CHILE - Arauco, one of the largest forestry companies in the world, reported that sales revenue reached USD 1,387.2 million during the third quarter of 2019, a decrease of 10.5 percent compared to the same period of 2018 (3Q-2018: USD 1,549.9).

Adjusted EBITDA reached USD 238.2 million, a very sharp drop of 53.8 percent compared to the same period of 2018.

Net income (profit / loss) reached USD -29.6 million, a strong drop of 113.4 percent compared to the same period of 2018 (3Q-2018: USD 220.7 million). Mainly due to a decrease in average pulp prices of 19.0 percent, partially offset by an increase in the volume of pulp sales of 25.3 percent and a higher volume of sales of wood products by 6.8 percent.

During the third quarter, the Latin American wooden panel market remained stable showing a close fit between supply and demand, except in Brazil and Argentina. The Brazilian market didn’t show any significant improvement, mainly due to a weak economy and oversupply, particularly in MDF. In contrast, the Argentine market has been showing signs of improvement which have resulted in higher sales volume and better prices. Despite that, US$ denominated income has been affected by the depreciation of the Argentine Peso.

In US and Canada, sales have remained healthy, mainly due to a decrease in local supply and higher sales from the Grayling mill.