CHILE - Arauco sales revenues reached USD 1,207.3 million during the second quarter of 2016, an improvement compared with the USD 1,146.0 million in the previous quarter. The Company attributes this growth to an improvement in revenues from the pulp, wood products, and forestry businesses.
During the 2Q-2016, the wood products segment increased its participation of total sales as also did revenue from the energy sales segment, which increased 27.4% compared to the last quarter. In the pulp business, sales volume increased 4.6% but average prices decreased 2.7% compared to last quarter. In the wood products business, average prices increased 3.3% compared to last quarter, and sales volume increased 3.8%.
Adjusted EBITDA for the second quarter of 2016 was USD 283.4 million, 12.1% or USD 30.6 million higher than the USD 252.8 million reached during the previous quarter. Adjusted EBITDA for the second quarter of 2016 was lower by 17.5% or USD 60.0 million when compared with the USD 343.3 million reached in the same period of 2015.
In regards to the panels markets Arauco experienced an overall increase in sales volume during this quarter. In North America, the MDF market has been pressured as more supply has entered the market, although the temporary closing of a competitor’s mill due to fire has enabled the market to recover. Arauco North America even had to import MDF from Brazil, Argentina, and Chile in order to meet sales requirements. Demand for laminated flooring and particleboard have also lifted sales in the Northern hemisphere.
In Brazil, sales volume has improved in MDF, reaching a 7.8% growth in sales volume compared to the same quarter of last year. Counteracting this growth is the depreciation of the real, which affects the bottom line of Arauco’s exports in U.S. dollar terms from this country. Particleboard regained momentum during April and May, showing price improvements.
During the quarter panel sales in the Colombian market were affected by the lack of ground transportation due to a nation wide trucker strike. Despite less sales activity in the rest of Latin America, Arauco has been able to meet planned sales volume, and has even been able to increase prices in some countries.
Arauco Sales by Product April - June
USD millions
Source: Quarterly Report
Arauco Woodpanel Volume
April - June. Thousand m3
Source: Quarterly Report
