BRAZIL – The net income of Duratex, the largest board manufacturer of South America, reached BRR 38.4 million, a 34.5% drop from BRR 58.6 million net income reached in Q2 2014.

This performance is explained largely by the sharp contraction in orders from the furniture industry and by the housing slump, registered in Brazil. Consequently volumes shipped by the company’s Wood Division showed a decrease in the period of 13% and of 8.9% in the Deca Division (sanitary ware).

In the Wood Division, the company reported that the start of the second quarter was marked by advanced purchases of customers anticipating price adjustment announced by the company and at the end of the period a “slowdown was experienced, especially in the furniture industry. This sharp decline in purchases of the furniture segment, mainly in volume furniture producers, strongly impacted sales.” However, Duratex reported that volumes to the retail segment, mainly custom furniture “performed better, with stable sales compared to the same period last year.”

Despite the decrease in the volume of boards in the period, net revenues in the Wood Division increased by 1.5% in the quarter to BRR 629 million, helped by higher prices.

 

Duratex Results April – June 2Q*

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Duratex Results January – June*

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