Chile forestry firm CMPC beats forecasts as costs shrink
SANTIAGO Aug 14 (Reuters) - Chilean wood and paper group Empresas CMPC reported improved earnings and margins in the second quarter on Thursday, beating market forecasts as production costs fell.
CMPC, one of Latin America's biggest forestry companies, reported net profit of $91.8 million in the April to June quarter, helped by a lower tax bill and well above both last year's $31.0 million and analyst predictions of $74 million, according to a Reuters poll.
Earnings before interest, tax, depreciation and amortisation were $244 million, up 10 percent on a year ago, with reduced costs shoring up margins and making up for a slip in sales.
The company said sales of paper and cardboard had fallen in Chile, where the economy is decelerating, but exports had partly compensated.
CMPC products include wood, plywood, cellulose used for paper, cardboard, tissue and boxes.
Shares in the company fell 1 percent at the market open on Thursday to 1,418 pesos, having risen 7 percent since the start of the week and valuing CMPC at around $6.2 billion. (Reporting by Rosalba O'Brien; Editing by Meredith Mazzilli)
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