CHILE - Arauco’s sales revenues reached USD 1,464.7 million during the first quarter of 2018 (1Q-2018), a 18.7% increase compared to the USD 1,233.7 million obtained in the 1Q-2017.

The wood products sales revenues in the 1Q-2018 reached USD 692.7 million an 11.0% increase compared to USD 624.3 in the 1Q-2017.

Arauco’s composite panel sales increased in the first quarter of 2018 compared to the previous quarter due to higher sales volume, slightly offset by a decrease in prices. Both PB and MDF, had higher sales volume in Arauco’s major markets of North and South America.

Sales in United States and Canada continued to show stable prices level and an increase in sales volume. Meanwhile in Mexico, sales volume decreased due to difficulties in transferring higher prices of MDF to customers. This scenario developed as the new Duraplay plant, one of Arauco’s main competitors in the country, maintained a constant supply, particularly in the north of the country.

Brazil started the year in good shape for Arauco, and the company expects good demand despite the new capacity that will enter the market in the second semester. This new capacity will come from three new plants (Asperbras, Floraplac and Placas do Brasil) and from the restart of one plant (Duratex). The market shows higher consumption rates that were reflected in stable sales but with better price levels. Arauco also reported stability in the Argentine market, and a higher demand in Chile that allowed for sales growth. The rest of Latin America kept their demand and improved in prices.

Regarding other indicators for the period, net profit reached USD 197.7 million in 1Q-2018, compared to a loss of USD 45.3 million obtained in the 1Q-2017.