CHILE – Arauco reported a first quarter loss of USD 45.3 million, as a consequence of the large forest fires during the summer months in Chile. Total loss due to the forestry fire was estimated at USD 178.4 million. 

However, despite wood supply in Chile being less than under normal circumstances, production volumes were not affected this quarter. Adjusted EBITDA increased compared to same quarter 2016, with pulp prices leading a positive trend during the first part of 2017. Adjusted EBITDA margin also increased in comparison to 1Q – 2016, ending at 23.6%.

Composite panel markets showed improvement in sales volume and average prices compared to last quarter. Overall, MDF increased its sales volume by 3.7% and prices by 1.6%, while PB increased its sales volume by 4.3% and price by 1.3%.

In North America, sales volume surged thanks to MDF and PB sales. Prices fluctuated around the same levels as last quarter, slightly declining when compared to the same quarter of last year. The MDF moldings market remained stable throughout the quarter.

In Brazil, volumes continued pressured, especially PB, which declined 14% compared to the quarter before due to a more depressed industrial channel. Prices, however, rose steadily 4% in MDF and 5% for PB. Compared to the same quarter of last year, prices have risen for both MDF and PB approximately 30%, showing signs of recovery for the Brazilian market. In Argentina, despite increasing prices, sales volume declined. PB was the most affected, with prices increasing 2% but sales volume decreasing 14% Q-o-Q. Other Latin American markets lost dynamism during the quarter, evidenced by less overall sales in these markets.

Arauco Results January – March 1Q

Million USD