CHILE – 2017 was a year of deep transition for the Chilean board manufacturer, Masisa.

In the period, the company recorded a negative one-off charge of USD 272.6 million, which implied closing the year with accounting losses of USD 245 million.

The one-off effects accounted for in 2017 are explained by the impairment of Venezuelan assets for -USD 153.6 million, (corresponding to 60% share), to cost of disinvestments made in Argentina, Brazil and Mexico for -USD 102.3 million; for restructuring expenses as a result of the company’s transformation for -USD 8.5 million net of tax; and for the prepaid debt costs of -USD 8.2 million net of taxes. With these effects, the gain (loss) attributable to the owners of the controller was a loss of USD 245.0 million. Without the one-time effects recognized in 2017, the profit attributable to the owners of the parent company (previously profit ) would be USD 27.6 million, which compares positively with USD 19.9 million in 2016.

In other performance indicators, Masisa sales reached USD 1,057.8 million in 2017 an increase of 10.2% compared to USD 958.9 million in 2016. Sales in the fourth quarter (4Q) were up 39% reaching USD 360.2 million (4Q-2016: USD 259.1 million).

In the industrial business, accumulated sales revenue reached USD 1,001.4 million, an increase of USD 137.2 million (+ 15.9%). This increase is mainly due to higher sales revenues in Venezuela as a result of inflation. Also there were higher revenues from board sales in Brazil (USD +14.4 million), higher sales revenue from sawed wood in export markets (USD +5.8 million), an increase in sales revenue in Mexico (USD +4.4 million), mainly of PB boards, higher sales of MDF boards in Chile (USD +6.5 million), higher income from the sale of MDF Moldings in the United States (USD +4.5 million) and an increase in revenue from the sale of boards in Peru (USD +3.8 million). This was partially offset by lower sales revenue in Argentina (USD -17.1 million) due to the sale of industrial assets in September 2017 and lower income from sales in Colombia (USD -6.2 million).

EBITDA in 2017 was USD 139 million down 13.7% compared to USD 161 million in 2016. In the 4Q EBITDA was USD 33.1 million, down 39% compared to USD 48.1 million in the 4Q-2016.