CHILE – Arauco’s consolidated 4Q-2015 sales were 12.8% lower against the same quarter of last year, mainly explained by 23.3% decrease in the sawn timber business, a 12.0% drop in panels and an 8.5% decrease in the pulp businesses.

Revenues for the fourth quarter of 2015 reached USD 1,206.8 million, compared to the USD 1,384.3 million obtained in the fourth quarter of 2014.

For FY 2015, sales of the panel segment experienced a 2.4% decline against FY 2014. This is due to two principal factors: the continuous deceleration of MDF demand in the Brazilian market, and a higher supply of plywood from Chile and Brazil which has started to compete in Arauco’s traditional markets, thus decreasing prices.

MDP sales from the company’s Teno Mill have risen throughout 2015, explained by more demand as well as a better sales mix. In North America particleboard sales kept strengthening during 2015 as demand remained stable thanks to Arauco’s value added products. The MDF market has been slower in North America, due to lower demand and more competition from Canadian and Brazilian producers that have taken advantage of their currency depreciation to export more of their products. This effect has translated in lower price for MDF panels and moldings.

Arauco Results October – December 4Q

Million USD