CHILE – Masisa reported that for the first quarter of 2017 the profits attributable to the owners of the parent totaled USD 1.6 million, which represent a drop of USD 3.6 million (-68%). 

This result is mainly caused by the effects of recession and currency devaluation in Venezuela, lower income in Chile, the once-off effect of profit generated in the partial repurchase process of the international bonds in 2016, and by the economic downtrend in Argentina resulting from the short-term impact of measures implemented by the government. These effects were partially offset by better results in Mexico, up USD 4.1 million.

Consolidated revenue as of March 31, 2017 amounted to USD 225.7 million, an increase of USD 12.3 million (+5.8%), mainly due to an upward trend in demand in all countries, leading to price increases and greater board volumes, especially in Brazil, and MDF moldings in the United States. Consolidated EBITDA reached USD 36.9 million, representing a 3.6% increase mainly due to an increase in the recurring EBITDA and a forest stumpage sale in Chile.

Noteworthy events this quarter include the higher EBITDA in Mexico due to higher board prices and higher margins for the new MDF plant, better performance in both Brazil, due to the recovery of the board market, and the Andean region, as a result of a better performance of local and export markets. These effects were partially offset by a lower forestry EBITDA in Brazil resulting from the company’s forest sales in 2016, as well as a decrease in Argentina due to the persistence of the economic adjustment process.

Masisa Results January-March 1Q

USD millions