CHILE – The first quarter 2016 was a difficult time for the wood board industry in Latin America. The period was marked by an increasing economic downturn in several markets served by the Chilean company and significant devaluation of currencies in the region.

Most of the adverse impact occurred in Venezuela and Brazil, countries that are currently facing a recession. However, Masisa generated a significant amount of its results in Argentina, which was able to improve its economic outlook significantly as a result of measures taken by the new government.

Profits attributable to the owners of the parent totaled USD 5.2 million, which represents a drop of USD 5.0 million, mainly due to the drop in Venezuela (USD -6.1 million) resulting from the decision to apply the SIMADI exchange rate (B$USD 197.3) to replace the SICAD exchange rate (B$/USD 12.0), which had been applied through 1Q15. This change significantly affected the basis of comparison. Therefore, consolidated sales revenue as of March 31, 2016, reached USD 213.4 million, a decrease of USD 139.9 million (-39.6%) against same period last year. Gross profit reached USD 38.4 million, 53.0% less than the previous year, and consolidated EBITDA reached USD 35.6 million, a 35.0% decrease over the previous period.

Excluding Venezuela, consolidated sales revenue sales as of March 31, 2016, amounted to USD 190.7 million, a decrease of USD 33.5 million (-15.0%). Gross profit totaled USD 31.7 million, 28.7% less than the previous year. EBITDA registered USD 32.4 million, representing a 7.7% drop, primarily due to the effects of currency devaluation in Latin America, especially in Brazil. This was partially offset by reduced production costs and expenses.

Roberto Salas, President of Masisa, highlighted that “during the first quarter, the new Masisa MDF plant in Durango, Mexico, produced its first board. Investment in this facility totaled USD 123 million. This will enable us to consolidate our leadership position in this country”. Furthermore, he stated that during this period, as planned, the company completed 74% of the announced nonstrategic assets divestment plan, of a total USD 130 million, in line with the financial strengthening initiatives being implemented by Masisa.

Masisa Results January – March 1Q

Thousand USD – FOB