.77			14.36
Average sales price - internal market - iron ore	US$			4.26			4.21			4.13			3.10			4.11
Average sales price - total	US$			13.38			14.88			14.31			13.56			14.09
Average sales price - external market - manganese	US$			41.06			36.58			46.16			46.54			42.13
Average sales price - internal market - manganese	US$			47.20			47.42			38.15			32.36			41.19
Average sales price - total	US$			47.00			42.52			40.76			35.89			41.43
Average sales price - external market - ferroalloys	US$			456.32			457.11			452.09			485.44			462.15
Average sales price - internal market - ferroalloys	US$			—			232.48			—			—			232.48
Average sales price - total	US$			456.32			445.98			452.09			485.44			457.60
Long-term indebtedness, gross	US$			—			—			—			—			—
Short-term indebtedness, gross	US$			—			—			—			—			—

Total indebtedness, gross	US$			—			—			—			—			—

Stockholders’ equity		R$		52,820			65,090			70,302			68,844			68,844

Net operating revenues		R$		18,714			24,363			21,207			23,643			87,927
Cost of products		R$		(9,226	)		(9,529	)		(8,942	)		(9,463	)		(37,160	)
Other expenses/revenues		R$		2			(3,453	)		(1,340	)		(8,301	)		(13,092	)
Depreciation, amortization and depletion		R$		874			928			885			477			3,164

EBITDA		R$		10,364			12,309			11,810			6,356			40,839
Depreciation, amortization and depletion		R$		(874	)		(928	)		(885	)		(477	)		(3,164	)

EBIT		R$		9,490			11,381			10,925			5,879			37,675
Impairment		R$		—			—			—			(5,128	)		(5,128	)
Result of equity investments		R$		—			—			—			1			1
Net financial result		R$		(190	)		2,465			4,547			(3,809	)		3,013

Income before income tax and social contribution		R$		9,300			13,846			15,472			(3,057	)		35,561
Income tax and social contribution		R$		(615	)		(1,576	)		(10,260	)		(48	)		(12,499	)

Net income		R$		8,685			12,270			5,212			(3,105	)		23,062


	CVRD	45

8.15- Steel Area - CST (Adjusted and Not Reviewed)


			2003

Information			1Q			2Q			3Q			4Q		Total

Quantity sold - external market	ton (mil)			1,013			964			902					2,879
Quantity sold - internal market	ton (mil)			2			1			2					5

Quantity sold - total	ton (mil)			1,015			965			904			—		2,884

Average sales price - external market	US$			229.78			238.69			244.16					237.27
Average sales price - internal market	US$			219.12			255.89			253.93					240.40
Average sales price - total	US$			229.76			238.71			244.18					237.27
Long-term indebtedness, gross	US$			640,534			652,708			634,857					634,857
Short-term indebtedness, gross	US$			157,495			137,815			159,870					159,870

Total indebtedness, gross	US$			798,029			790,523			794,727			—		794,727

Stockholders’ equity		R$		3,200,123			3,223,207			3,416,321					3,416,321

Net operating revenues		R$		993,201			921,094			951,473					2,865,768
Cost of products		R$		(601,278	)		(605,411	)		(573,126	)				(1,779,815	)
Other expenses/revenues		R$		(47,909	)		(57,680	)		(62,704	)				(168,293	)
Depreciation, amortization and depletion		R$		65,293			81,454			71,327					218,074

*EBITDA ()**		R$		409,307			339,457			386,970			—		1,135,734
Depreciation, amortization and depletion		R$		(65,293	)		(81,454	)		(71,327	)		—		(218,074	)

EBIT		R$		344,014			258,003			315,643			—		917,660
Result participations		R$		(3,209	)		(22,617	)		(3,908	)				(29,734	)
Non operating revenues/expenses (*)		R$		26			(30	)		12					8
Net financial result		R$		52,996			163,983			(59,830	)				157,149

Income before income tax and social contribution		R$		393,827			399,339			251,917			—		1,045,083
Income tax and social contribution		R$		(107,450	)		(66,745	)		(58,804	)				(232,999	)

Net income		R$		286,377			332,594			193,113			—		812,084

[Additional columns below]

[Continued from above table, first column(s) repeated]


			2002

Information			1Q			2Q			3Q			4Q			Total

Quantity sold - external market	ton (mil)			1,127			1,309			1,098			1,102			4,636
Quantity sold - internal market	ton (mil)			9			2			2			2			15

Quantity sold - total	ton (mil)			1,136			1,311			1,100			1,104			4,651

Average sales price - external market	US$			154.22			169.23			216.45			233.71			192.09
Average sales price - internal market	US$			154.76			149.24			155.97			152.51			153.89
Average sales price - total	US$			154.22			169.20			216.34			233.56			191.97
Long-term indebtedness, gross	US$			494,013			671,740			617,171			615,992			615,992
Short-term indebtedness, gross	US$			284,366			262,107			220,422			244,832			244,832

Total indebtedness, gross	US$			778,379			933,847			837,593			860,824			860,824

Stockholders’ equity		R$		2,845,130			2,715,085			2,619,718			2,914,037			2,914,037

Net operating revenues		R$		439,728			582,168			801,704			1,017,330			2,840,930
Cost of products		R$		(411,413	)		(485,968	)		(451,859	)		(547,531	)		(1,896,771	)
Other expenses/revenues		R$		(32,925	)		(43,876	)		(41,790	)		(38,707	)		(157,298	)
Depreciation, amortization and depletion		R$		68,063			83,829			61,305			64,336			277,533

*EBITDA ()**		R$		63,453			136,153			369,360			495,428			1,064,394
Depreciation, amortization and depletion		R$		(68,063	)		(83,829	)		(61,305	)		(64,336	)		(277,533	)

EBIT		R$		(4,610	)		52,324			308,055			431,092			786,861
Result participations		R$		—			(6,212	)		(2,857	)		(29,654	)		(38,723	)
Non operating revenues/expenses (*)		R$		(497	)		376			(118	)		1,845			1,606
Net financial result		R$		(16,691	)		(248,289	)		(447,699	)		127,140			(585,539	)

Income before income tax and social contribution		R$		(21,798	)		(201,801	)		(142,619	)		530,423			164,205
Income tax and social contribution		R$		10,556			72,358			95,956			(139,541	)		39,329

Net income		R$		(11,242	)		(129,443	)		(46,663	)		390,882			203,534

(*) Refers basically to asset retirement


46	CVRD

8.16- Steel Area - CSI (Adjusted and Not Reviewed)


			2003

Information			1Q			2Q			3Q			4Q		Total

Quantity sold - external market	ton (mil)			442			447			507					1,396

Quantity sold - total	ton (mil)			442			447			507			—		1,396

Average sales price - external market	US$			445.80			401.96			374.08					405.72
Average sales price - total	US$			445.80			401.96			374.08					405.72

Stockholders’ equity		R$		826,600			708,060			694,907					694,907

Net operating revenues		R$		666,694			521,481			558,998					1,747,173
Cost of products		R$		(626,550	)		(514,579	)		(571,115	)				(1,712,244	)
Other expenses/revenues		R$		—			833			56					889
Depreciation, amortization and depletion		R$		23,582			21,974			20,604					66,160

EBITDA		R$		63,726			29,709			8,543			—		101,978
Depreciation, amortization and depletion		R$		(23,582	)		(21,974	)		(20,604	)				(66,160	)

EBIT		R$		40,144			7,735			(12,061	)		—		35,818
Result of equity investments		R$		1,113			1,218			1,260					3,591
Non operating resulting		R$		—			—			—					—
Gain/loss in translation currency		R$		—			(2,581	)		277					(2,304	)
Net financial result		R$		(11,424	)		(9,452	)		(9,402	)				(30,278	)

Income before income tax and social contribution		R$		29,833			(3,080	)		(19,926	)		—		6,827
Income tax and social contribution		R$		(11,843	)		549			8,642					(2,652	)

Net income		R$		17,990			(2,531	)		(11,284	)		—		4,175

[Additional columns below]

[Continued from above table, first column(s) repeated]


			2002

Information			1Q			2Q			3Q			4Q			Total

Quantity sold - external market	ton (mil)			475			537			508			932			2,452

Quantity sold - total	ton (mil)			475			537			508			932			2,452

Average sales price - external market	US$			328.65			384.64			382.38			428.79			390.11
Average sales price - total	US$			328.65			384.64			382.38			428.79			390.11

Stockholders’ equity		R$		539,122			659,955			924,159			873,247			873,247

Net operating revenues		R$		365,995			536,323			762,668			750,745			2,415,731
Cost of products		R$		(351,219	)		(470,600	)		(649,603	)		(654,130	)		(2,125,552	)
Other expenses/revenues		R$		936			119			58			314			1,427
Depreciation, amortization and depletion		R$		17,118			20,858			28,035			24,479			90,490

EBITDA		R$		32,830			86,700			141,158			121,408			382,096
Depreciation, amortization and depletion		R$		(17,118	)		(20,858	)		(28,035	)		(24,479	)		(90,490	)

EBIT		R$		15,712			65,842			113,123			96,929			291,606
Result of equity investments		R$		(1,118	)		(1,320	)		495			2,777			834
Non operating resulting		R$		(1	)		—			—			—			(1	)
Gain/loss in translation currency		R$		—			949			13,913			(9,084	)		5,778
Net financial result		R$		(8,212	)		(10,248	)		(36,297	)		(41,552	)		(96,309	)

Income before income tax and social contribution		R$		6,381			55,223			91,234			49,070			201,908
Income tax and social contribution		R$		(2,149	)		(21,785	)		(31,062	)		(23,256	)		(78,252	)

Net income		R$		4,232			33,438			60,172			25,814			123,656


	CVRD	47

9- REPORT OF THE INDEPENDENT ACCOUNTANTS

(A free translation of the original opinion in Portuguese expressed on quarterly information prepared in accordance with the accounting principles prescribed by Brazilian Corporate Law)

To the Board of Directors and Stockholders
Companhia Vale do Rio Doce

1		We have carried out limited reviews of the Quarterly Information (ITR) of Companhia Vale do Rio Doce for the quarters and nine-month periods ended September 30 and June 30, 2003 and September 30, 2002. This information is the responsibility of Company management.

2		Except as mentioned in paragraph three, our reviews were carried out in conformity with specific standards established by the Institute of Independent Auditors of Brazil (IBRACON), in conjunction with the Federal Accounting Council (CFC), and mainly comprised: (a) inquiries of and discussions with management responsible for the accounting, financial and operating areas of the Company with regard to the main criteria adopted for preparation of the Quarterly Information (ITR) and (b) a review of the significant information and of the subsequent events which have, or could have, significant effects on the Company’s financial position and operations.

3		The financial statements at September 30, 2003 and 2002, of some subsidiary, jointly-owned and associated companies, in which there are relevant investments, have not been reviewed by independent accountants. Accordingly, the conclusions resulting from our reviews do not cover the amounts of R$ 5,589,052 thousand (2002 - R$ 7,177,881 thousand) of these investments and R$ 727,855 thousand (2002 - R$ 1.911,515 thousand) of the income produced by them for the quarters then ended.

4		Based on our limited reviews, except for the effects of any adjustments which might have been required if the financial statements of the subsidiary, jointly-owned and associated companies mentioned in paragraph 3 had been reviewed by independent accountants, we are not aware of any material modifications that should be made to the Quarterly Information (ITR) referred to above in order that such information be stated in conformity with the accounting practices adopted in Brazil applicable to the preparation of Quarterly Information (ITR), consistent with the Brazilian Securities Commission (CVM) regulations.

5		Our limited reviews were conducted for the purpose of issuing our report on the Quarterly Information (ITR) referred to in paragraph 1, taken as a whole. The statement of cash flow is presented as additional information, and is not a required part of the quarterly report. Such information has been subjected to the auditing procedures described in paragraph 2 and we are not aware of any material adjustments that should be made to this statement for it to be adequately presented in relation to the Quarterly Information (ITR).


	Rio de Janeiro, November 7, 2003

	PricewaterhouseCoopers Auditores Independentes CRC-SP-000160/O-5 “F” RJ

	Otavio Cassou Maia Partner Accountant CRC-SP-158.611/O-8-S-RJ		Ronaldo Matos Valiño Director Accountant CRC-RJ-069.958/O


48	CVRD

10- BOARD OF DIRECTORS, FISCAL COUNCIL, ADVISORY COMMITTEES AND EXECUTIVE OFFICERS

BOARD OF DIRECTORS

Sérgio Ricardo Silva Rosa
Chairman

Mário da SilveiraTeixeira Júnior

Arlindo Magno de Oliveira

Cláudio Bernardo Guimarães de Moraes

Erik Persson

Francisco Valadares Póvoa

Katsuto Momii

Luiz Alexandre Bandeira de Mello

Oscar Augusto de Camargo Filho

Renato da Cruz Gomes

Ricardo Carvalho Giambroni

ADVISORY COMMITTEES OF THE BOARD OF DIRECTORS

Auditing Committee
Antonio José de Figueiredo Ferreira
Marcos Fábio Coutinho
Ricardo Wiering de Barros

Executive Development Committee
Arlindo Magno de Oliveira
Francisco Valadares Póvoa
João Moisés de Oliveira
Olga Loffredi

Strategic Committee
Roger Agnelli
Gabriel Stoliar
Cézar Manoel de Medeiros
José Roberto Mendonça de Barros
Samir Zraick

Finance Committee
Roger Agnelli
Fábio de Oliveira Barbosa
Luiz Carlos Siqueira Aguiar
Rômulo de Mello Dias

Governance and Ethics Committee
Renato da Cruz Gomes
Ricardo Simonsen
Ricardo Carvalho Giambroni

FISCAL COUNCIL

Joaquim Vieira Ferreira Levy

Luiz Octávio Nunes West

Pedro Carlos de Mello

Vicente Barcelos

Wilson Risolia Rodrigues

EXECUTIVE OFFICERS

Roger Agnelli
Chief Executive Officer

Antonio Miguel Marques
Executive Officer for Equity Holdings and Business Development

Armando de Oliveira Santos Neto
Executive Officer for Ferrous Minerals

Carla Grasso
Executive Officer for Human Resources and Corporate Services

Diego Cristobal Hernández Cabrera
Executive Officer for Non-Ferrous Minerals

Fábio de Oliveira Barbosa
Chief Financial Officer

Gabriel Stoliar
Executive Officer for Planning

Guilherme Rodolfo Laager
Executive Officer for Logistics


Eduardo de Carvalho Duarte Chief Accountant CRC-RJ 57439		Otto de Souza Marques Junior Head of Control Department


	CVRD	49

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.


Date: November 14, 2003	COMPANHIA VALE DO RIO DOCE (Registrant)

	By:	/s/ Fabio de Oliveira Barbosa

		Fabio de Oliveira Barbosa Chief Financial Officer