CHILE - Masisa, one of the leading wood panel manufacturers in Latin America, recorded drops of 7.8% in sales and of 45.9% in profit as the second quarter of 2017 came to an end.

Sales revenue in the second quarter reached USD 206.1 million, a drop of USD 17.4 million (-7.8%) against the same period of 2016. Masisa attributed this difference to the sale of biological assets in Brazil during 2016 and the deep economic recession and the sharp devaluation in Venezuela.

In 2Q-2017, net income was USD 5.0 million, representing a 45.9% decrease compared to the same period of the previous year. The USD 4.2 million drop was mainly attributable to the one-time positive impact of the 2016 sale of all the company’s forestry plantations in Brazil, the strong devaluation in Argentina, and a reduction of forestry land as a result of stumpage sales in previous years and the loss of USD 3.6 million generated by the sale of the electric power cogeneration plant in Chile this year. On a positive note, the results in Mexico showed significant growth product of the new MDF plant.

Recurring EBITDA totaled USD 29.8 million, a 13.2% increase over the previous year, because of improvements in the industrial results in Brazil, Mexico and Chile.

On July 17, the Sale and Purchase Agreement was signed for the industrial business unit of subsidiary Masisa Argentina S.A. to EGGER Holzwerkstoffe GmbH for USD 155 million. The Board of Directors also approved the divestment of Masisa's industrial assets in Mexico and Brazil. Once these operations are finalized, the Company expects to receive more than USD 500 million. Funds from the sale will be used to reduce Masisa’s debt.

Results 2Q-2017 (April-June)