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
January 2003
Valley of the Doce River Company
(Translation of Registrant's name into English)
Avenida Graca Aranha, No. 26
20005-900 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
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(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
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(If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b). 82- .)
This current report on Form 6-K is hereby incorporated by reference into the
Registration Statement on Form F-4 of Companhia Vale do Rio Doce and Vale
Overseas Limited, File No. 333-84696.
[COMPANHIA VALE DO RIO DOCE LOGO] Press Release
CVRD announces minimum dividend for 2003
Rio de Janeiro, January 30, 2003 - Companhia Vale do Rio Doce (NYSE: RIO) (CVRD)
informs that it will submit a proposal to the Company's Board of Directors to
distribute in 2003 a minimum dividend (dividends and/or interest on shareholders
equity) of US$ 400 million, equivalent to US$ 1.04 per share. This amount will
be paid in two equal installments, on April 30 and October 31, 2003,
respectively.
The dividend value, to be paid in Brazilian reais (BRL), will be calculated
based upon the BRL/US dollar exchange rate for the sale of USD (Ptax - option 5
code) as informed by the Central Bank of Brazil the day before the Board of
Directors meeting which will approve the distribution and respective payment of
dividends. CVRD's Board of Directors will consider the proposal at two separate
meetings scheduled for April 16 and October 15, 2003. The lag between the
decisions made by the Board of Directors and the beginning of payment to
shareholders are the minimum periods required for operational processing of
these transactions.
This announcement is in accordance with the Dividend Policy approved on November
13, 2002. There were three main reasons for this policy: (a) to eliminate
uncertainty regarding dividend payment dates; (b) to minimize currency
volatility risks; (c) to increase correlation between dividend payment and the
Company<180>s cash flow, which is much more stable than earnings. CVRD earnings
behavior is strongly influenced in the short term by the BRL/USD exchange rate
fluctuations.
The minimum amount of US$1.04 per share is associated with the lower free cash
flow projected for 2003, which, in turn, is affected by the increase of
approximately US$ 1 billion in budgeted capital expenditures relatively to last
year. As announced on January 22, 2003, the expected average return for such
investments significantly exceeds the cost of capital estimated for CVRD.
Consequently, a substantial growth is anticipated from future cash flows and
subsequent creation of value to shareholders.
The proposed US$ 400 million to be paid to shareholders is consistent with
maintenance of prudent levels of financial leverage and the optimization of its
financial management.
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For further information, please contact:
Roberto Castello Branco: roberto.castello.branco@cvrd.com.br +55-21-3814-4540
Andreia Reis: andreia.reis@cvrd.com.br +55-21-3814-4643
Barbara Geluda: barbara.geluda@cvrd.com.br +55-21-3814-4557
Daniela Tinoco: daniela.tinoco@cvrd.com.br +55-21-3814-4946
Eduardo Mello Franco: eduardo.mello.franco@cvrd.com.br +55-21-3814-9849
Rafael Azevedo: rafael.azevedo@cvrd.com.br +55-21-3814-4700
This press release may contain statements that express management's expectations
about future events or results rather than historical facts. These
forward-looking statements involve risks and uncertainties that could cause
actual results to differ materially from those projected in forward-looking
statements, and CVRD cannot give assurance that such statements will prove
correct. These risks and uncertainties include factors: relating to the
Brazilian economy and securities markets, which exhibit volatility and can be
adversely affected by developments in other countries; relating to the iron ore
business and its dependence on the global steel industry, which is cyclical in
nature; and relating to the highly competitive industries in which CVRD
operates. For additional information on factors that could cause CVRD's actual
results to differ from expectations reflected in forward-looking statements,
please see CVRD's reports filed with the Brazilian Comissao de Valores
Mobiliarios and the U.S. Securities and Exchange Commission.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
COMPANHIA VALE DO RIO DOCE
(Registrant)
Date: January 30, 2003
By: /s/ Fabio de Oliveira Barbosa
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Fabio de Oliveira Barbosa
Chief Financial Officer