Masisa S.A. Posts Q1 2008 Financial Results

SANTIAGO, Chile, April 29 /PRNewswire-FirstCall/ -- MASISA S.A. (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 first quarter of 2008.

Q1'08 HIGHLIGHTS

-- Sales in the first quarter of 2008 were 19.0% up on the same period in
2007 amounting to US$257.6 million, mainly driven by higher prices of
furniture wood boards (MDF and PB) and by a recovery of sawn lumber
sales, which offset the lower sales of MDF and fingerjoint moldings,
mainly due to the slowdown in the U.S. residential real estate market.
-- The operating margin on sales improved, increasing from 24.7% in the
first quarter of 2007 to 25.4% compared with the same quarter in 2008,
mainly driven by the company's ability to increase prices above the
cost increases it faced, especially in the furniture wood board
business. This was combined with the successful commercial endeavors of
diversifying markets and re-routing exports, which were previously
allocated to the United States, to other markets, especially the
re-routing of oriented strand board (OSB) and sawn lumber.
-- SG&A / Sales ratio decreased in the first quarter of 2008 to 13.6%
versus the 14.2% in the same period in 2007, reflecting a greater
operational efficiency.
-- Operating income increased by US$7.8 million (+34.3%) on the same
quarter in 2007 totaling US$30.4 million, boosted by a higher gross
margin on sales (on account of the successful commercial focus).
-- First quarter net income soared 255.5% versus the same period in 2007,
and reached US$11.5 million, this increase is explained by the higher
operating and non-operating incomes.
-- The company had an adequate operating performance, which was reflected
by its trailing 12 months operating working capital to sales ratio of
26.9%, versus the 29.1% in the same period in 2007.
-- On March 13, 2008, Masisa delisted its American Deposit Shares (ADS)
from New York Stock Exchange "NYSE". Masisa also terminated the deposit
agreement relating to the ADS with the Bank of New York as the
depositary bank. The latter implied the deregistration and termination
of its SEC reporting obligations, as stipulated in the Securities
Exchange Act. The board's decision is based on several factors,
including the following: at present less than 5% of the outstanding
common stock is held in the form of ADSs and taking this action will
allow Masisa reduce its operating expenses. It is important to mention
that Masisa will maintain its high corporate governance standards. Such
behavior has allowed the Company to be recognized as one of the top
five companies in Latin America in terms of corporate governance
standards by MZ Consult's IR Global Ranking. Similarly, the Company
will maintain its transparent and fluid communication with the investor
community through its fully dedicated Investor Relations team. This
includes maintenance Quarterly Results Conference Calls, Quarterly
Earnings Press Releases and general Press Releases in English.
-- Masisa at a Board of Directors meeting held on March 26, 2008, agreed
to propose the payment of a final dividend of US$10,941,768 at the next
Ordinary Shareholders' Meeting. The proposed dividend accounts for 30%
of the net distributable income for the period ended December 31, 2007.
The total dividend per share will therefore be US$0.0019305309. The
proposed payment date for the dividend is May 28, 2008. Those
shareholders listed in the Company Shareholders' Registry as of May 22,
2008, shall be entitled to receive the dividend payment.

Quarter ended
Mar 31, Jun 30, Sep 30, Dec 31, Mar 31,
2007 2007 2007 2007 2008
(in millions of US$, except per share information in %)
Sales 216.5 241.9 247.7 259.7 257.6
Gross margin 53.5 57.7 62.2 69.9 65.6
% over sales(2) 24.7% 23.9% 25.1% 26.9% 25.4%
Selling and Administrative
Expenses (30.8) (32.6) (33.4) (39.7) (35.1)
% over sales(2) 14.2% 13.5% 13.5% 15.3% 13.6%
Operating Income 22.7 25.1 28.8 30.2 30.4
%over sales(2) 10.5% 10.4% 11.6% 11.6% 11.8%
EBITDA(3) 39.0 43.5 46.2 47.8 48.1
%over sales(2) 18.0% 18.0% 18.7% 18.4% 18.7%
Net Income for the Period 3.2 16.3 7.0 14.6 11.5
Earnings per Share(US$) 0.0006 0.0029 0.0012 0.0026 0.0020
Earnings per ADS (US$) (1) 0.03 0.14 0.06 0.13 0.10

(1) One ADS is equivalent to 50 common shares.
(2) As a % of sales in the quarter.
(3) EBITDA represents: Operating Income + Depreciation + Amortization +
Depletion

For further information on Masisa's Q1 2008 results please go to 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 operations, 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 factors, 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.

First Call Analyst:
FCMN Contact: rodrigo.hahn@masisa.com

Source: Masisa S.A.

CONTACT: Investor Relations, +56-2-350-6038,
investor.relations@masisa.com

Web site: http://www.masisa.com/

2008-04-29 22:29:49 0348497 PRNEWSWIRE