PORTUGAL – Sonae Industria, one of the leading wood panel manufacturers in the world, reported 2Q-14 results.

Consolidated turnover was 290 million Euros, 9% below the level of same period last year, mainly driven by the reduced industrial footprint resulting from the sale of the two French units and the closure of the Horn (Germany) particleboard operations. In addition, the devaluation of both the Canadian dollar and the South African rand continued to penalize the contribution from both operations to the consolidated turnover.

In terms of breakdown, the reduction in consolidated turnover resulted from a combination of reduced sales volumes (8% below the 2Q13) and lower average selling prices (-1% when compared to the 2Q13). When compared to previous quarter, consolidated turnover also decreased, by 3%, mainly impacted by the deconsolidation of the two French plants. Again, a negative evolution was experienced in terms of sales volumes (-5%), but positive developments occurred in terms of average selling price, which was up by approximately 1% in relation to the 1Q14.

After the significant increase in variable costs and particularly wood costs during 1Q14, the second quarter saw some improvement driven mainly by seasonality with the end of the winter period in Europe and North America, leading to a reduction in the moisture content of the wood intake in the plants. Consequently, the second quarter saw an improvement in average variable unitary costs.

Sonae has continued to implement further initiatives to reduce their fixed cost structure, achieving a reduction in total fixed costs in the semester by approximately 6% y.o.y. on a comparable basis.