CHILE - Masisa, one of the leading manufacturers of value-added wooden panels (MDF and MDP / PB) in Chile, presented the results of the third quarter of 2019.

Consolidated sales revenue amounted to USD 98.2 million, which is equivalent to a decrease of USD 73.2 million compared to the third quarter of 2018, mainly due to lower sales in Mexico, due to the partial sale of industrial assets in that country, lower forest sales in Chile and Argentina, and the deconsolidation of the operation in Venezuela.

Consolidated EBITDA reached USD 9.0 million, which represented a decrease of USD 23.9 million compared to the third quarter of 2018, mainly explained by lower forest EBITDA in Chile, as a result of the decision not to make log sales as to not impair the process of selling forest assets that was announced in April 2019.

The net result reached USD 5.4 million, which represents a decrease of USD 49.6 million compared to the comparable result of the third quarter of 2018.

Masisa is focusing its efforts to strengthen its commercial strategy and maximize its profitability through what have been its most important competitive strengths and advantages. In this context, the company has made divestments of the industrial assets of Argentina, Brazil and two of the three plants in Mexico, which allowed it to raise funds for about USD 420 million, which is expected to be complemented with the sale of forestry assets announced to the market.

On April 5, 2019, the Board of Directors agreed to initiate an open and competitive process for the sale of Masisa's forest assets that it owns in Chile and Argentina. The Board of Directors considered that for the development of the new business model, vertical integration is not decisive, which is why this process represents an opportunity to maximize the value of forest assets and to generate tangible value for all shareholders of the Company.

As of December 31, 2018, forest assets in Argentina and Chile together have a book value of approximately USD 537 million, of which approximately USD 337 million correspond to plantations and USD 200 million to forest land.

These divestments will allow Masisa to have a more solid financial balance, which will allow her commercial activity to be focused on businesses with greater added value in the Andean Region, Central America, the United States, Canada, Asia and other export markets, maintaining the productive capacity to Supply the region from Chile.