The reduction in consolidated turnover was, therefore, due to a combination of reduced sales volumes (-0.8 % below 1Q 2013) and lower average selling prices (-1.4% when compared to 1Q 2013). When compared to previous quarter, consolidated turnover increased by 5%, not only due to improved sales volumes, but also as a consequence of a small positive development in the average selling prices.
Recurrent EBITDA in 1Q 2014 was of Euro 16 million, implying a recurrent EBITDA margin of 5.2%, down by 1.6 p.p. when compared to 1Q 2013 and by 0.8 p.p. versus last quarter. Non-recurrent EBITDA items totalled Euro 5 million in the quarter and were mainly related with costs associated with discontinued sites. As result, total EBITDA for the quarter was of Euro 11 million.
“During the 1Q 2014 we have been able to take important steps to meet our strategy of reducing our industrial footprint, concentrating activity on our most competitive plants, and streamlining our central organization. In France, we have completed the sale of two plants, Le Creusot and Auxerre and are in advanced stages of completing the downsizing of our central office in Paris. In Germany, we are making good progress in the closure of our raw particleboard and melamine operations at our Horn plant. In addition, we have commenced work on the planned strategic investments in Nettgau (melamine line and recycling cleaning equipment) and Oliveira do Hospital (new melamine line).
“From an underlying business perspective, 1Q 2014 continued to be a challenging period in most of the markets in which we operate. Performance was particularly affected by a strong seasonal effect of higher wood costs, driven by weather conditions and increased demand for wood for alternative energy use. These factors led to a reduction in our operational profitability when compared to the same period of 2013,” said Rui Correia, CEO Sonae Indústria.
Sonae Indústria is one of the largest wood based panels producers in the world. The product range includes: particleboard; MDF (Medium Density Fibreboard); hardboard; OSB (Oriented Strand Board).
