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SANTIAGO, Chile, April 27 /PRNewsire-FirstCall/ -- MASISA S.A. (NYSE:MYS) (hereinafter referred to as "Masisa" or "the Company"), a leading wood board for furniture manufacturing and marketing company in Latin America, today posted its consolidated financial statements for the first quarter of 2007. Q1'07 HIGHLIGHTS * Sales in the first quarter of 2007 were 1.9% up on the same period of 2006, amounting to US$216.5 million, driven by higher prices of wood boards for furniture (MDF and PB), which offset the lower sales of OSB (Oriented Strand Board) and of solid wood products. * The gross margin on sales improved, increasing from 22.3% to 24.7% compared with the same quarter in 2006, mainly driven by the Company's ability to transfer its cost increases to prices. * Sales and administrative expenses increased in the first quarter of 2007, accounting for 14.2% of sales, which was slightly lower on the first quarter of 2006 when they accounted for 13.2% of sales. This was mainly due to higher sales expenses for re-routing two shipments of sawn lumber from Mexico to other markets in Central America. * Operating income increased by 17.6% on the same quarter in 2006, amounting to US$22.7 million, boosted by a higher sales margin (on account of the successful commercial efforts), thus offsetting the higher sales and administrative expenses. * First quarter net income was US$3.2 million, which was a 177.3% increase on the same quarter in 2006. * The Company had a suitable operating performance, which was reflected by an operating working capital to sales ratio of 34.6% in the first quarter of 2007, thus exhibiting an improvement when compared with the first quarter of 2006 when it was 35.5%. * As part of its strategic plan, in the US market Masisa has decided to focus on its commercial activities. This is why the MDF mouldings plant in Charleston was closed down in February, 2007 (capacity of 36,000 m3 a year). The Company deems this decision will generate annual cost savings of at least US$3.0 million, excluding the 2007 restructuring costs. The production line will be fully or partially relocated in Chile. Quarter ended Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, 2006 2006 2006 2006 2007 (in millions of US$, except per share information in %) Sales 212.6 218.2 233.0 222.7 216.5 Gross margin 47.3 48.2 58.1 53.9 53.5 % over sales(2) 22.3% 22.1% 24.9% 24.2% 24.7% Selling and Administrative Expenses (28.1) (30.1) (30.1) (35.8) (30.8) % over sales(2) -13.2% -13.8% -12.9% -16.1% -14.2% Operating Income 19.3 18.1 28.0 18.1 22.7 EBITDA(3) 38.3 35.2 44.9 35.4 39.0 Net Income for the Period 1.2 4.1 13.8 10.4 3.2 Earnings per Share (US$) 0.0002 0.0007 0.0024 0.0018 0.0006 Earnings per ADS (US$)(1) 0.01 0.04 0.12 0.09 0.03 (1) An ADS equals 50 common shares. (2) As % of Sales for the quarter. (3) EBITDA represents Operating Income + Depreciation + Amortization + Depletion. CONSOLIDATED INCOME STATEMENT NET SALES Q1'07 versus Q1'06 The Company had sales of US$216.5 million in the first quarter of 2007, thus representing a US$3.9 million (+1.9%) increase on the first quarter of 2006. The following are the main factors explaining this sales increase in the first quarter of 2007 compared with the same quarter in 2006: Boards * MDF board sales were up US$13.3 million (+18.2%), mainly driven by the price increase across all markets (consolidated increase of 26.0%), which offset the lower sales volume in the period (6.2% drop). This lower sales volume in the first quarter of 2007 is largely explained by the lower sales to moulding producers in Chile and tougher competition in Mexico for MDF from the USA (due to the slowdown of the real estate market in the United States, some producers have re-routed their production to Mexico). Venezuela had a strong performance with a 94.2% increase in MDF sales amounting to US$18.7 million in the period, and so did Brazil with a 22.3% increase in sales amounting to US$32.6 million. * Particleboard (PB) sales were also up, and increased by US$4.2 million (+9.5%), largely due to a 16.2% price increase (equivalent to US$7.2 million), on account of a price increase across most of the markets, mainly in Venezuela, Peru, Chile and Argentina with rises of 33.6%, 25.5%, 11.9% and 9.0%, respectively, which offset the lower volumes sold (-5.7%). The lower volume of PB sales is essentially explained by (i) the lower production in Chile due to maintenance at the Mapal plant, which was carried out in the first quarter of 2007, (ii) lower demand from industrial clients in Chile (9.5% drop in the total PB sales volume in Chile) and (iii) tougher competition in the Colombian market, where one of the Company's main competitors in the region marketed ultra light melamine MDF with large discounts, and this product competes directly with particleboards (25.8% drop in the total PB sales volume in Colombia). We deem this commercial situation in Colombia to be temporary. * OSB board sales fell US$6.4 million (-38.7%), which is mainly explained by the end of OSB exports from Brazil to the United States (they plunged 99.3% in volume). Due to the adverse demand conditions in the United States, OSB exports from Brazil to the United States are no longer attractive in commercial terms. OSB sales have been re-routed from the United States, mainly to Brazil, which accounted for 46.5% of the total OSB sales in the first quarter, which was a 43.3% increase in the total sales in that market compared with the first quarter of 2006 amounting to US$4.7 million. There were higher OSB sales in Venezuela and Argentina, with increases of US$0.8 million and US$0.4 million, respectively, which reflects the commercial endeavors to open up new markets. Solid Wood * Sales of fingerjoint mouldings were down US$3.3 million (-15.0%), mainly due to a 9.7% drop in volume in the United States, along with a 5.8% price decrease. Sales of MDF mouldings were down US$2.4 million (-17.7%), due to a 28.8% drop in the volume sold in the United States, which could not be offset by an 11.7% price increase in that market. The drop in the sales volume of MDF mouldings is part of the Company's commercial strategy to focus on the profitability of its exports, thereby sacrificing volume. This volume was marketed as boards in Latin American markets, where demand remains strong for these products. * Drop in sales of solid wood doors of US$0.6 million (-6.9%), explained by a 15.0% decrease in the volume sold, which was not fully offset by a 9.6% price increase. Such drop in the sales volume was due to inventories corresponding to 2005 production being sold in 2006. Door production rates have remained steady in 2007 compared with the first quarter of 2006. The price increase is mainly explained by the better product mix marketed (new models of doors have been developed with better market prices) and by the more aggressive commercial strategy (diversification of distribution channels and price increases). * Sawn lumber sales plummeted US$4.8 million (-25.3%), which is explained by a 32.4% drop in volume, which could not be fully offset by a 10.4% price increase. This drop is mainly explained by the lower green sawn lumber exports to Mexico, which have had to stop due to regulatory changes. Green sawn lumber can now no longer be exported to Mexico, and the Company has therefore partially and increasingly replaced such exports with dry lumber. In fact, March exports increased by 57.2% when compared to those of February, totaling 14,143 cubic meters. Another reason for the lower sales volume was the lower availability of saw logs in Venezuela. Forestry * Higher saw log sales of US$1.0 million (+9.6%), due to a 12.3% price increase that offset a 2.4% drop in volume. Q1'07 versus Q4'06 The Company had sales of US$216.5 million in the first quarter of 2007, which were US$6.1 million (-2.8%) down on the fourth quarter of 2006. The following were the main changes in sales in the first quarter of 2007 compared with the last quarter of 2006: Boards * MDF sales were relatively stable, falling slightly by US$1.5 million (-1.7%). This decrease is largely explained by the lower sales volumes in the period (-6.8%), which could not be fully offset by price increases (+5.5%). The drop in the consolidated volume is mainly explained by lower sales to moulding producers in Chile (14.3% drop in the MDF sales volume in Chile), by a certain degree of seasonality affecting countries in South America and by a production stoppage in Venezuela, where the sales volume dipped 7.8%. The greater MDF availability in Chile, due to the lower demand from moulding producers, was re-routed via exports to markets in Peru, Colombia and Mexico. * Particleboard (PB) sales also remained relatively stable with a slight drop of US$0.3 million (-0.6%). This is explained by a lower consolidated volume (-5.9%), which was virtually fully offset by price rises (+5.6%). The volume decrease is explained by declining sales in Chile due to lower sales to industrial customers and the maintenance stoppage at the Mapal plant, along with a certain degree of seasonality affecting markets in South America. * OSB sales were up US$1.7 million (+19.7%), which is mainly explained by higher prices (+5.6%) and volumes (+13.3%). Due to the adverse demand conditions in the United States, OSB exports from Brazil to the United States are no longer attractive in commercial terms. OSB sales have been re-routed mainly to Brazil, which accounted for 46.5% of the total OSB sales in the first quarter, which was a 6.0% increase in the total sales in that market compared with the fourth quarter of 2006 amounting to US$4.7 million. There were higher OSB sales in Venezuela and Argentina, with increases of US$0.4 million and US$0.2 million, respectively, reflecting the commercial endeavors to open up new markets. Solid Wood * The US$5.6 million (-33.2%) decrease in sales of MDF mouldings is the main reason for the decrease in consolidated sales, mainly on account of the sales volume plummeting 28.7% in the US market. This is explained by prices remaining relatively high. This has been part of the Company's commercial strategy to focus on maintaining export margins at attractive levels, thereby sacrificing volume. This volume was sold as boards in the different markets in Latin America. Sales of fingerjoint mouldings fell US$1.2 million, mainly due to lower prices (-17.0%) in the United States, due to the slowdown in the construction industry. Nevertheless, there was an increase in the sales volume (+13.2%). * There were lower sales of solid wood doors of US$2.2 million (-20.9%), due to a drop in the sales volume in the United States (-22.7%), which could not be offset by a price increase in that market (+1.3%). The lower volume in the first quarter of 2007 is explained by the fact that the comparative base is relatively high due to greater sales made in December 2006 on account of the clearing of inventories and the shutdown of the Chillan door plant in Chile for maintenance. * Sawn lumber had a stable level of sales, which only increased by US$0.1 million (+0.8%). Forestry * Higher saw log sales of US$0.2 million (+1.9%), due to a 4.2% price increase, offset in part by a 2.3% drop in volume. OPERATING INCOME Q1'07 versus Q1'06 The operating income amounted to US$22.7 million in the first quarter of 2007, which was an increase of US$3.4 million (+17.6%) on the first quarter of 2006. The consolidated gross margin was US$53.5 million in the first quarter of 2007, which was an increase of US$6.1 million (+12.9%) on the same quarter of the previous year. As a percentage of the Company's total sales, the gross margin was higher, increasing from 22.3% in the first quarter of 2006 to 24.6% in the first quarter of 2007. The following are the main factors explaining this higher operating income in the first quarter of 2007 compared with the same quarter in 2006: Boards * Higher MDF and PB prices (26.0% and 16.2%, respectively), which offset the lower volume of these same products (-6.2% and -5.7%, respectively) and offset the generally difficult price and volume scenario of the solid wood and OSB business, due to the slowdown in the construction industry in the United States along with cost pressures during the period, mainly resins and power, which jointly account for approximately 43.8% of the total consolidated board manufacturing cost. The Company was able to transfer such cost pressures to prices, which has enabled it to recover its consolidated gross margin as a percentage of the total consolidated sales. Solid Wood * Drop in sales of all the solid wood products (MDF mouldings, fingerjoint mouldings, solid wood doors and sawn lumber). It should be highlighted that the Company raised the prices of (i) its MDF mouldings in 2006, and has in part maintained such prices in 2007 and (ii) of its solid wood doors to improve its margins of these lines and address, albeit partially, the tough scenario of the construction sector in the United States, which is Masisa's main solid wood product market. Despite the Company's commercial efforts, cost pressures related to an increase in the price of wood, greater logistical costs due to the higher oil price, the appreciation of the Brazilian real and the Chilean peso, and US$ 1.0 million in non recurring costs related to the closure of the Charleston plant (i.e. inventory write-offs and headcount reduction expenses), have reduced the Solid Wood Business Unit's contribution to the Company's operating margin. The sales and administrative expenses to sales ratio increased slightly, up from 13.2% in the first quarter of 2006 to 14.2% in the first quarter of 2007. Sales and administrative expenses amounted to US$30.8 million, and were US$2.7 million (+9.7%) higher than the first quarter of the previous year. The increase in sales and administrative expenses in the first quarter of 2007 are mainly explained by higher non-recurrent commercial expenses of re-routing two sawn lumber shipments from Mexico to other markets in Central America (US$1.1 million). Q1'07 versus Q4'06 The Company's operating income amounted to US$22.7 million in the first quarter of 2007, which was an increase of US$4.5 million (+24.9%) on the fourth quarter of 2006. The consolidated gross margin was US$53.5 million in the first quarter of 2007, which was a decrease of US$0.4 million (-0.8%) on the last quarter of the previous year. As a percentage of the Company's total sales, the gross margin remains at a healthy level of 24.6% and higher than the 24.2% in the fourth quarter of 2006. The following are the main factors explaining this higher operating income in the first quarter of 2007 compared with the fourth quarter of 2006: Boards * Both particleboards and MDF benefited from a price increase (+5.6% and +5.5%, respectively), which enabled the Company to continue with a healthy consolidated gross margin. This more than offset the higher board production costs in the fourth quarter of 2006, mainly for resins and power (accounting for approximately 43.8% of the total board cost) and for wood. Solid Wood * There was a drop in the margins of the fingerjoint and MDF mouldings business in the period, due to a price decrease in the US market (-17.1% and - 8.2%), besides a lower volume of MDF mouldings (-28.7%) in that market. These decreases were in addition to some cost increases related to the increase in the price of wood and US$ 1.0 million in non recurring costs related to the closure of the Charleston plant (i.e. inventory write-offs and headcount reduction expenses). The sales and administrative expenses to sales ratio improved, dropping from 16.1% in the fourth quarter of 2006 to 14.2% in the first quarter of 2007. Sales and administrative expenses amounted to US$30.8 million, and were US$5.0 million (-13.9%) down on the fourth quarter of 2006, largely explaining the better consolidated operating income. The lower sales and administrative expenses in the first quarter of 2007 compared with the fourth quarter of 2006 are explained by the fact that in the fourth quarter of 2006 sales and administrative expenses were extremely high due to non-recurrent adjustments (US$2.5 million). The non-recurrent expenses amounted to US$1.1 million in the first quarter of 2007 and mainly involved re-routing two sawn lumber shipments from Mexico to other markets in Central America. EBITDA Q1'07 versus Q1'06 In line with the increase in sales, mainly driven by the furniture board business (MDF and PB) and despite raw material cost pressures and the higher sales and administrative expenses, the Company's EBITDA was up US$0.8 million (+2.0%), amounting to US$39.0 million. The EBITDA margin on sales remained stable at 18.0% for both periods. Q1'07 versus Q4'06 In keeping with the better operating income, the Company had a higher operating cash flow generation (EBITDA) than that in the fourth quarter of 2006. The first quarter EBITDA was US$39.0 million, which was an increase of US$3.7 million (+10.4%). The EBITDA margin on sales increased from 15.9% in the previous quarter to 18.0%, mainly due to lower sales and administrative expenses. NON-OPERATING INCOME Q1'07 versus Q1'06 Non-operating income plunged US$4.7 million (-38.6%) on the first quarter of 2006 amounting to -US$16.8 million. This is mainly explained by higher other non-operating disbursements, which increased by US$4.6 million (+143.3%) from -US$3.2 million in the first quarter of 2006 to US$7.7 million in the first quarter of 2007. These higher expenses were mainly due to (i) the indemnity and the repair of a sawmill in Venezuela in the process of being returned to Proforca (CVG Productos Forestales de Oriente, C.A. is a state- owned company and is the largest player in Venezuela's forestry sector), totaling US$2.3 million, (ii) closure of the Charleston MDF mouldings plant (US$1.9 million) and (iii) the fire of 1,171 hectares of planted forests in Chile in January 2007, which meant the Company had to acknowledge the estimated loss (US$2.1 million). Financial expenses were down US$2.1 million (-19.5%) from US$10.6 million in the first quarter of 2006 to US$8.5 million in the first quarter of 2007. This is explained by the drop in the Company's total financial debt and in the interest rate related to this debt. Q1'07 versus Q4'06 Non-operating income amounted to -US$16.8 million, which was a drop of US$6.7 million on the -US$10.1 million of the fourth quarter of 2006. This is mainly explained by the lower non-operating earnings, which fell by US$3.9 million (-92.7%) from US$4.2 million in the fourth quarter to US$0.3 million in the first quarter of 2007. This decrease is largely explained by the reverse of provisions for idle goods in Chile of US$3.0 million in the fourth quarter of 2006. Moreover, there was a lower financial income of US$4.1 million. These negative effects were in part offset by the lower financial expenses (see below). Financial expenses were down US$0.8 million (-8.9%) from US$9.3 million in the fourth quarter to US$8.5 million in the first quarter of 2007. This is explained by the lower amount of average financial debt in the first quarter of 2007 compared with the fourth quarter of 2006. NET INCOME Q1'07 versus Q1'06 Net income amounted to US$3.2 million and surged US$2.1 million (+177.3%). This increase is mainly explained by the higher operating income and the lower income tax (-US$1.5 million) and greater minority interest (+US$1.9 million), which offset the lower non-operating income. Q1'07 versus Q4'06 Net income was US$3.2 million and was down US$7.2 million (-68.9%). This drop is mainly explained by the lower non-operating income, mainly arising from lower financial income (-US$4.1 million), lower other non-operating income (-US$3.9 million) and higher income tax (+US$6.4 million). Higher income tax is mainly explained by higher deferred income taxes and, to a large extent, does not correspond to cash outflows. CONSOLIDATED BALANCE SHEET ASSETS (March 31, 2007 versus March 31, 2006) The Company's total assets amount to US$2,037.9 million as of March 31, 2007, which is a 1.9% year-on-year increase. Current Assets These amount to US$507.7 million, which is a US$48.0 million (-8.6%) drop on March 31, 2006. This decrease is mainly explained by lower time deposits (- US$54.6 million) and inventories (-US$8.6 million), which offset the increases in account receivables (+US$15.3 million) and other receivables (+US$7.7 million). Current assets mainly consist of cash and cash equivalents (time deposits and marketable securities) amounting to US$50.8 million, account receivables of US$136.5 million, inventories of US$198.6 million and recoverable taxes of US$61.7 million. The Company had a suitable operating performance in the first quarter ending March 31, 2007, compared with the same period in 2006: Q1'07 Q1'06 (i) Accounts Receivable Turnover (times) 2.78 2.99 (ii) Inventory Turnover (times) 0.85 0.80 (iii) Operating Working Capital/Sales (%) 34.6 35.5 Fixed Assets These amount to US$1,547.2 million, which was a US$82.2 million (+5.6%) increase on March 31, 2006. This increase is mainly explained by the higher other fixed assets net of depreciation (+88.8 million), which is largely explained by the higher forestry asset appraisal (+51.9 million) and construction works (MDF plant) (+41.6 million). This increase offset the drop in machinery and equipment net of depreciation (-US$20.3 million). Fixed assets mainly consist of machinery and equipment net of depreciation amounting to US$536.6 million and plantations (stated in other fixed assets) of US$614.3 million. The investment in fixed assets in the twelve-month period ending March 31, 2007, amounted to US$18.8 million, accounting for 154% of the depreciation in the period. Other Assets These amount to -US$17.1 million, and improved on the -US$20.6 million of the first quarter of 2006. LIABILITIES (March 31, 2007 versus March 31, 2006) Total assets amounted to US$840.4 million, which was a decrease of US$0.4 million (-0.04%) on the total assets as of March 31, 2006. Banks Masisa S.A.'s debt with financial institutions amounts to US$296.8 million, which was a US$29.3 million (-9.0%) drop on March 31, 2006. This decrease is mainly explained by the reduction of bank debt in Chile of US$10.6 million, in Venezuela of US$9.7 million and other affiliates of US$9.0 million. The proceeds used to pay these debts mainly came from the generation of own cash and to a lower extent from loans and capital increases made in the first quarter of 2006. Bonds Masisa S.A.'s bonds amount to US$308.7 million, which was a US$21.5 million (-6.5%) decrease on March 31, 2006. This drop is mainly explained by the start of capital amortization of the A series bonds of UF500,000* (approximately US$17.1 million) and the May 2006 amortization of one installment of a private placement of US$9.0 million. (* Chilean nonmonetary inflation-indexed unit.) SHAREHOLDERS' EQUITY (March 31, 2007 versus March 31, 2006) Masisa S.A.'s shareholders' equity amounts to US$1,182.1 million as of March 31, 2007, which is an increase of US$45.3 million (+4.0%) on March 31, 2006. Paid-in Capital The paid-in capital amounts to US$812.9 million, which is a decrease of US$1.0 million (-0.1%) on March 31, 2006. Other Reserves These are US$212.1 million, which is an increase of US$26.2 million (+14.1%). This account is mainly the forestry reserve, which amounts to US$201.1 million. This increase is explained by a higher difference between the appraisal value of forestry plantations and their respective historical cost. Retained Net Income This amounts to US$157.2 million, which is an increase of US$20.1 million (+14.6%). This increase is explained by the higher accumulated net income, which rose by US$18.0 million (+21.3%). Such increase went hand in hand with a higher net income for the 3-month period ending on March 31, 2007, amounting to US$3.2 million against the US$1.2 million at March 31, 2006, i.e., an increase of US$2.1 million (+177.3%). FINANCIAL OVERVIEW First quarter ended March 31, 2007: The table below shows the Company's main consolidated financial figures in the quarter and the year-on-year percentage change. Quarter ended Mar 31, Mar 31, Variation 2007 2006 % (in millions of US$) Sales 216.5 212.6 1.9% Gross Margin 53.5 47.3 12.9% Selling and Administrative Expenses (30.8) (28.1) 9.7% Operating Income 22.7 19.3 17.6% Net Income for the Period 3.2 1.2 -177.3% Depreciation + Amortization 12.3 12.8 -3.3% Depletion(1) 4.0 6.3 -35.3% EBITDA 39.0 38.3 2.0% Earnings per Share (US$) (2) 0.0006 0.0002 177.5% Earnings per ADS (US$) (2) 0.03 0.01 177.5% (1) Corresponds to the sold/consumed saw log cost in the period which does not represent cash flow. (2) One ADS is equivalent to 50 common shares. The ADS of Masisa (former Terranova) started to be traded on August 5, 2005. Note: For rounding-up effects, the sum of the figures stated may differ from the total. Three-month period ended March 31, 2007: The table below shows the Company's main consolidated financial figures for the quarter ended March 31, 2007 and the year-on-year percentage change. Aggregate Mar 31, Mar 31, Variation 2007 2006 % (in millions of US$) Income 216.5 212.6 1.9% Gross Margin 53.5 47.3 12.9% Selling and Administrative Expenses (30.8) (28.1) 9.7% Operating Income 22.7 19.3 17.6% Net Income for the Period 3.2 1.2 177.3% Depreciation + Amortization 12.3 12.8 -3.3% Depletion(1) 4.0 6.3 -35.3% EBITDA 39.0 38.3 2.0% Earnings per Share (US$) (2) 0.0006 0.0002 177.5% Earnings per ADS (US$) (2) 0.03 0.01 177.5% (1) Corresponds to the sold/consumed saw log cost in the period which does not represent cash flow. (2) One ADS is equivalent to 50 common shares. The ADS of Masisa (former Terranova) started to be traded on August 5, 2005. Note: For rounding-up effects, the sum of the figures stated may differ from the total. Information by Geographic Segment: The table below describes the main company segments, according to the origin of sales for the indicated periods. Quarter ended Aggregate Mar 31, Mar 31, Mar 31, Mar 31, 2007 2006 2007 2006 (in millions of US$) (in millions of US$) Net Sales Chile 75.8 73.6 75.8 73.6 Brazil 49.9 50.2 49.9 50.2 Venezuela 41.1 26.8 41.1 26.8 Mexico 20.7 30.5 20.7 30.5 USA 38.8 51.3 38.8 51.3 Colombia 29.9 27.8 29.9 27.8 Argentina 7.7 6.2 7.7 6.2 Ecuador 6.7 5.0 6.7 5.0 Peru 2.8 2.5 2.8 2.5 Others (1) (57.0) (61.2) (57.0) (61.2) Total 216.5 212.6 216.5 212.6 Gross Margin Chile 16.1 13.8 16.1 13.8 Brazil 11.6 10.3 11.6 10.3 Venezuela 8.3 4.6 8.3 4.6 Mexico 3.8 4.3 3.8 4.3 USA 0.8 3.4 0.8 3.4 Colombia 8.2 7.3 8.2 7.3 Argentina 2.0 1.4 2.0 1.4 Ecuador 1.7 1.4 1.7 1.4 Peru 0.9 0.7 0.9 0.7 Others (1) 0.0 0.2 0.0 0.2 Total 53.5 47.3 53.5 47.3 Operating Income Chile 3.8 4.2 3.8 4.2 Brazil 6.7 6.2 6.7 6.2 Venezuela 3.9 0.2 3.9 0.2 Mexico 1.1 1.5 1.1 1.5 USA (1.3) (0.1) (1.3) (0.1) Colombia 5.8 5.1 5.8 5.1 Argentina 1.3 0.9 1.3 0.9 Ecuador 1.0 0.8 1.0 0.8 Peru 0.5 0.4 0.5 0.4 Others (1) 0.0 0.2 0.0 0.2 Total 22.7 19.3 22.7 19.3 Depreciation + Amortization Chile 3.8 3.9 3.8 3.9 Brazil 3.3 3.2 3.3 3.2 Venezuela 2.6 2.9 2.6 2.9 Mexico 0.4 0.5 0.4 0.5 USA 0.1 0.1 0.1 0.1 Colombia 2.1 2.1 2.1 2.1 Argentina 0.0 0.0 0.0 0.0 Ecuador 0.0 0.0 0.0 0.0 Peru 0.0 0.0 0.0 0.0 Others (1) 0.0 0.0 0.0 0.0 Total 12.3 12.8 12.3 12.8 Depletion Chile 2.0 3.1 2.0 3.1 Brazil 1.1 1.9 1.1 1.9 Venezuela 0.8 0.9 0.8 0.9 Mexico 0.0 0.0 0.0 0.0 USA 0.0 0.0 0.0 0.0 Colombia 0.2 0.4 0.2 0.4 Argentina 0.0 0.0 0.0 0.0 Ecuador 0.0 0.0 0.0 0.0 Peru 0.0 0.0 0.0 0.0 Others (1) 0.0 0.0 0.0 0.0 Total 4.0 6.3 4.0 6.3 (1): Inter-Company sales adjustments. Note: For rounding-up effects, the sum of the figures stated may differ from the total. Sales by Country: The table below shows the breakdown of consolidated sales by product export market for the periods indicated. Note: The amounts differ from income by geographical segment outlined on page 13, due to inter-company sales and exports. Quarter ended Aggregate Mar 31, Mar 31, Variation Mar 31, Mar 31, Variation 2007 2006 % 2007 2006 % (in millions of US$) (in millions of US$) United States 40.8 57.4 -28.8% 40.8 57.4 -28.8% Chile 34.3 37.5 -8.6% 34.3 37.5 -8.6% Brazil 41.7 34.7 20.1% 41.7 34.7 20.1% Mexico 23.3 30.5 -23.7% 23.3 30.5 -23.7% Venezuela 29.4 17.0 72.7% 29.4 17.0 72.7% Argentina 17.9 14.8 21.5% 17.9 14.8 21.5% Colombia 7.7 6.2 24.3% 7.7 6.2 24.3% Peru 6.7 5.0 35.3% 6.7 5.0 35.3% Ecuador 2.8 2.5 14.4% 2.8 2.5 14.4% Others 11.8 7.0 67.9% 11.8 7.0 67.9% Total 216.5 212.6 1.9% 216.5 212.6 1.9% Note: For rounding-up effects, the sum of the figures stated may differ from the total. The table below shows the percentage breakdown of consolidated sales by product export market for the periods indicated. Quarter ended Aggregate Mar 31, Mar 31, Mar 31, Mar 31, 2007 2006 2007 2006 United States 18.9% 27.0% 18.9% 27.0% Chile 15.8% 17.7% 15.8% 17.7% Brazil 19.3% 16.3% 19.3% 16.3% Mexico 10.8% 14.4% 10.8% 14.4% Venezuela 13.6% 8.0% 13.6% 8.0% Argentina 8.3% 6.9% 8.3% 6.9% Colombia 3.6% 2.9% 3.6% 2.9% Peru 3.1% 2.3% 3.1% 2.3% Ecuador 1.3% 1.2% 1.3% 1.2% Others 5.4% 3.3% 5.4% 3.3% Total 100% 100% 100% 100% Note: For rounding-up effects, the sum of the figures stated may differ from the total. Sales by Product: The table below shows a breakdown of the Company's consolidated sales by type of product for the periods indicated. Quarter ended Aggregate Mar 31, Mar 31, Variation Mar 31, Mar 31, Variation 2007 2006 % 2007 2006 % (in millions of US$) (in millions of US$) MDF 86.3 73.0 18.2% 86.3 73.0 18.2% Particle Boards 48.9 44.7 9.5% 48.9 44.7 9.5% Finger-joint mouldings 18.6 21.9 -15.0% 18.6 21.9 -15.0% Sawn Wood 14.1 18.9 -25.3% 14.1 18.9 -25.3% MDF mouldings 11.2 13.6 -17.7% 11.2 13.6 -17.7% OSB 10.1 16.5 -38.7% 10.1 16.5 -38.7% Saw Lumber 11.7 10.6 9.6% 11.7 10.6 9.6% Solid Wood Doors 8.5 9.1 -6.9% 8.5 9.1 -6.9% Others Products 7.1 4.2 69.7% 7.1 4.2 69.7% Total 216.5 212.6 1.9% 216.5 212.6 1.9% Note: For rounding-up effects, the sum of the figures stated may differ from the total. The table below shows a breakdown of the cubic meters sold by type of product, related to the consolidated sales of the Company's main products for the periods indicated. Quarter ended Aggregate Mar 31, Mar 31, Variation Mar 31, Mar 31, Variation 2007 2006 % 2007 2006 % (thousands of m3) (thousands of m3) MDF 229.9 245.1 -6.2% 229.9 245.1 -6.2% Particle Boards 179.5 190.4 -5.7% 179.5 190.4 -5.7% Finger-joint mouldings 44.9 49.7 -9.7% 44.9 49.7 -9.7% Sawn Lumber 62.7 92.7 -32.4% 62.7 92.7 -32.4% MDF mouldings 27.3 36.4 -24.8% 27.3 36.4 -24.8% OSB 45.8 72.1 -36.5% 45.8 72.1 -36.5% Saw Logs 372.8 382.0 -2.4% 372.8 382.0 -2.4% Solid Wood Doors 8.7 10.2 -15.0% 8.7 10.2 -15.0% Others Products 241.5 199.7 20.9% 241.5 199.7 20.9% Total 1,213.1 1,278.4 -5.1% 1,213.1 1,278.4 -5.1% Note: For rounding-up effects, the sum of the figures stated may differ from the total. Breakdown of Production Costs: The table below shows a percentage breakdown of the average consolidated production costs for bare (without melamine) particleboards, MDF and OSB, for the periods indicated. Quarter ended Aggregate Mar 31, Mar 31, Mar 31, Mar 31, 2007 2006 2007 2006 Chemicals 35.1% 35.8% 35.1% 35.8% Wood 23.8% 23.3% 23.8% 23.3% Depreciation 8.9% 10.8% 8.9% 10.8% Energy 8.7% 8.4% 8.7% 8.4% Personnel 7.9% 7.6% 7.9% 7.6% Others 15.5% 14.0% 15.5% 14.0% Total 100.0% 100.0% 100.0% 100.0% Note: For rounding-up effects, the sum of the figures stated may differ from the total. The table below shows a percentage breakdown of the average consolidated production costs for doors, finger-joint mouldings and sawn lumber, for the periods indicated. Quarter ended Aggregate Mar 31, Mar 31, Mar 31, Mar 31, 2007 2006 2007 2006 Wood 35.1% 37.8% 35.1% 37.8% Personnel 23.7% 23.2% 23.7% 23.2% Services 13.0% 13.1% 13.0% 13.1% Materials and Raw Materials 7.6% 9.0% 7.6% 9.0% Depreciation 7.4% 7.5% 7.4% 7.5% Energy 3.5% 3.1% 3.5% 3.1% Others 9.8% 6.3% 9.8% 6.3% Total 100.0% 100.0% 100.0% 100.0% Note: For rounding-up effects, the sum of the figures stated may differ from the total. MASISA S.A. AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS Aggregate CONSOLIDATED INCOME STATEMENTS Mar 31, Mar 31, 2007 2006 (in thousands of US$) Operating Income 216,513 212,575 Operating Costs (less) (163,049) (165,232) OPERATING MARGIN 53,464 47,343 Selling and Administrative Expenses (less) (30,807) (28,072) OPERATING INCOME 22,657 19,271 Financial Income 826 1,536 Financial expenses (less) (8,500) (10,558) Net financial expenses (7,674) (9,022) Net income related company investments 19 153 Loss related company investments (less) 0 0 Net earnings related company investments 19 153 Other non-operating income 307 298 Other non-operating expenses (less) (7,743) (3,182) Amortization of goodwill (less) (21) (21) Currency correction 111 165 Exchange differences (1,782) (502) NON-OPERATING INCOME (16,783) (12,111) Income before income taxes and extraordinary items 5,874 7,160 Income tax (8,326) (9,826) Extraordinary items 0 0 Net Income (loss) before minoritary interest (2,452) (2,666) Minoritary interest 4,552 2,694 Net Income (loss) 2,100 28 Amortization of negative goodwill 1,136 1,139 NET INCOME (LOSS) FOR THE PERIOD 3,236 1,167 Note: For rounding-up effects, the sum of the figures stated may differ from the total. MASISA S.A. AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS Aggregate CONSOLIDATED BALANCE Mar 31, Mar 31, 2007 2006 (in thousands of US$) ASSETS CURRENT ASSETS: Cash and equivalents 7,724 13,927 Time deposits 30,868 85,473 Negotiable securities (net) 12,249 10,856 Sales debtors (net) 136,531 121,242 Documents receivables (net) 9,245 12,690 Sundry debtors (net) 26,654 18,948 Documents and accounts receivables to related companies 6,964 6,096 Inventories (net) 198,637 207,189 Recoverable taxes 61,703 60,693 Anticipated paid expenses 9,042 9,841 Differed taxes 5,316 2,430 Other current assets 2,771 6,340 Total Current assets 507,704 555,725 FIXED ASSETS: Lands 142,894 131,997 Construction and infrastructure works 220,343 211,076 Machinery and equipments 849,473 830,624 Others fixed assets 759,019 670,928 Higher value for technical reappraisal of fixed assets 7,390 7,390 Depreciation (less) (431,845) (386,903) Total Fixed assets 1,547,274 1,465,112 OTHERS ASSETS: Related company investments 4,385 4,212 Other company investments 201 205 Lower value of investments 1,144 1,228 Higher value of investments (less) (57,102) (61,876) Long term debtors 5,615 5,519 Long term documents and accounts receivable to related companies 0 0 Long term differed taxes 0 0 Intangibles 1,126 121 Amortization (less) -214 -21 Others 27,770 30,023 Total Others Assets (17,075) (20,589) TOTAL ASSETS 2,037,903 2,000,248 Note: For rounding-up effects, the sum of the figures stated may differ from the total. MASISA S.A. AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS Aggregate CONSOLIDATED BALANCE Mar 31, Mar 31, 2007 2006 (in thousands of US$) LIABILITIES CURRENT LIABILITIES: Short term obligations with banks and financial institutions 71,569 51,412 Long term obligations with banks and financial institutions - short term portion 63,497 55,051 Obligations to the public - short term portion (bonds) 36,443 32,261 Long term obligations with one-year maturity 0 0 Dividends payable 467 561 Accounts payable 65,057 58,063 Documents payable 831 822 Sundry creditors 3,032 2,138 Documents and accounts payable to related companies 9,524 3,566 Provisions 31,543 19,994 Retentions 14,464 18,346 Income tax 10,956 10,258 Incomes received in advance 26 759 Others current liabilities 271 539 Total Current Liabilities 307,680 253,770 LONG TERM LIABILITIES: Obligations with banks and financial institutions 161,709 219,622 Long term obligations to the public (bonds) 272,253 297,978 Long term sundry creditors 67 227 Long term provisions 1,661 1,422 Long term differed taxes 77,487 45,523 Others long term liabilities 19,535 22,225 Total Long Term Liabilities 532,712 586,997 MINORITARY INTEREST: 15,362 22,665 NET WORTH: Paid in capital 812,880 813,846 Capital revalorization reserve 0 0 Overpricing in sale of treasury shares 0 0 Other reserves 212,052 185,816 Retained earnings 157,217 137,154 Future dividend reserves 51,424 51,424 Earnings aggregate 102,557 84,563 Loss aggregate (less) 0 0 Net income (loss) for the period 3,236 1,167 Provisory Dividends (less) 0 0 Aggregate deficit for development period 0 0 Total Net Worth 1,182,149 1,136,816 TOTAL LIABILITIES 2,037,903 2,000,248 Note: For rounding-up effects, the sum of the figures stated may differ from the total. MASISA S.A. AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS Aggregate CASH FLOW STATEMENT - DIRECT Mar 31, Mar 31, 2007 2006 (in thousands of US$) FLOW ORIGINATED BY OPERATING ACTIVITIES: Sales debtors collection 310,957 230,721 Financial income received 2,039 1,668 Dividends and other distributions received 0 0 Other incomes received 7,830 4,520 Supplier and personnel payment (less) (274,716) (202,366) Interests paid (less) (2,269) (15,442) Income tax paid (less) (2,664) (4,201) Other expenses paid (less) (519) (788) VAT and similar others paid (less) (10,074) (11,099) Net Flow Originated by Operating Activities 30,584 3,013 FLOW ORIGINATED BY FINANCING ACTIVITIES: Payment shares placement 0 44,011 Loans granted 37,444 115,236 Obligations to the public 0 172,720 Documented loans to related companies 0 0 Others loans granted to related companies 0 0 Other financing sources 0 877 Dividend payment (less) 0 0 Capital distribution (less) 0 0 Loan payment (less) (43,388) (116,582) Obligations to the public payment(less) 0 (151,893) Documented loans to related companies payment (less) 0 0 Others loans granted to related companies payment (less) (480) (344) Emission and share placement expenses payment (less) 0 0 Emission and obligations to the public placement expenses payment (less) 0 (4,243) Others financing disbursements (less) 0 0 Net Flow Originated by Financing Activities (6,424) 59,782 FLOW ORIGINATED BY INVESTMENT ACTIVITIES: Fixed asset sales 0 1,615 Permanent investment sales 0 0 Other investment sales 874 195 Documented loans to related companies collection 0 0 Other loans to related companies collection 0 0 Others investment income (508) 0 Fixed assets incorporation (less) (18,795) (18,130) Capitalized interests payment (less) (1,085) (1,152) Permanent investments (less) 0 (24,340) Financial instrument investments (less) (835) 0 Documented loans to related companies (less) 0 0 Others loans to related companies (less) 0 Others investment disbursements (less) 0 0 Net Flow Originated by Investment Activities (20,349) (41,812) TOTAL NET FLOW FOR THE PERIOD: 3,811 20,983 Inflation effect over cash and cash equivalents (19) (6,212) Net Variation of cash and cash equivalents 3,792 14,771 Initial balance of cash and cash equivalents 47,049 97,858 FINAL BALANCE OF CASH AND CASH EQUIVALENTS 50,841 112,629 Note: For rounding-up effects, the sum of the figures stated may differ from the total. MASISA S.A. AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS Aggregate FLOW-INCOME CONCILIATION Mar 31, Mar 31, 2007 2006 (in thousands of US$) ASSET SALE INCOME 3,236 1,167 Asset sale income: (Net Income) Loss in fixed asset sales 28 (51) Net Income in investment sales (less) 0 0 Loss in investment sales 0 0 (Net Income) Loss in others asset sales 0 0 Asset sales income 28 (51) CHARGES (INCOME) TO INCOME WHICH DOES NOT REPRESENT CASH FLOW Depreciation for the period 12,232 12,590 Intangibles amortization 98 162 Punishments and provisions 3,688 3,517 Net income paid for investments in related companies (less) 19 (153) Loss paid for investments in related companies 0 0 Amortization of goodwill 21 21 Amortization of negative goodwill (less) (1,136) (1,139) Net currency correction (111) 0 Net exchange difference 1,782 337 Other income to income which does not represent cash flow (less) (2,848) 0 Other charges to income which does not represent cash flow 4,048 7,025 Cargos (Charges) to income which does not represent cash flow 17,793 22,360 VARIATION OF ASSET WHICH AFFECT CASH FLOW: Sale debtors (11,085) (21,238) Inventories 1,486 7,984 Other assets (16,903) (12,046) Variation of assets which affect cash flow increase (decrease) (26,502) (25,300) VARIATION OF LIABILITIES WHICH AFFECT CASH FLOW Accounts payable related to operating income 23,705 (3,056) Interests payable 1,298 249 Income tax payable (net) 2,614 2,642 Other accounts payable related to non operating income 5,901 1,722 VAT and similar others payable (net) 7,063 5,974 Variation of liabilities which affect cash flow increase (decrease) 40,581 7,531 Net income (Loss) of minoritary interest (4,552) (2,694) NET FLOW ORIGINATED BY OPERATING ACTIVITIES 30,584 3,013 Note: For rounding-up effects, the sum of the figures stated may differ from the total. 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. For further information, please contact: Investor Relations, (56 2) 350 6038, , Internet: http://www.masisa.com/ DATASOURCE: Masisa S.A. CONTACT: Investor Relations, Masisa, +011-562-350 6038, Web site: http://www.masisa.com/

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