UPDATE 1-Chile’s Copec Q1 profit falls 8.2 percent yr/yr
April 30th, 2008 | by admin |(Adds details from third paragraph)
SANTIAGO, April 30 (Reuters) - Chilean industrialconglomerate Copec COP.SN said on Wednesday its first-quarterearnings fell 8.2 percent compared with the same period a yearago, as the weak dollar offset increased sales volumes andhigher prices for wood pulp.
Copec, Chile’s largest wood pulp producer, said it hadfirst-quarter profit of 122.30 billion pesos ($279 million),compared with 133.27 billion pesos in the January-March periodlast year.
Revenue for the period jumped 36 percent to 1.774 trillionpesos ($4.05 billion), on increased sales volumes and higherprices.
Operating income (EBIT) fell to 155.9 billion pesos from188.02 billion. Wood pulp unit Celulosa Arauco accounted for110.27 billion pesos of operating income, followed by fuel unitCOPEC SA with 36.30 billion pesos.
“The decline in the period is due primarily to the effectof the exchange rate on forestry sector figures. This wasoffset in part by bigger volumes sold and higher forestryproduct prices, along with growth in volumes in fuels,” it saidin an earnings statement.
The dollar had depreciated by about 19 percent against thepeso in the 12 months through the end of March.
Copec is among the world’s five largest wood pulp exportersand although pulp accounts for about one quarter ofconsolidated sales, it contributes about two thirds of Copec’sbottom line.
Celulosa Aruaco, Copec’s wood pulp unit, contributed 82.04billion pesos to the bottom line in the first quarter, downfrom 96.1 billion pesos, but dollar-denominated profits for theunit rose to 187.4 million from 164.9 million.
