BRAZIL - In the third quarter of 2018 (3Q-2018) Eucatex reported wood division sales of BRL 244.2 million, a 9.4% increase compared to the same period of the previous year. This growth was mainly due to the performance of the export market and price increases.

Eucatex, one of the largest manufacturers of wood panels in Brazil, with operations also in the segments of paint and varnish, laminate flooring, and doors, reached in 3Q-2018 a recurring EBITDA of BRL 61.6 million, 11.0% more than in 3Q-2017.

The EBITDA margin also showed a positive performance as it stood at 19.2%, compared to 17.7% in the same period of the previous year. In contrast net profit in the period registered a sharp decrease, -72.2%, as it reached BRL 9.4 million, mainly affected by foreign exchange variations.

In 3Q-2018, investments totaled BRL 30.7 million, and were assigned to maintenance of the Company's industrial and forestry activities. By the end of 2018 the reduction in investment levels is expected to be in the order of 8.8% as compared to 2017, with a focus on forestry investments.

The most important news highlighted by Eucatex in its quarterly report is the exchange of assets with Duratex, increasing its hardboard production capacity. The assets include three production lines, of which two went into operation at the beginning of October and the third in the second half.

The new hardboard production capacity is expected to contribute to the increase in turnover in 4Q-2018.