SANTIAGO, Chile, Aug. 11 /PRNewswire-FirstCall/ -- MASISA S.A. (Santiago
Stock Exchange: MASISA), (hereinafter referred to as "Masisa" or "the
Company"), a leading furniture board manufacturing and marketing company in
Latin America, today posted its consolidated financial statements for the
second quarter of 2008.
SECOND QUARTER 2008 HIGHLIGHTS
-- Sales in the second quarter of 2008 were 15.1% up on the same period in
2007 amounting to US$278.5 million, mainly driven by higher prices of wood
boards for furniture (MDF and PB) and a recovery of sawn lumber sales, which
offset the lower sales of MDF and fingerjoint moldings, due to the Company's
strategic decision of downscaling production of such products on account of
the slowdown of the U.S. real estate market.
-- The operating margin on sales improved, increasing from 23.9% in the
second quarter of 2007 to 25.3% in the second quarter of 2008, mainly driven
by the Company's ability to increase prices above the cost increases it faced
in this period, especially in the wood boards for furniture business. This was
in addition to the successful commercial endeavors of diversifying markets and
re-routing sawn lumber exports.
-- The SG&A expenses to sales ratio rose in the second quarter of 2008
accounting for 13.0% of sales against the 13.5% of sales in the same period in
2007, reflecting a greater operating efficiency.
-- Operating income increased by US$9.3 million (+36.8%) on the same
quarter in 2007 amounting to US$34.4 million, boosted by a higher gross margin
on sales, mainly due to the successful commercial focus.
-- Second quarter net income plummeted 79.4% on the same quarter in 2007
and amounted to US$3.3 million. This drop is mainly explained by the lower
non-operating income on account of the higher exchange rate and financial
expense differences.
-- Masisa announced a significant event on July 1 to the effect that it
had not reached a satisfactory agreement with Sonae Industria regarding the
merger of Masisa do Brasil and Tafisa Brasil, and it therefore decided to
exercise its put option. It should be recalled that on January 15 Masisa
acquired 45.68% of the shareholding of the Brazilian Company Tafibras
Participaciones S.A. ("Tafibras") and indirectly through Tafibras 37% of the
shareholding of the Brazilian Company Tafisa Brasil S.A. ("Tafisa"). The aim
of this was to work with the Portuguese Company Sonae Industria to implement a
possible combination of the businesses of Tafisa and the mentioned Brazilian
affiliate of Masisa. Regarding this, Masisa and Sonae Industria did not reach
a satisfactory agreement and Masisa exercised a put option compelling Sonae
Industria to buy 45.68% of Tafibras from Masisa at a total price of
approximately US$75 million. The proceeds received on July 31 were allocated
to paying off the Company's debt. It should be noted that Masisa had paid
about US$70 million for such shareholding.
-- Masisa also announced on July 1 that it will maintain its forestry
equity of approximately 38,000 hectares of pine and eucalyptus and plantable
lands in the provinces of Entre Rios and Corrientes in Argentina. In June last
year, Masisa had agreed to sell off 90% of its shareholding in Forestal
Argentina S.A. ("FASA"). The buyers were the investment Company Los Boldos
S.A. (80%) and GrupoNueva S.A. (10%), which is the controller of Masisa. The
sale was subject to normal commercial conditions for these kinds of deals, and
especially to authorization from Argentina's National Security Zone
Commission. The reason why the deal did not go through is that the Argentine
authorities did not make a decision within the term agreed on in the contract,
which therefore automatically became void. Due to this, Masisa will maintain
its current shareholding in FASA.
Quarter ended
Jun 30, Sep 30, Dec 31, Mar 31, Jun 30,
2007 2007 2007 2008 2008
(expressed in millions of US$, except per share information as a %)
Sales 241.9 247.7 259.7 257.6 278.5
Gross Margin 57.7 62.2 69.9 65.6 70.5
% of sales(1) 23.9% 25.1% 26.9% 25.4% 25.3%
Sales & Administration
Expenses (32.6) (33.4) (39.7) (35.1) (36.1)
% of sales(1) -13.5% -13.5% -15.3% -13.6% -13.0%
Operating Income 25.1 28.8 30.2 30.4 34.4
% of sales (1) 10.4% 11.6% 11.6% 11.8% 12.3%
EBITDA(2) 43.5 46.2 47.8 48.1 54.2
% of sales (1) 18.0% 18.7% 18.4% 18.7% 19.5%
Net Income for the Period 16.3 7.0 14.6 11.5 3.3
(1): As a % of sales in the quarter.
(2): EBITDA is Operating Income + Depreciation + Amortization + Depletion
Masisa S.A. Announces a Conference Call to Discuss 2Q 2008 Results
Masisa S.A., a leading Latin American producer of wood boards for
furniture, will hold its quarterly conference call on Wednesday, August 13,
2008 at 10:00 a.m. New York Time (Eastern Time). The Company will discuss
Results for the quarter ended on June 30, 2008.
Eugenio Arteaga, Masisa's CFO, with Pablo Lanyi -- Grunfeldt, Masisa's
Deputy CFO, will analyze the Company's latest results, and will be available
for answering questions from analysts and other stakeholders.
To participate in the conference call, please dial 888-713-4217 (domestic
U.S.A.) or 617-213-4869 (international) five to ten minutes before the call
and reference the pass code 70227297.
A simultaneous live Webcast of the call will be available over the
Internet at http://www.masisa.com under the Investor Relations section.
Participants may pre-register for the call at any time, including up to and
after the call start time, at:
https://www.theconferencingservice.com/prereg/key.process?key=PHV36BEDL
Pre-registrants will be issued a pin number to use when dialing into the
live call, which will provide quick access to the conference.
A replay of the call will be available beginning on Wednesday, August 13,
2008 at 12:00 p.m. New York Time (Eastern Time) by dialing 888-286-8010
(domestic U.S.A.) or 617-801-6888 (international) and providing the following
replay code: 72174183.
In addition, the Webcast will be available on the Company's web site at
http://www.masisa.com.
Forecasts and Estimates
This press release may contain forecasts which are different statements
from historical facts or current conditions and include the management's
current vision and estimates of future circumstances industry conditions and
the Company's performance. Some forecasts may be identified by the use of
terms such as "may", "should", "anticipates", "believes", "estimates",
"expects", "plans", "intends", "forecasts", and other similar expressions.
Statements about future market share projected future competitive strengths
the implementation of significant operating and financial strategies the
direction of future operation and the factors or trends affecting financial
conditions liquidity or operating income are examples of forecasts. Such
statements reflect the current management vision and are subject to various
risks and uncertainties. There is no guarantee that the expected events trends
or results will actually occur. These statements are made based on many
assumptions and factor including general economic and market conditions
industry conditions and operating factors. Any changes in such assumptions or
factors could lead to the current results of Masisa and the projected Company
activities to materially differ from current expectations.
About Masisa
Masisa is a leading furniture and interior architecture board production
and marketing Company in Latin America. It owns forest assets in most of the
region, thereby guaranteeing the raw material for its wood board business.
Masisa's value proposal is to be a reliable brand, and a Company close to all
its stakeholders, anticipating market needs by means of product and service
innovation, and operating responsibly towards society and the environment.
Masisa has 13 production plants in Chile, Argentina, Brazil, Venezuela and
Mexico, all of which will have the ISO 14,001 and OHSAS 18,001 certification.
Masisa is currently building an MDP plant in Montenegro, Brazil that will have
an annual production capacity of 750,000 cubic meters of MDP and an annual
melaminating capacity of 300,000 cubic meters. This plant will be the
Company's largest plant in Latin America, mainly for supply to the Brazilian
market.
Masisa has three other divisions that operate in synergy with its core
board division: forestry, solid wood, and retail.
Masisa is a publicly traded corporation and its shares are traded on the
Santiago Stock Exchange. The Company had total sales of approximately US$966
million in 2007.
Q2'08 Results Meeting
The Company will also hold its quarterly results meeting on Wednesday,
August 13, 2008 at 5:00 p.m. New York Time (Eastern Time).
Enrique Cibie, Masisa's CEO, and Eugenio Arteaga, Masisa's CFO, will
present to the audience its quarterly financial results and a Company overview
regarding its business units and other relevant issues. The meeting will be
held at ICARE Convention Center, located in Santiago (Apoquindo 3650, Las
Condes). Please contact our Investor Relations Team in order to confirm
participation in the event.
For further information, please contact: Investor Relations
(56 2) 350 6038
investor.relations@masisa.com
Internet: www.masisa.com
SOURCE Masisa S.A.
Rodrigo Hahn, Head of Investor Relations, (56 2) 707 8608,
rodrigo.hahn@masisa.com, Nicolas Donoso, Investor Relations, (56 2) 707 8683,
nicolas.donoso@masisa.com, both of Masisa S.A.
