May 29, 2012. /Lesprom Network/. Arauco’s consolidated sales for the 1Q 2012 reached $1,010.4 million, 2.5% lower than the $1,036.7 million obtained during the 4Q 2011, mainly due to lower sales of pulp and forestry which decreased 4.9% and 28.7%, respectively. Compared to the $1,041.7 million obtained in the 1Q 2011, consolidated sales were 3% lower during the 1Q 2012, as the company said in a press release received by Lesprom Network. During the 1Q 2012, production volume increased 1.6% in pulp division, while production volume in panel and sawn timber division decreased 21.1% and 3.4%, respectively, when compared with the 4Q 2011. Consolidated adjusted EBITDA for the 1Q 2012 was $191.6 million, 47.4% lower than the $364.6 million reached during the previous quarter. The main reason of this decrease can be explained by the insurance claim received in November 2011, that corresponded to the balance of the total claim related to the February 27th, 2010 earthquake event. Consolidated adjusted EBITDA for the 1Q 2012 was 42.3% lower than the $332 million reached in the same period of 2011. Arauco’s consolidated operating income during the 1Q the year reached $77.7 million, an increase of 61.2% or $29.5 million compared to the $48.2 million obtained during the 4Q 2011. This is explained mainly by higher gross profit of 4.6% or U.S. 12.4 million and lower Distribution Costs and Administrative Expenses of 3.8% or $4 million and 11.3% or $13.1 million, respectively. Net income for the 1Q 2012 reached $52.1 million, a decrease of 71.1% or $127.8 million compared to the $179.9 million obtained in the 4Q 2011. This is mainly explained by a 77.5% or $212.6 million decrease in other operating income. Compared to the $176.5 million obtained in the 1Q 2011, consolidated net income was 70.5% lower during the 1Q 2012, mainly due to a 29.8% or $118.5 million decrease in gross margin. Celulosa Arauco y Constitución S.A. (Arauco) is one of the major forestry companies in Latin America. It provides employment for more than 35 thousand people, through its industrial operations in Chile, Argentina and Brazil, in addition to its network of sales offices around the world.