CHILE - Arauco, one of the largest wooden panel producers in the world, reported sales revenues of USD 1,352.9 million during the fourth quarter of 2020, a 12.4% increase compared to the fourth quarter of 2019.

Adjusted EBITDA reached USD 380.8 million, a 80.5% or USD 169.8 million increase compared to the same period of 2019.

Arauco’s net income was USD 74.9 million, a USD 166.9 million increase compared to the fourth quarter of 2019.

Wooden Panel sales increased on a quarterly basis mainly due to an increase in average prices (+5.6%). During this quarter, there was an increase in demand continuing the trend seen during the previous quarter because of the reactivation of markets and improvements coming from consumption-encouraging measures taken by different governments.

For Particleboard/MDP and MDF during the 4Q, demand has remained strong with high repair and remodeling and strong new construction segments. Prices continue to increase throughout most regions and products. It is expected that these market conditions to continue at least until Q2-2021, with the uncertainty of a “tough Covid second wave”, highly restricted logistical availability in some markets and effects of a successful vaccination process in some countries. In the US, residential construction indicator looks strong (building permits).

Sawn timber sales volume also increased during this quarter (+11.9%). Positive results due to a strong retail channel and the recovery of construction, repair and remodeling sectors.

During the fourth quarter, Plywood average prices increased by 9.0%, while sales volume increased by 7.3%. This was mainly due to higher demand in markets such as the US, Europe and Oceania, coupled with logistical complications of some of Arauco´s competitors. Plywood demand has steadily increased during the past months, while prices have reached record levels.