BRASIL – Duratex reported profit of BRR 359 million for FY2014, a 36.1% drop compared to previous year results (FY2013: BRR 561,6 million).
The engineered wood and sanitary ware manufacturer described 2014 as a year characterized by events that exercised a negative influence on the business environment. Specifically the soccer world cup that disrupted sale dynamics; a presidential election and its repercussion on the economic agents’ expectations, high inflation and near zero GDP growth. As a whole and according to data released by the Brazilian Tree Industry (IBA – http://www.iba.org/), the wood panel segment experienced a YoY drop in shipment volume in the domestic market of 2 %. By segment, MDF panels showed a better performance, with a 3 % increase in shipment volume in the domestic market, while the MDP panel segment, over the same period, experienced a retraction of 8 %. Considering this deterioration of the economic scenario, Duratex decided to revise an investment of approximately R$1.3 billion for the construction of two new panel plants in Minas Gerais. As of now, the Company believes that it has sufficient capacity to meet short-term demand.
For the 4Q-2014 profit reached BRR 85.7 million, a drop of 27.4% compared to 4Q-2013 results. Sales for the Wood Division, which represented for Duratex 70.3% of total revenue, was up 8.3% as it reached BRR 731,7 million compared to BRR 675.4 million in 4Q-2013. This growth is mainly due to a 225.7% increase in exports, totaling BRR 95.1 million. Board Shipments in the 4Q-2014 reached 744,254 cubic meters of which 43.3% were laminated boards.
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