BRAZIL - Eucatex, one of the largest manufacturers of panels in Brazil, with operations also in the segments of paint and varnish, laminated flooring, partitions and doors, has reported growth rates of above the market average in practically all of its operating segments. The period was marked by sales growth across all product lines, which resulted in net revenue growing 17.5% to reach R$ 292.9 million.

The Company’s net income came to R$ 35.1 million, an increase of 45.1% over the same period the previous year. Net income in 9M13 totaled R$ 80.3 million, up 49% year on year. According to José Antonio Goulart de Carvalho, Executive Vice President and Investor Relations Officer, “the healthy performance is due both to the actions taken by management and the business scenario in the retail and construction sectors, which has driven the demand for our products.”EBITDA was R$ 60.7 million for the quarter, 22.9% higher than in the third quarter of 2012. Recurring EBITDA margin increased 0.9 p.p. to 20.7%.

By segment, the top performer was the wood division, with a net revenue increased of 17.6%, driven by the 6.4% growth in sales volume and the recovery in sale prices. Eucatex significantly outperformed the market, whose overall sales growth averaged 2.6%. Mr. Carvalho explains that the T-HDF/MDF line was the determining factor for this growth. While MDP sales registered moderate growth of around 2%, the T-HDF/MDF segment grew 35.3%, operating close to capacity. “A few improvements are still being implemented in this line to ramp up production in the coming quarters”, he added. In the wood segment, the growth in laminated flooring sales was 17.4%, showing the continued brisk pace of sales in this segment.