Oct 31, 2005. /Lesprom Network/. CMPC net income for the third quarter 2005 reached $60 million, representing an 18% increase when compared to the previous quarter. Although there was a reduction in EBITDA, lower taxes and financial expenses resulted in higher net income. Total revenues reached $487 million, 1% lower than in the previous quarter, but 7% higher than the same period of the previous year. During third quarter 2005 a decrease in pulp and paper sales volume stands out along with lower pulp sale prices. This was partially offset by higher tissue sales volume as well as higher prices in the tissue and paper products businesses. The forestry and wood business showed a slight increase in sales during this period. Although the average sales price registered a 2% fall, mainly driven by lower sawn wood (-4%) and remanufactured wood export prices (-8%); it was offset by a rise in sales volume (+3%), mainly in sawing logs (+3%) and sawn wood (+2%). Pulp sales decreased 15% (-$19 million) during third quarter 2005 compared to second quarter 2005. This decline was due to lower sales volume (-10%), in both softwood (-9%) and hardwood (-10%). The reduction in volume is basically due to a comparison base effect after an unusually high quarter because of the delay of a shipment from the first quarter to the second one. The average pulp price suffered a slight depression (-2%), reaching CIF $485/tonne and CIF $527/tonne for softwood and hardwood respectively. In this period, hardwood pulp sales price continued to be above that of softwood pulp, reaching a $42/tonne spread between both fibers. Paper business during third quarter 2005 registered a 2% decrease in consolidated sales (-$3 million) with respect to second quarter 2005 due to lower sales volume (-2%) especially in boxboard. On the other hand, the average sales price increased 2%. A breakdown of the different paper grades in this business shows that Newsprint volumes registered a 3% increase while its price rose 5%. Boxboard volumes decreased 14% explained by the Maule mill stoppage during August and part of September, whereas prices increased 3% in response to internal market price increments (+10%). Finally, packaging paper volumes registered an 11% increase driven by a rise in both, the internal (+12%) and export markets (8%); on the other hand, prices fell 1%. Tissue business, including operations in Chile, Argentina, Peru, Uruguay and Brazil saw a 10% increase in sales (+$11 million) during the 3Q05. The tissue average price measured in dollars increased 4%, whereas those of Feminine Care Products (FCP) and diapers rose 9%. Tissue sales volume, as well as diapers and FCP volumes increased 5%. Paper products business during third quarter 2005 experienced a 7% increase (+$4 million) in sales compared to second quarter 2005. This is mainly due to the seasonality of this business (start of the fruit exports high season in Chile) resulting in higher sales volume (+2%), especially in corrugated boxes (+7%). The average paper products sales price increased 5%. Established in 1920, Empresas CMPC has been a pioneer in pulp and paper manufacturing in Chile. More than 80 years of experience in the industry guarantee CMPC’s operation in the forestry, pulp, paper, folding boxboard, tissue products, newsprint, multiwalled paper sacks, corrugated cardboard boxes, school notebooks and office stationery businesses, participating in more than 50 countries throughout the five continents.