CHILE - Net income for Arauco, one of the world’s largest forestry companies, reached USD 126.1 million in 1Q-2019, a 36.2% or USD 71.6 million decrease compared to the first quarter of 2018.

Sales revenues totaled USD 1,388.2 million during the first quarter (1Q) of 2019, a 5.2% drop compared to 1Q-2018 (USD 1,464.7) while adjusted EBITDA reached USD 354.9 million, a 22.3% or USD 102.1 million decrease compared to the 1Q-2018.

As it was expected for the 1Q-2019, sales of pulp and wood products were influenced by some residual uncertainty surrounding the trade war between China and the US. However, a slight increase was seen in demand of particleboard and remanufactured wood products in the Northern Hemisphere, resulting from positive seasonal effects.

Composite panel sales decreased slightly compared to the previous quarter, with sales volume falling by 1.3% (including both MDF and PBO products) and average prices increasing by 1.6% compared to the fourth quarter of 2018.

The Latin-American market showed healthy demand levels during the first quarter of 2019, particularly in MDF consumption, highlighting countries such as Peru and Colombia. In Brazil, the year started lower than expected with higher MDF supply and with a slowed down economy affecting negatively the demand. In Argentina, demand stopped declining, but prices in dollars remained low due to the uncertainty that affects the economy and therefore the local currency. In the United States and Canada, sales showed an increase compared to the last quarter.