Duratex profits plunge but company remains optimistic
23 September 2014Leading Brazilian panel maker Duratex saw its net profit for Q2, 2014 plunged 56.4% due to a weak economy and furniture industry de-stocking prior to the World Cup holidays.
Sao Paulo-based Duratex reported net income more than halved from US$56m in the same period last year to just US$25m between April and June 2014. Its net revenue for the period was down by 1.5% to nearly US$410m.
However, the firm remains optimistic, predicting a pick-up in sales during the second half of this year, though it could not gauge "the strength of such a trend" because of continuing uncertainty over the short-term macro-economic picture.
Duratex was confident the business environment would be more favourable because of the low level of inventories in the supply chain and the likely increased focus of furniture retailers on sales.
The group's wood division was "significantly affected" by the lack of economic activity in Brazil and it was forced to adjust production plans, reducing labour levels, although shipment levels remained stable at 592,400m3 against 599,700m3 in Q1.
Duratex installed a new low pressure panel lamination line at its Uberaba plant in the quarter.
