4Q16 Press Release

Eucatex’s recurring net income grows 140.0% in 2016
São Paulo, March 22, 2017 – Eucatex (BM&FBovespa: EUCA3 and EUCA4), one of the largest manufacturers of panels in Brazil, with operations also in the paint and varnish, laminated flooring, partitions and doors segments, registered recurring net income of R$53.5 million in 2016, up 140.0% from the previous year. The increase is due to strategy adopted by the Company since the beginning of the economic crisis to increase exports and reduce expenses and costs.

Last year, exports grew 41.9% in volume and 22.9% in net revenue. According to the Executive Vice President and Investor Relations Officer, José Antônio Goulart de Carvalho, the ongoing export growth reflects the success of the strategy adopted by Eucatex two years ago. “Since 2015, the Company has been preparing for the economic recovery and export growth, by modernizing and adjusting its product lines, cutting costs and investments, in order to preserve the Company during this still-challenging period,” said the executive.

Export performance was driven by increased sales of T-HDF/MDF and MDP, which represented only a small fraction of the Company’s exports until 2014.  In the following year, they already accounted for a more significant share of the export mix, and continued to gain significance throughout 2016. Sales in the Company’s Wood segment, combining domestic and export markets, declined by 2.5%, impacted by lower domestic sales. Paint sales contracted 3.7% in 2016 compared to 2015, considering that the market as a whole contracted by 5.7% in the year, according to the Brazilian Paint Manufacturers Association (Abrafati). Eucatex’s net revenue from this business segment grew 2.5% in the year, due to the higher prices (+6.4%) compared to 2015.  In 2016, total net revenue was stable at R$ 1,144.5 million compared to R$1,143.3 million in 2015.

In the final quarter of 2016, Eucatex’s recurring net income amounted to R$14.0 million, up 182.9% compared to the same period in 2015. Net revenue reached R$284.5 million, down 1.7%.

About Eucatex
Eucatex S.A. Indústria e Comércio completed 65 years in 2016 and is one of Brazil’s largest manufacturers of flooring, wall partitions, doors, MDP/MDF/T-HDF panels, fiberboard, and paints and varnishes. It operates five modern plants in Botucatu and Salto (both in São Paulo) and Cabo de Santo Agostinho (Pernambuco), employing 2,486 people. Its products are exported to more than 37 countries. For more information, visit ri.eucatex.com.br.
Last updated on 22 of March of 2017