BRAZIL - Sales of Duratex, one of the largest regional manufacturers of wood panels, grew 5.4% to BRR 1,019.5 million, of which BRR 175.6 million came from the foreign markets, through exports and the operations of Duratex Colombia.

Revenues outside Brazil accounted for 17.2% of the total.

This result was positively impacted by the increase in volumes shipped in the two business divisions, Deca and Wood, resulting from greater demand in the domestic market, as well as the success in implementing and sustaining price increases in recent months. On the other hand, operations in Colombia presented a slight drop in the volumes shipped, due to a decrease of the local economy, negatively impacting the operations in that market.

Cost rationalization, productivity increase, discipline of the new commercial strategy and brand recognition measures, in alliance with more favorable market conditions, made the Adjusted and Recurrent EBITDA present a positive evolution in the period. The result obtained in 3Q17 was BRR 204.9 million, with a margin of 20.1%, above both comparison periods. In the year, consolidated Adjusted and recurrent EBITDA was BRR 531.1 million, with a margin of 18.4%.

The quarter’s results reflect the positive impact of cost cutting initiatives, price increases and a slightly improved demand and the combination of these factors boosted the volumes and profitability of the Wood Division. There was a better sales trend in domestic demand in all product lines, with more intensity in standard products. The volume in the quarter was 614.8 thousand m3 of panels, above both periods of comparison but as there was more concentration of sales of the standard lines, there was some deterioration of the product mix in the quarter.

Results July - September 3Q

Results January - September 9M