Arauco, one of the largest global forest companies, reported sales revenues of USD 1,127.2 million during the first quarter of 2020 (1Q-2020), a 18.8 percent decrease compared to the first quarter of 2019.
Company’s adjusted EBITDA reached USD 194.6 million, a 45.2 percent or USD 160.3 million decrease compared to the same period of 2019, while net income (profit/loss) was USD -29.7 million, a USD 155.8 million decrease compared to the first quarter of 2019.
In the first quarter 2020 sales of the Wooden Panel division decreased compared to the fourth quarter 2019, with sales volume and prices decreasing by 1.6 percent and 1.5 percent, respectively.
During the beginning of the first quarter the Latin American market showed encouraging signs, but the impact of COVID-19 has been significant in the region due to ongoing quarantines in some countries. This started to affect Arauco’s sales at the end of March, and uncertainty going forward remains. In the US and Canada sales volumes and prices remained stable.
Plywood sales volume increased by 4.1 percent during the first quarter. The year began with an improvement in some markets with respect to the previous quarter. In terms of supply, Arauco has noticed competitors leaving the market due to low profitability.
During the first quarter 2020, capital expenditures reached USD 445.5 million, USD 11.2 million or 2.6 percent higher than the previous quarter. This was mainly due to a 2.6 percent or USD 8.9 million increase in purchase and sale of property, plant and equipment, mostly related to the ongoing MAPA project.