Eucatex reports Recurring EBITDA of R$51.5 million (+13.9%) and Margin of 17% in 1Q18

The Company exchanged assets with Duratex in order to increase its fiberboard capacity.
Because of its nature, this transaction was submitted to Brazil's antitrust authority CADE for evaluation, which should announce its decision within 90 to 120 days.
Eucatex S.A. Indstria e Comrcio completes 67 years in 2018 and is one of Brazil's largest manufacturers of laminated flooring, wall partitions, doors, MDP/MDF/T-HDF panels, fiberboard, and paints and varnishes.
It operates five modern plants in Botucatu and Salto (both in So Paulo) and Cabo de Santo Agostinho (Pernambuco), employing 2,467 people.

SÃO PAULO, May 8, 2017 /PRNewswire/ -- Eucatex (B3: EUCA3 and EUCA4), one of the largest manufacturers of panels in Brazil, with operations also in the paint and varnish, laminated flooring, wall partitions and doors segments, announces today its results for the first quarter of 2018 (1Q18).

Still optimistic expectations marked the start of 2018, which was marked by the decline in interest rates and inflation, below the target, which positively influenced economic activity, which maintained its slight recovery trend.
The key indicators influencing the Company's business ended the quarter registering modest improvements, which signal growth in demand and, consequently, in industrial activity: increase in average real income, as well as favorable conditions for credit at lower costs and higher amounts to individuals.
One of the signs of improvement is the recovery in one of the main indices that measure the performance of the construction materials sector – the ABRAMAT (Brazilian Construction Materials Industry Association) Index, which rose 2.1% in 1Q18 and is expected to rise 1.5% in 2018. According to the Brazilian Tree Industry (IBÁ), the total panels market grew 4.5%.
The Company exchanged assets with Duratex in order to increase its fiberboard capacity. The transaction basically involves the acquisition of a production that includes: buildings, facilities and utilities that house 3 Fiberboard production lines, with nominal capacity of 200,000 m³/year, in addition to the painting and board cutting line. Because of its nature, this transaction was submitted to Brazil's antitrust authority CADE for evaluation, which should announce its decision within 90 to 120 days.

1Q18 Financial Highlights

Net Revenue of R$303.9 million (+7.3%)
Recurring EBITDA of R$51.5 million (+13.9%), with margin of 17%
Recurring net income of R$5.2 million (-46.6%)

1Q18 Operating Performance

Physical sales in the Company's Wood Segment, considering both domestic and export markets, fell 2.5% in 1Q18
The Company's panels export volume grew 14.1% in the quarter
Paint sales grew 2.4% in 1Q18, while the overall market contracted 2.6%

The earnings release, presentation and complete financial statements are available at: www.eucatex.com.br/ri.

1Q18 Conference Call: May 9, 2018, 9:00 a.m. (Brazil), Dial-in: (11) 2188-0155, Code: Eucatex.

Investor Relations: [email protected] (+55 11) 3049-2473

About Eucatex
Eucatex S.A. Indústria e Comércio completes 67 years in 2018 and is one of Brazil's largest manufacturers of laminated flooring, wall partitions, doors, MDP/MDF/T-HDF panels, fiberboard, and paints and varnishes. It operates five modern plants in Botucatu and Salto (both in São Paulo) and Cabo de Santo Agostinho (Pernambuco), employing 2,467 people. Its products are exported to more than 37 countries. For further information, visit www.eucatex.com.br/ri.

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SOURCE Eucatex