From the never-a-dull-moment world of Brazilian investments, we at The Motley Fool bring you ... a paper company. Please, let's not all crowd around at once -- there will be plenty of time to talk about AracruzCelulose (NYSE:ARA).

Right off the bat, Aracruz's earnings remind you of some of the complexities involved in international investing. Simply put, there is a considerable gap between the performance it reported by U.S. generally accepted accounting principles (GAAP) and that reported under Brazilian rules.

Under American rules, revenue was up 12%, EBITDA climbed 17%, operating income rose 19.5%, and pre-tax income was up 26%. Because of unfavorable comparable tax treatment, though, net income was down 36%.

By Brazilian rules, though, revenue was down 9% and EBITDA was down by 10%, but net income grew 283%.

Luckily, both American and Brazilian accountants agree that a ton of pulp is a ton of pulp no matter where in the world you are. Pulp production volume rose 7% in the second quarter, while pulp sales volume and paper sales volume increased 6% and 8%, respectively.

Unlike its American peers such as International Paper (NYSE:IP), Aracruz is actually in a pretty good competitive position. A leading producer of eucalyptus pulp, Aracruz is a player on the premium side of the market. What's more, the company appears to have a solid cost structure in place -- while pulp prices are averaging about $609 per ton, the company's production costs are about $244 per ton.

All the same, that doesn't make Aracruz a slam-dunk buy for Fools. Overseas investing is risky, and history suggests that investing in Brazilian companies is even riskier. What's more, while Aracruz has favorable costs relative to American producers, the impact of Asian production and pricing still can't be ignored.

With strong margins, a decent return on equity, and a reasonable dividend, Aracruz might be worth a look for investors who want a cyclical overseas play. Given the risks inherent in both cyclical investments and Brazilian companies, though, only risk-tolerant Fools should even think about this one.

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Fool contributor Stephen Simpson has no financial interest in any stocks mentioned.