Compared to the $1,010.4 million obtained in the 1Q 2012, consolidated sales were 17.0% higher, mainly explained by a 47.8% increase in total sales of its panels business and a 5.5% increase in sales from its pulp business.
Consolidated Adjusted EBITDA for the 1Q 2013 was $236. 2 million, 12.4% lower than the $269.7 million reached during the previous quarter. This decrease can be explained by the net proceeds from insurance claims received the previous quarter, that corresponded to the balance of the total claim related to the fire at its Nueva Aldea´s plywood mill and to the claim of the turbo generator stoppage event at the Valdivia Mill.
Also the consolidated Adjusted EBITDA decrease can be explained by higher gains on sales of fixed assets during the 4Q 2012. However, during this 1Q of the year the company achieved an increase in EBITDA in Forestry, Panels and Pulp divisions of 51.2%, 22.0%.
Consolidated Adjusted EBITDA for the 1Q 2013 was higher by 23.8% or $45.4 million than the $190.9 million reached in the same period of 2012.
Arauco’s consolidated operating income during the 1Q of the year reached $98.9 million, an increase of 215.7% or $67.6 million compared to the $31.3 million obtained during the 4Q 2012.
This is explained mainly due to an increase in Gross Margin by 15.4% or $44.8 million and a decrease in Selling and Administrative Expenses by 8.8% or $22.8 million. As a percentage of revenues, our Selling and Administrative Expenses decreased to 20.0% when compared to the previous quarter that reached 21.6% of total revenues.
During the 1Q 2013, Arauco’s operating income was 27.2% or $21.2 million higher than the $77.7 million reached in the same quarter of 2012. This is mainly due to an increase in Gross Margin by 17.5% or $50.1 million and partially offset by an increase of 13.9% or $28.9 million in Selling and administrative expenses.
In terms of costs, during the 1Q of the year we had a decrease in unitary cost of sales for bleached softwood pulp and bleached hardwood pulp of 6.2% and 7.7% respectively, when compared to the 4Q 2012.
Net income for the 1Q 2013 was $93.5 million, an increase of $11.8 million compared to the $81.7 million obtained in the 4Q 2012. This is mainly explained by an increase in Operating income of 215.7% or $67.6 million and a decrease of 34.4% or $29.3 million in financial costs. This was partially offset by a decrease of 47.4% or $67.2 million in Other operating income and a lower participation in profit in associates and joint ventures accounted through equity method of 77.4% or $14.6 million.
Compared to the $52.1 million obtained in the 1Q 2012, consolidated net income was $41.5 million higher during the 1Q 2013, mainly explained by a 16.8% or $121.8 million decrease in costs of sales.
Arauco is one of the major forestry businesses in Latin America in terms of forest ownership, plantations performance and manufacture of market woodpulp, sawn timber and panels.