CHILE – Arauco, a world leader in the production composite wood panels, reported a very favorable third quarter against exchange rate uncertainty in some of its most important Latin American markets. These results are in line with the positive development of its businesses in the first nine months of 2018.

During the third quarter of 2018 sales revenues for the Chilean company reached USD 1,553.3 million, a 11.5% or USD 159.9 million increase compared to the third quarter of 2017 (USD 1,393.4 million). Adjusted EBITDA reached USD 524.9 million, a 36.4% or USD 140.2 million increase compared to the third quarter of 2017.

Net income reached USD 220.7 million, a 48.7% or USD 72.3 million increase compared to the third quarter of 2017.

The Latin American wooden panel market maintained stable levels of demand in the 3Q-2018 and sales kept growing along the Pacific Coast with positive perspectives for the next months. During the quarter, Brazil was affected by different events: Brazilian real devaluation, logistic restrictions and the increase in freight costs, which limited the exports. Nevertheless, local market kept growing and there is a good economic sentiment after the results of the presidential elections. On the other hand, Argentina was affected by the Argentinean peso devaluation. Taken together with economic difficulties, the result was a lower local consumption and higher levels of exports.

In the third quarter, sales in the United States and Canada were steady and Arauco expects to increase sales for the coming months, due to seasonality. In Mexico the exchange rate fluctuated highly and, as a result, there was a wide difference between the imported and local product prices during the first part of the third quarter.