UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
FORM 6-K
 
Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934

For the month of February 2008
 
   
Masisa S.A.
(Exact name of registrant as specified in its charter)

Masisa S.A.
(Translation of Registrant's name into English)


Av. Apoquindo 3650, Piso 10, Las Condes
Santiago, Chile
(Address of principal executive offices)


Indicate by check mark whether the registrant files or will file annual reports under cover
Form 20-F or Form 40-F.

Form 20-F x Form 40-F o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ____

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ____

Indicate by check mark whether the registrant by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under Securities Exchange Act of 1934.

Yes o No x

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-_____


Item 1. Earnings release issued by Masisa S.A. on February 20, 2008:

For further information, please contact:
Investor Relations
 
(56 2) 350 6038
 
investor.relations@masisa.com
 
Internet: www.masisa.com

PRESS RELEASE
MASISA S.A. POSTS FINANCIAL RESULTS AS OF DECEMBER 31, 2007

Santiago, Chile, February 20, 2008 - MASISA S.A. (NYSE: MYS) (hereinafter referred to as “Masisa” or “the Company”), a leading wood board for furniture manufacturing and marketing company in Latin America, today posted its consolidated financial statements for the fourth quarter of 2007.

Q4’0 7   HIGHLIGHTS
    
·
Sales in the fourth quarter of 2007 amounting to US$259.7 million, they were 16.6% up on the same period of 2006, driven by higher prices of wood boards for furniture (MDF and PB), which offset the lower sales of MDF and finger joint mouldings and sawn wood, mainly due to the slowdown of the housing sector in the United States.
   
·
The gross margin on sales improved, from 24.2% to 26.9% compared with the same quarter in 2006, mainly driven by the Company’s ability to rice prices above its cost increases, specially in the wood boards business. Also, the Company has been successful in its commercial efforts of opening new markets such as Vietnam (for sawn lumber exports) and re-routing exports that were initially oriented to the United States towards other markets, which is specially true for OSB boards.
   
·
The ratio, of sales and administrative expenses to sales, improved in the fourth quarter of 2007, representing 15.3% of sales, which was lower than the fourth quarter of 2006 when they were for 16.1 % of sales, thus showing a more efficient operation.
   
·
Operating income increased by US$12.1 million (+66.6%) when compared to the same quarter in 2006, reaching to US$30.2 million, boosted by higher sales margins (as a result of successful commercial efforts).
   
·
Fourth quarter net income reached US$14.6 million, a 40.2% increase compared to the same quarter of 2006. This higher net income is the result of the good operational results that more than offset lower non operational results.
   
·
The Company´s solid operating performance is also reflected in an operating working capital to sales ratio for the period ended on December 31 of 2007, of 31.1%, down from 32.3% as of December 31, 2006.
   
·
On December 20, 2007, Masisa and Louisiana-Pacific (“LP”), executed a binding agreement for Masisa to sell to LP 75% its OSB plant located in Ponta Grossa, Brazil. The production capacity of such OSB plant is 350,000 cubic meters per annum. The price for the 100% of the fixed assets is approximately US$75,000,000, which is similar to the book value, thus this sale should not have significant earning effect. The proceeds will mainly be used to reducing indebtedness. Final closing is subject to due diligence, which is expected to be completed during the first quarter of 2008. Masisa’s decision to sell its OSB assets is aligned with its intention of focusing on its core business, which is PB and MDF wood boards for furniture in Latin America.
   
·
On January 15, 2008, Masisa and Brascan Brazil Ltda., executed a share purchase and sale agreement, whereby Masisa indirectly acquired, 37% of the shareholding of Tafisa Brazil S.A. Tafisa Brazil’s main line of business is the manufacturing of wood boards and owns an industrial plant in the state of Paraná, Brazil, with production capacities of 380,000 m 3 of MDF, 260,000 m 3 of MDP and 300,000 m 3 of melamine boards. The price was US$70,000,000. The ultimate controller of Tafisa is Sonae Indústria, SGPS, S.A., a Portuguese publicly-traded corporation. Additionally, Sonae Indústria and Masisa have committed to work in the implementation of the combination of the businesses of Tafisa Brazil and of Masisa do Brazil Ltda. with the objective of positioning the combined entity as a leading company in the Brazilian market.
 
   
Quarter ended
 
   
Dic 31,
 
Mar 31,
 
Jun 30,
 
Sep 30,
 
Dic 31,
 
   
2006
 
2007
 
2007
 
2007
 
2007
 
   
(in millions of US$, except per share information in %)
 
 
 
 
 
 
 
 
 
 
     
Sales
   
222.7
   
216.5
   
241.9
   
247.7
   
259.7
 
Gross margin
   
53.9
   
53.5
   
57.7
   
62.2
   
69.9
 
% over sales (2)
   
24.2
%
 
24.7
%
 
23.9
%
 
25.1
%
 
26.9
%
Selling and Administrative Expenses
 
 
(35.8
)
 
(30.8
)
 
(32.6
)
 
(33.4
)
 
(39.7
)
% over sales (2)
   
-16.1
%
 
-14.2
%
 
-13.5
%
 
-13.5
%
 
-15.3
%
Operating Income
   
18.1
   
22.7
   
25.1
   
28.8
   
30.2
 
%over sales (2)
   
8.1
%
 
10.5
%
 
10.4
%
 
11.6
%
 
11.6
%
EBITDA (3)  
   
35.4
   
39.0
   
43.5
   
46.2
   
47.8
 
%over sales
   
15.9
%
 
18.0
%
 
18.0
%
 
18.7
%
 
18.4
%
Net Income for the Period
   
10.4
   
3.2
   
16.3
   
7.0
   
14.6
 
Earnings per Share (US$)
   
0.0018
   
0.0006
   
0.0029
   
0.0012
   
0.0026
 
Earnings per ADS (US$) (1)
   
0.09
   
0.03
   
0.14
   
0.06
   
0.13
 
(1): An ADS equals 50 common shares.
(2): As % of Sales for the quarter.
(3): EBITDA represents Operating Income + Depreciation + Amortization + Depletion.

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INDEX

Q4’07 HIGHLIGHTS
   
2
 
FINANCIAL OVERVIEW
   
2   
 
         
INDEX
   
3
 
         
Q4'07 EARNINGS' CONFERENCE CALL
   
4
 
         
CONSOLIDATED INCOME STATEMENT
   
5
 
NET SALES
    5     
OPERATING INCOME
   
7   
 
EBITDA
   
8   
 
NON-OPERATING INCOME
   
8   
 
NET INCOME
   
9   
 
         
CONSOLIDATED BALANCE SHEET
   
10
 
ASSETS
   
10   
 
LIABILITIES
   
10   
 
SHAREHOLDERS' EQUITY
   
12   
 
         
FINANCIAL OVERVIEW (TABLES)
   
13
 
FOURTH QUARTER AT DEC 2007
   
13   
 
ACCUMULATED AT FOURTH QUARTER OF 2007
   
13   
 
BREAKDOWN BY GEOGRAPHICAL SEGMENT (US$)
   
14   
 
SALES BY COUNTRY (%)
   
15   
 
SALES BY PRODUCT (US$ and M 3 )
   
16   
 
BREAKDOWN OF PRODUCTION COSTS
   
17   
 
         
CONSOLIDATED FINANCIAL STATEMENTS
   
18
 
STATEMENT OF INCOME AT DEC 2007
   
18   
 
BALANCE SHEET AT DEC 2007
   
19   
 
STATEMENT OF CASH FLOW AT DEC 2007
   
21   
 
CASH FLOW-NET INCOME RECONCILIATION
   
22   
 
         
FORECASTS AND ESTIMATES
   
23
 
 
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Masisa S.A Announces Conference Call to Discuss Q4 2007 Results

Masisa S.A. (NYSE:MYS) a leading Latin American producer of wood boards for furniture, will hold its quarterly conference call on Thursday February 21, 2008 at 9:00 a.m. New York Eastern Time. The Company will discuss results for the quarter ended December 31, 2007.

To participate on the conference call, please dial 888-680-0869 (domestic, USA) or 617-213-4854 (international) five to ten minutes before the call and reference the pass code 81192975. A simultaneous live Webcast of the call will be available over the Internet at http://www.masisa.com, under the Investor Relations heading.

Participants may pre-register for the call at anytime, including up to and after the call start time, at https://www.theconferencingservice.com/prereg/key.process?key=PYW696QJW . Pre-registrants will be issued a pin number to use when dialing into the live call, which will provide quick access to the conference.

A replay of the call will be available beginning on Thursday, February 21 2008 at 11:00 a.m. (New York Eastern Time) by dialing 888-286-8010 (domestic, USA) or 617-801-6888 (international) and providing the following replay code: 40705598. In addition, the Webcast will be available on the Company's web site at http://www.masisa.com.


CONTACT: Masisa S.A
Rodrigo Hahn
Investor Relations
(56 2) 707 8608
rodrigo.hahn@masisa.com

4 / 24
 
 
CONSOLIDATED INCOME STATEMENT

NET SALES

Q4´07 versus Q4’06
The Company had sales of US$259.7 million in the fourth quarter of 2007, representing a US$37.1 million (+16.6%) increase compared to the fourth quarter of 2006.

The main factors explaining this sales increase in the fourth quarter of 2007 compared with the same quarter in 2006, are:

Boards
·
MDF board sales were up by US$23.3 million (+26.5%), mainly driven by price increases across all markets (consolidated increase of +22.0%), except in Mexico, where prices dropped slightly (-4.1%) due to higher competition coming from the United States. The commercialized volume increased slightly to 256,000 cubic meters, partly due to the new MDF production line in Cabrero (Chile), which produced 20,633 cubic meters in the period. This new capacity is mainly oriented towards export markets. During this period, the Company continued improving its product mix, increasing its production of ultra-thin boards, which exhibit higher commercialization margins, and decreasing ultra-light boards for mouldings which have been negatively affected by the slowdown of the construction sector in the US.
·
Particleboard (PB) sales were also up and increased by US$ 6.3 million (+12.8%), largely due to a 17.9% price increase (equivalent to US$8.8 million), across most of the markets, namely in Brazil, Colombia, Argentina, Chile and Venezuela with rises of 13.8%, 27.6%, 22.1%, 23.1% and 10.9% respectively. This reflects the strong demand for PB in the region. The increase in prices offsets lower volumes sold (-4.3%), which are explained by: (i) a decrease of 9,000 m 3 (-23.9%) in Mexico due to lower product availability and to higher competition from wood boards coming from the United States and; (ii) a decrease of 3,300 m 3 (-31.9%) in Colombia due to lower product availability coming from Venezuela resulting from higher margins the Company obtains in the Venezuelan market and due to some export restrictions from Venezuela to Colombia. These exports are currently in transit and will be commercialized in the Colombian market during the next quarter.
·
OSB board sales continued showing a recovery, with an increase in sales of US$6.1 million (+71.6%), mainly resulting from successful re-routing of exports that were initially destined to the United States to other markets, mainly to China, and to other markets outside the Latin American region for US$4.7 million (+451.3%). Additionally, OSB sales in Brazil (the most. important market for Masisa’s OSB) increased by 70.9% compared to the fourth quarter of 2006, reaching total US$7.6 million.

Solid Wood
·
Finger joint mouldings sales were down US$3.6 million (-18.2%), mainly due to a 14.8% drop in prices in the United States along with a 5.8% decrease in volume in that market. This as a result of the contraction in the construction sector in the United States. MDF mouldings sales were down by US$4.9 million (-29.4%), driven by 29.3% decrease in volume in the US market. This volume reduction is part of the Company’s commercial strategy to assure the profitability of its exports, by sacrificing volume in order to maintain prices. Such volume was commercialized as MDF boards in Latin America, where demand was strong. The decrease in volume of both products not only results from a market condition, but also due to the fact that the Company has adjusted its production and commercialization in order to avoid margin deteriorations.
·
Solid wood doors had a slight decrease in sales by US$0.3 million (-2.7%), explained by a 6.4% decrease in volume sold, that was partly offset by 3.9% price increase. The volume decrease is mainly explained by some plant adjustments that affected the normal operations and a slight decrease in the home improvement market in the US.
·
Sawn lumber sales were up by US$4.3 million (+31.0%), which is explained by a 20.0% increase in volume along with a 9.2% price increase. The Company has been successful in replacing green lumber by dry lumber for the Mexican market and it has also been successful in diversifying markets.

5 / 24
   

Forestry
·
Higher saw log sales of US$0.9 million (+8.2), due to a 9.5% price increase which offsets a 1.2% decrease in volume.

Q4’07 versus Q3’07
The Company had sales of US$259.7 million in the fourth quarter of 2007, which were US$12.0 million (+4.9%) higher than the third quarter of 2007

The main changes in sales in the fourth quarter of 2007 compared with the third quarter of 2007 are:

Boards
·
MDF sales were up by US$8.1 million (+7.8%). This increase is explained by higher sales volumes in the period (+0.4%), along with a 7.4% consolidated price increase. This increase is mainly explained by favorable commercial conditions in all Latin American markets, where the Company is facing strong demand, specially in: (i) Brazil, with higher sales by US$3.9 million (+11.1%), due to an 4.3% increase in volume, and a 5.4% price increase, and; (ii) Venezuela, with higher sales by US$6.0 million (+23.1%), mainly explained by a 16.4% higher volume and a 5.7% higher price. Also, the increase in volume was partly due to the new MDF production line in Cabrero (Chile), which produced 20,633 cubic meters in the period. This new capacity is mainly oriented towards export markets. These higher sales volume, more than offset a 23.7% lower sales volume in Chile, due to lower sales to local moulders.
·
Particleboard (PB) sales increased by US$4.6 million (+8.9%) as a result of higher volume (+4.2%) along with a 4.5% price increase. Higher sales are mainly explained by: (i) higher sales in Chile by US$3.7 million (+19.6%), and ;(ii) higher sales in Venezuela of US$1.1 million (+26.3%), in both cases due to the high demand.
·
OSB sales were up by US$0.5 million (+3.3%), which is mainly explained by higher prices (+2.9%). The Company has continued with its successful strategy of re-routing OSB exports that were initially destined to the United States, to other markets, mainly to the local Brazilian market. Brazil had an increase in OSB sales of US$0.8 million (+11.0%), with higher volume (+5.3%) along with a price increase (+5.4%). There was a slight decrease of US$0.2 million (-4.4%) in OSB sales to markets outside the region, especially to China. However, we continue observing favorable commercial conditions, which as evidenced in a price increase of 1.5%.

Solid Wood
·
MDF mouldings sales were down by US$1.3 million (-10.0%) and finger joint mouldings sales decreased by US$1.3 million (-7.3%), in both cases mainly explained by the lower demand for these kind of products in the United States.
·
Sales of solid wood doors were down by US$0.7 million (-6.1%), due to a decrease in volume (-6.0%). This decrease in volume is explained by some plant adjustments that affected the normal operations and a slight decrease in the home improvement market in the US.
·
Sawn lumber sales decreased by US$0.2 million (-0.9%), due to a 2.3% decrease in volume, which offsets a 1.4% increase in price.

Forestry

·
Decrease in saw log sales of US$0.1 million (-1.1%), due to a 8.8% price decrease.

6 / 24
 
 
OPERATING INCOME

Q4’07 versus Q4’06
Operating income amounted to US$30.2 million in the fourth quarter of 2007, US$12.1 million (+66.6%) higher than in the fourth quarter of 2006.

Consolidated gross margin was US$69.9 million in the fourth quarter of 2007, an increase of US$16.0million (+29.7%) compared to the same quarter of the previous year. As a percentage of the Company’s total sales, the gross margin was higher, increasing from 24.2% in the fourth quarter of 2006 to 26.9% in the fourth quarter of 2007.

The main factors explaining this higher operating income in the fourth quarter of 2007 compared with the same quarter in 2006, are:

Boards
·
Operating income grew due to higher MDF and PB prices (+22.0% and +17.9%, respectively), coupled with higher MDF volume sales (+3.7%), which were partly offset by lower volume sales of PB (-4.3%). OSB sales recovered, showing a considerable 71.6% sales increase. The successful commercial efforts carried out by the Company, have enabled it to do a pass through, increased costs to prices and to diversify end markets (especially in OSB). In effect actions the Company more than offsets the strong rising cost scenario, especially in resins, wood and energy, which jointly account for approximately 66.6% of the total consolidated board manufacturing cost. This has enabled the Company to improve its consolidated gross margin as a percentage of the total consolidated sales.

Solid Wood
·
Operating income fell as a result of reduced sales of all the solid wood products (MDF mouldings, fingerjoint mouldings and solid wood doors) except in sawn lumber, which showed a 31.0% sales increase. This is explained by the slowdown in the United States construction sector, the main end market for Masisa. Despite of the Company’s commercial efforts, they have been insufficient to compensate for the cost pressures related to an increase in the wood price, greater logistical costs due to the higher oil price and the appreciation of the Brazilian real and the Chilean peso.

The sales and administrative expenses to sales ratio decreased from 16.1% in the fourth quarter of 2006 to 15.3% in the fourth quarter of 2007. Sales and administrative expenses amounted to US$39.7 million, and were US$3.9 million (+11.0%) higher than the fourth quarter of the previous year. The increase in sales and administrative expenses in the fourth quarter of 2007 are mainly explained by; (i) higher consolidated sales, thus, higher commercial costs; (ii) higher level of provisions due to a change and application of a new uncollectible accounts provisions policy (+US$0.7 million) and higher sundry provisions (+US$1.5 million) and; (iii) sawn lumber shipment re-routing expenses (+US$1.3 million).

Q4’07 versus Q3’07
The Company’s operating income amounted to US$30.2 million in the fourth quarter of 2007, an increase of US$1.4 million (+5.0%) compared to the third quarter of 2007.

Consolidated gross margin was US$69.9 million in the fourth quarter of 2007, an increase of US$7.7 million (+12.4%) compared to the third quarter of 2007. As a percentage of the Company’s total sales, gross margin reached 26.9%, higher than 25.1% in the third quarter of 2007.

The main factors explaining this higher operating income in the fourth quarter of 2007 compared with the third quarter of 2007 are:

Boards
·
Both PB and MDF benefited from price increases (+4.5% and +7.4% respectively), which enabled the Company to continue with a healthy consolidated gross margin. This more than offset the higher board production costs, mainly in energy (accounting for approximately 10.5% of the total board cost), wood (24.5% of the total board cost) and resins (31.5% of the total board cost).
 
7 / 24
 
 
Solid Wood
·
During the period, there was an operational improvement in finger joint mouldings, MDF mouldings and solid wood doors when compared to the third quarter of 2007. This was due to a decrease in production resulting from an adjustment in the productive factors given the slowdown in the US housing market. This led to a decrease in supply, which allowed price increases in all product lines ranging from 1.4% to 4.8% (except in solid wood doors which had stable prices) All these actions have allowed to limit the negative effects caused by: (i) the US market slowdown; (ii) appreciation of the Brazilian real (+3.9%) and the Chilean peso (+3.0%) against the US dollar, and; (iii) rising costs of wood and energy.

The sales and administrative expenses to sales ratio, increased from 13.5% during the third quarter of 2007 to 15.3% during the fourth quarter of 2007. Sales and administrative expenses amounted to US$39.7 million, and were US$6.3 million (+18.8%) up on the third quarter of 2007. The increase in sales and administrative expenses in the fourth quarter of 2007 are mainly explained by; (i) higher consolidated sales, thus, higher commercial costs; (ii) higher level of provisions due to a change and application of a new uncollectible accounts provisions policy (+US$0.7 million) and higher sundry provisions (+US$1.5 million) and; (iii) sawn lumber shipment re-routing expenses (+US$1.3 million).

EBITDA

Q4’07 versus Q4’06
In line with the increase in sales, mainly driven by the furniture board business (MDF and PB) and despite cost pressures, the Company’s EBITDA was up US$12.4 million (+35.2%), amounting to US$47.8 million. The EBITDA margin improved to 18.4% from 15.9% the prior year.

Q4’07 versus Q3’07
The Company had a higher operating cash flow generation (EBITDA) than that in the third quarter of 2007. The fourth quarter EBITDA was US$47.8 million, an increase of US$1.6 million (+3.5%). EBITDA margin remained relatively stable, reaching 18.4%.

NON-OPERATING INCOME

Q4’07 versus Q4’06
Non-operating income decreased by US$5.4 million (-53.3%) against the fourth quarter of 2006 amounting to -US$15.5 million. This is mainly explained by negative foreign exchange differences, which increased by US$6.9 million (-507.1%) from -US$1.4 million in the fourth quarter of 2006 to -US$8.4 million in the fourth quarter of 2007 and due to a decrease in financial income by -US$3.8 million (-77.4%). This negative effect was partially offset by lower interest expenses during the fourth quarter of 2007, which were down by US$4.8 million (-51.4%) from -US$9.3 million in the fourth quarter to -US$4.5 million in the fourth quarter of 2007. This is explained by :(i) decrease in the Libor rate and; (ii) better financing conditions obtained as a result of a bond refinancing in June 2007.
 
Q4’07 versus Q3’07
Non-operating income amounted to -US$15.5 million, a decrease of US$1.3 million on the -US$14.2 million of the third quarter of 2007. This is mainly explained by negative foreign exchange differences, which increased by US$2.7 million, from US$-5.7 million in the third quarter to -US$8.4 million on the fourth quarter and to an increase in other non-operating expenses in -US$3.8 million mainly explained by severance payments (-US$3,3 million) associated with the Solid Wood Business Unit. This negative effect is partially offset by lower financial expenses during the fourth quarter of 2007 which were down US$3.9 million (-46.1%) from -US$8.4 million in the third quarter to -US$4.5 million in the fourth quarter of 2007. This is explained by:(i) decrease in the Libor rate and; (ii) better financing conditions obtained as a result of a bond refinancing in June 2007.

8 / 24
 
 
NET INCOME

Q4’07 versus Q4’06
Net income amounted to US$14.6 million, which was up by US$4.2 million (+40.2%). This increase is explained by the better operating results that more than offset lower non operational results.

Q4’07 versus Q3’07
Net income was US$14.6 million which is an increase of US$7.6 million (+108.4%). This increase is explained by better operational results that more than offset lower non operational results.

9 / 24
   
 
CONSOLIDATED BALANCE SHEET

ASSETS (December 31, 2007 versus December 31, 2006)
The Company’s total assets amount to US$2,211.5 million as of December 31, 2007, which is a 9.7% year-on-year increase.

Current Assets
These amount to US$500.2 million, which is a US$24.8 million (+5.2%) increase on December 31, 2006. This increase is mainly explained by higher accounts receivable (+US$10.3 million), inventories (+US$26.7 million) and expenses paid in advance (+US$1.8 million), that offset the decrease in cash (-US$4.8 million), time deposits (-US$4.7 million) and recoverable tax (-US$4.6 million). Current assets mainly consist of cash and cash equivalents (time deposits and marketable securities) amounting to US$37.9 million, accounts receivable of US$135.4 million, inventories of US$212.5 million and recoverable taxes of US$57.7 million.

As of December 31, 2007, the Company had a suitable operating performance, compared with the same period in 2006:
                     
 
Q4’07
Q4’06
(i) Accounts Receivable Turnover (times) (*)
6.88
6.89
(ii) Inventory Turnover (times) (**)
3.61
3.48
(iii) Operating Working Capital/Sales (%) (***)
31.1
32.3
(*) Accounts Receivable Turnover corresponds to (TTM Sales / TTM Average Accounts Receivable).
(**) Inventory Turnover corresponds to (TTM Sales / TTM Average Inventories).
(***)Operating Working Capital/Sales corresponds to ((Accounts receivable + Documents receivable + Sundry debtors + Doc. & Accts. Receivable from related companies - Accounts payable - Documents payable - Sundry creditors - Doc. & Acct. Payable to related companies)/ TTM Sales)).

Fixed Assets
These amount to US$1,702.4 million, which was a US$145.1 million (+9.3%) increase on December 31, 2006. This increase is mainly explained by higher other fixed assets net of depreciation (+US$157.6 million), which is largely explained by the higher forestry asset appraisal (+US$90.5 million) and construction works of the new MDF plant (+US$66.9 million). This increase offset the drop in machinery and equipment net of depreciation (-US$30.8 million). Fixed assets mainly consist of machinery and equipment net of depreciation amounting to US$518.5 million and forestry plantations (stated in other fixed assets) of US$720.5 million.

The investment in fixed assets in the twelve-month period ending December 31, 2007, amounted to US$139.7 million, accounting for 177.8% of the depreciation in the period.

Other Assets
These amount to US$8.9 million, and improved on the -US$16.4 million of the fourth quarter of 2006.

LIABILITIES (December 31, 2007 versus December 31, 2006)
Total liabilities amounted to US$924.7 million, which was an increase of US$115.3 million (+14.2%) on the total liabilities as of December 31, 2006.

Banks
Masisa’s debt with financial institutions amounts to US$294.8 million, which was a US$5.5 million (+1.9%) increase on December 31, 2006. This is mainly explained by an increase in short term debt in (i) Brazil of US$23.8 million and (ii) Venezuela of US$2.4 million, due to increased working capital requirements and the financing of ongoing investments. This increase was partially offset by a debt reduction in Argentina of US$10.6 million and in Chile of US$ 10.1 million, which were financed with internally generated cash flows and long term debt respectively.

10 / 24
   
 
Bonds
Masisa´s bonds amount to US$349.8 million, which was a US$42.7 million (+13.9%) increase on December 31, 2006. This is mainly explained by (i) exchange differences of US$37.4 million and (ii) the placement of bond series F, G and H, for a total of UF (Unidad de Fomento) 2.5 million (approx. US$88.8 million). These funds were used for the refinancing of the Series A bond for UF 2.0 million (approx. US$71.0 million), and the pre payment of short term debt in Chile. The latter was partially offset by the payment of (i) US$4.8 million related to series E bonds and (ii) US$9.0 million from the Private Placement occurred during 2007.

Masisa S.A.’s Financial Debt Maturity Structure as of December 31, 2007

   

Note: The amounts may differ from the information submitted in the Uniformly Coded Statistical Record (FECU), due to the book appreciation of the bonds and to accrued and unpaid interest, which are included in the FECU.

The 2008 debt maturities include short term local loan payments of US$87.1 million in Venezuela, which have a 1-year term and which the Company has been systematically refinancing since the last few years, steadily improving the conditions.

11 / 24
   
 
SHAREHOLDERS’ EQUITY (December 31, 2007 versus December 31, 2006)
Masisa’s shareholders’ equity amounts to US$1,272.0 million as of December 31, 2007, which is an increase of US$85.6 million (+7.2%) on December 31, 2006.

Paid-in Capital
The paid-in capital amounts to US$812.9 million, unchanged when compared to that at December 31, 2006.

Other Reserves
These are US$276.5 million, which is an increase of US$57.1 million (+25.9%). This account is mainly the forestry reserve, which amounts to US$262.7 million. This increase is explained by a higher difference between the appraisal value of forestry plantations and their respective historical cost.

Retained Earnings
This amounts to US$182.6 million, which is an increase of US$28.6 million (+18.6%). This increase is explained by the higher accumulated net income, which rose by US$17.0 million (+23.3%). Such increase went hand in hand with a higher net income for the period ending on December 31, 2007, amounting to US$41.1 million against the US$29.5 million at December 31, 2006, i.e., an increase of US$11.6 million (+39.3%).
 
12 / 24
   

FINANCIAL OVERVIEW

Fourth quarter ended December 31, 2007:

The table below shows the Company’s main consolidated financial figures in the quarter and the year-on-year percentage change.

 
 
Quarter ended
 
 
 
Dec 31 st ,
 
Dec 31 st ,
 
Variation
 
 
 
2007
 
2006
 
%
 
 
 
(in millions of US$)
 
               
Sales
   
259.7
   
222.7
   
16.6
%
Gross Margin
   
69.9
   
53.9
   
29.7
%
Selling and Administrative Expenses
   
(39.7
)
 
(35.8
)
 
11.0
%
Operating Income
   
30.2
   
18.1
   
66.6
%
Net Income for the Period
   
14.6
   
10.4
   
40.2
%
 
             
Depreciation + Amortization
   
13.02
   
13.00
   
0.2
%
 
             
Depletion (1)
   
4.6
   
4.2
   
8.1
%
  EBITDA
   
47.8
   
35.4
   
35.2
%
Earnings per Share (US$) (2)
   
0.0026
   
0.0018
   
40.2
%
Earnings per ADS (US$) (2)
   
0.13
   
0.09
   
40.2
%
(1)
Corresponds to the sold/consumed saw log cost in the period which does not represent cash flow.
(2)
One ADS is equivalent to 50 common shares. The ADS of Masisa (former Terranova) started to be traded on August 5, 2005.
Note: For rounding-up effects, the sum of the figures stated may differ from the total.      
 
Twelve-month period ended December 31, 2007:

The table below shows the Company’s main consolidated financial figures for the quarter ended December 31, 2007 and the year-on-year percentage change.

 
 
Aggregate  
 
 
 
Dec 31 st ,
 
Dec 31 st ,
 
Variation
 
 
 
2007
 
2006
 
%
 
 
 
(in millions of US$)
 
               
Income
   
965.8
   
886.5
   
8.9
%
Gross Margin
   
243.3
   
207.6
   
17.2
%
Selling and Administrative Expenses
   
(136.5
)
 
(124.0
)
 
10.1
%
Operating Income
   
106.8
   
83.6
   
27.7
%
Net Income for the Period
   
41.1
   
29.5
   
39.3
%
 
             
Depreciation + Amortization
   
51.3
   
51.0
   
0.7
%
 
             
Depletion (1)
   
18.4
   
19.2
   
-3.8
%
   EBITDA
   
176.6
   
153.7
   
14.8
%
Earnings per Share (US$) (2)
   
0.0072
   
0.0052
   
39.3
%
Earnings per ADS (US$) (2)
   
0.36
   
0.26
   
39.3
%
 
(1)
Corresponds to the sold/consumed saw log cost in the period which does not represent cash flow.
(2)
One ADS is equivalent to 50 common shares. The ADS of Masisa (former Terranova) started to be traded on August 5, 2005.
Note: For rounding-up effects, the sum of the figures stated may differ from the total.
 
13 / 24
   
 
Information by Geographic Segment:
The table below describes the main company segments, according to the origin of sales for the indicated periods.
 
 
 
Quarter ended
 
Aggregate
 
 
 
Dec 31 st ,
 
Dec 31 st ,
 
Dec 31 st ,
 
Dec 31 st ,
 
 
 
2007
 
2006
 
2007
 
2006
 
 
 
(in millions of US$)
 
(in millions of US$)
 
 
 
 
 
 
 
 
 
 
 
Net Sales
 
 
 
 
 
 
 
 
 
Chile
   
90.7
   
89.2
   
333.9
   
321.4
 
Brazil
   
58.6
   
46.7
   
217.2
   
188.6
 
Venezuela
   
46.7
   
49.9
   
168.4
   
141.7
 
Mexico
   
23.2
   
33.3
   
90.1
   
124.8
 
USA
   
40.1
   
48.6
   
165.5
   
211.8
 
Argentina
   
39.9
   
32.1
   
144.8
   
122.4
 
Colombia
   
5.5
   
6.3
   
28.8
   
25.2
 
Peru
   
7.1
   
5.5
   
26.7
   
21.0
 
Ecuador
   
3.4
   
2.4
   
12.4
   
10.0
 
Others (1)
   
(55.5
)
 
(91.3
)
 
(222.2
)
 
(280.5
)
Total
   
259.7
   
222.7
   
965.8
   
886.5
 
 
                 
Gross Margin
                 
Chile
   
17.3
   
11.4
   
60.8
   
63.0
 
Brazil
   
15.1
   
7.5
   
53.8
   
38.1
 
Venezuela
   
17.4
   
3.5
   
50.2
   
22.6
 
Mexico
   
0.1
   
5.2
   
9.8
   
18.6
 
USA
   
2.4
   
3.3
   
7.4
   
17.1
 
Argentina
   
14.4
   
9.6
   
45.9
   
34.2
 
Colombia
   
1.0
   
1.3
   
5.8
   
5.6
 
Peru
   
1.6
   
1.4
   
6.8
   
5.3
 
Ecuador
   
0.6
   
0.7
   
2.9
   
3.0
 
Others (1)
   
0.0
   
10.0
   
0.0
   
0.0
 
Total
   
69.9
   
53.9
   
243.3
   
207.6
 
 
                 
Operating Income
                 
Chile
   
1.4
   
(4.7
)
 
6.0
   
15.6
 
Brazil
   
8.5
   
3.0
   
31.4
   
21.2
 
Venezuela
   
11.6
   
(1.1
)
 
29.4
   
5.0
 
Mexico
   
(4.4
)
 
2.5
   
(2.5
)
 
6.4
 
USA
   
0.7
   
0.1
   
0.1
   
3.6
 
Argentina
   
11.2
   
6.7
   
34.5
   
24.0
 
Colombia
   
0.3
   
0.6
   
2.8
   
3.4
 
Peru
   
1.1
   
0.8
   
4.2
   
2.8
 
Ecuador
   
(0.2
)
 
0.3
   
0.7
   
1.3
 
Others (1)
   
0.0
   
10.0
   
0.0
   
0.4
 
Total
   
30.2
   
18.1
   
106.8
   
83.6
 
 
                 
Depreciation (2) + Amortization
                 
Chile
   
4.4
   
2.7
   
15.8
   
13.7
 
Brazil
   
3.5
   
3.3
   
13.5
   
12.9
 
Venezuela
   
2.8
   
4.4
   
10.9
   
13.9
 
Mexico
   
0.4
   
0.5
   
1.7
   
1.6
 
USA
   
0.0
   
0.1
   
0.2
   
0.6
 
Argentina
   
2.3
   
2.1
   
8.6
   
8.3
 
Colombia
   
0.1
   
(0.1
)
 
0.2
   
0.0
 
Peru
   
0.0
   
0.0
   
0.0
   
0.0
 
Ecuador
   
0.0
   
0.0
   
0.0
   
0.0
 
Others (1)
   
0.0
   
0.0
   
0.0
   
0.0
 
Total
   
13.4
   
13.0
   
50.9
   
51.0
 
 
                 
Depletion
                 
Chile
   
2.5
   
2.1
   
9.6
   
9.0
 
Brazil
   
0.8
   
1.1
   
4.6
   
5.6
 
Venezuela
   
1.0
   
0.6
   
3.4
   
3.3
 
Mexico
   
0.0
   
0.0
   
0.0
   
0.0
 
USA
   
0.0
   
0.0
   
0.0
   
0.0
 
Argentina
   
0.2
   
0.4
   
0.9
   
1.3
 
Colombia
   
0.0
   
0.0
   
0.0
   
0.0
 
Peru
   
0.0
   
0.0
   
0.0
   
0.0
 
Ecuador
   
0.0
   
0.0
   
0.0
   
0.0
 
Others (1)
   
0.0
   
0.0
   
0.0
   
0.0
 
Total
   
4.6
   
4.2
   
18.4
   
19.2
 
(1): Inter-Company sales adjustments.    
(2): Includes only operational depreciation. Note: For rounding-up effects, the sum of the figures stated may differ from the total.
 
14 / 24
   
 
Sales by Country:

The table below shows the breakdown of consolidated sales by product export market for the periods indicated.

Note: The amounts differ from income by geographical segment outlined on page 13, due to inter-company sales and exports.

 
 
Quarter ended
       
Aggregate
       
 
 
Dec 31 st ,
 
Dec 31 st ,
 
Variation
 
Dec 31 st ,
 
Dec 31 st ,
 
Variation
 
 
 
2007
 
2006
 
%
 
2007
 
2006
 
%
 
 
 
(in millions of US$)
     
(in millions of US$)
     
Brazil
   
53.3
   
38.9
   
36.9
%
 
190.4
   
145.7
   
30.7
%
Venezuela
   
45.9
   
29.4
   
56.3
%
 
146.3
   
92.4
   
58.3
%
USA
   
40.9
   
50.7
   
-19.2
%
 
172.3
   
230.2
   
-25.2
%
Chile
   
37.4
   
34.7
   
7.6
%
 
144.6
   
144.3
   
0.1
%
Argentina
   
26.8
   
19.8
   
35.7
%
 
90.9
   
69.6
   
30.6
%
Mexico
   
24.3
   
26.4
   
-8.1
%
 
101.6
   
117.2
   
-13.3
%
Peru
   
7.1
   
5.5
   
29.6
%
 
26.7
   
21.0
   
27.4
%
Colombia
   
5.5
   
6.3
   
-12.2
%
 
28.8
   
25.2
   
14.3
%
Ecuador
   
3.4
   
2.4
   
39.6
%
 
12.4
   
10.0
   
23.9
%
Others
   
15.1
   
8.6
   
76.6
%
 
51.8
   
30.8
   
68.2
%
Total
   
259.7
   
222.7
   
16.6
%
 
965.8
   
886.5
   
8.9
%
Note: For rounding-up effects, the sum of the figures stated may differ from the total.              


The table below shows the percentage breakdown of consolidated sales by product export market for the periods indicated.
 
 
 
Quarter ended
 
Aggregate
 
 
 
Dec 31 st ,
 
Dec 31 st ,
 
Dec 31 st ,
 
Dec 31 st ,
 
 
 
2007
 
2006
 
2007
 
2006
 
Brazil
   
20,5
%
 
17,5
%
 
19,7
%
 
16,4
%
Venezuela
   
17,7
%
 
13,2
%
 
15,1
%
 
10,4
%
USA
   
15,8
%
 
22,8
%
 
17,8
%
 
26,0
%
Chile
   
14,4
%
 
15,6
%
 
15,0
%
 
16,3
%
Argentina
   
10,3
%
 
8,9
%
 
9,4
%
 
7,9
%
Mexico
   
9,4
%
 
11,9
%
 
10,5
%
 
13,2
%
Peru
   
2,7
%
 
2,5
%
 
2,8
%
 
2,4
%
Colombia
   
2,1
%
 
2,8
%
 
3,0
%
 
2,8
%
Ecuador
   
1,3
%
 
1,1
%
 
1,3
%
 
1,1
%
Others
   
5,8
%
 
3,8
%
 
5,4
%
 
3,5
%
Total
   
100
%
 
100
%
 
100
%
 
100
%
Note: For rounding-up effects, the sum of the figures stated may differ from the total.  
 
15 / 24
   
 
Sales by Product:

The table below shows a breakdown of the Company’s consolidated sales by type of product for the periods indicated.

 
 
 
 
 
 
  
 
 
 
  
 
   
 
 
 
Quarter ended
 
 
 
Aggregate
 
 
 
 
 
Dec 31 st ,
 
Dec 31 st ,
 
Variation
 
Dec 31 st ,
 
Dec 31 st ,
 
Variation
 
 
 
2007
 
2006
 
%  
 
2007
 
2006
 
%
 
 
 
(in millions of US$)
     
(in millions of US$)
     
   
 
 
 
 
 
 
 
 
 
 
 
 
MDF
   
111.0
   
87.7
   
26.5
%
 
397.7
   
319.6
   
24.4
%
Particel Board
   
55.6
   
49.3
   
12.8
%
 
207.5
   
187.5
   
10.7
%
Sawn Wood
   
18.3
   
14.0
   
31.0
%
 
64.4
   
72.9
   
-11.7
%
Finger-joint Mouldings
   
16.2
   
19.8
   
-18.2
%
 
71.3
   
94.1
   
-24.2
%
OSB
   
14.5
   
8.5
   
71.6
%
 
51.5
   
48.3
   
6.7
%
Saw Logs
   
12.4
   
11.4
   
8.2
%
 
48.9
   
42.7
   
14.6
%
MDF Mouldings
   
11.8
   
16.8
   
-29.4
%
 
49.0
   
65.2
   
-24.8
%
Solid wood Doors
   
10.4
   
10.7
   
-2.7
%
 
40.6
   
39.6
   
2.5
%
Other products
   
9.4
   
4.4
   
112.0
%
 
34.9
   
16.7
   
108.5
%
 
   
    
   
 
   
  
   
   
   
      
   
     
 
Total
   
259.7
   
222.7
   
16.6
%
 
965.8
   
886.5
   
8.9
%
Note: For rounding-up effects, the sum of the figures stated may differ from the total.  
 

The table below shows a breakdown of the cubic meters sold by type of product, related to the consolidated sales of the Company’s main products for the periods indicated.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter ended
 
 
 
Aggregate
 
 
 
 
 
Dec 31 st ,
 
Dec 31 st ,
 
Variation
 
Dec 31 st ,
 
Dec 31 st ,
 
Variation
 
 
 
2007
 
2006
 
%  
 
2007
 
2006
 
%
 
 
 
(thousands of m 3 )
     
(thousands of m 3 )
     
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Saw Logs
   
376.9
   
381.4
   
-1.2
%
 
1.448.2
   
1.426.4
   
1.5
%
MDF
   
255.7
   
246.6
   
3.7
%
 
990.0
   
978.2
   
1.2
%
Particel Board
   
182.5
   
190.8
   
-4.3
%
 
720.2
   
763.7
   
-5.7
%
Sawn Wood
   
73.6
   
61.3
   
20.0
%
 
270.8
   
343.4
   
-21.2
%
OSB
   
59.4
   
40.4
   
46.9
%
 
217.5
   
219.9
   
-1.1
%
Finger-joint Mouldings
   
38.2
   
39.6
   
-3.7
%
 
173.5
   
190.4
   
-8.9
%
MDF Mouldings
   
26.4
   
36.9
   
-28.6
%
 
116.3
   
157.9
   
-26.3
%
Solid wood Doors
   
10.4
   
11.2
   
-6.4
%
 
41.4
   
42.5
   
-2.6
%
Other products
   
130.9
   
256.3
   
-48.9
%
 
718.1
   
995.3
   
-27.8
%
Total
   
1,154.0
   
1,264.5
   
-8.7
%
 
4,696.0
   
5,117.7
   
-8.2
%
Note: For rounding-up effects, the sum of the figures stated may differ from the total.
 
16 / 24
   
 
Breakdown of Production Costs:

The table below shows a percentage breakdown of the average consolidated production costs for bare (without melamine) particleboards, MDF and OSB, for the periods indicated.
 
 
 
Quarter ended
 
Aggregate
 
   
Dec 31 st ,
 
Dec 31 st ,
 
Dec 31 st ,
 
Dec 31 st ,
 
 
 
2007
 
2006
 
2007
 
2006
 
 
 
 
 
 
 
 
 
 
 
Wood
   
24.5
%
 
22.8
%
 
24.1
%
 
23.4
%
Chemicals
   
31.5
%
 
34.5
%
 
32.3
%
 
34.9
%
Energy
   
10.5
%
 
8.1
%
 
10.5
%
 
8.3
%
Personnel
   
8.3
%
 
8.6
%
 
8.1
%
 
7.9
%
Depreciation
   
7.5
%
 
9.9
%
 
8.1
%
 
10.8
%
Others*
   
17.7
%
 
16.0
%
 
16.9
%
 
14.7
%
Total
   
100.0
%
 
100.0
%
 
100.0
%
 
100.0
%
Note: For rounding-up effects, the sum of the figures stated may differ from the total.
* Others include mainly: maintenance, spare parts and materials and packaging expenses.

The table below shows a percentage breakdown of the average consolidated production costs for doors, finger-joint mouldings and sawn lumber, for the periods indicated.
 
 
 
Quarter ended
 
Aggregate
 
 
 
Dec 31 st ,
 
Dec 31 st ,
 
Dec 31 st ,
 
Dec 31 st ,
 
 
 
2007
 
2006
 
2007
 
2006
 
 
 
 
 
 
 
 
 
 
 
Wood
   
29.0
%
 
28.9
%
 
31.0
%
 
33.0
%
Materials and Supplies
   
8.1
%
 
10.2
%
 
8.1
%
 
9.6
%
Services
   
16.8
%
 
14.4
%
 
14.9
%
 
14.0
%
Energy
   
7.3
%
 
3.4
%
 
6.7
%
 
3.3
%
Personnel
   
27.4
%
 
27.6
%
 
26.2
%
 
25.1
%
Depreciation
   
6.7
%
 
7.4
%
 
6.7
%
 
7.4
%
Others*
   
4.7
%
 
8.0
%
 
6.5
%
 
7.6
%
Total
   
100.0
%
 
100.0
%
 
100.0
%
 
100.0
%
Note: For rounding-up effects, the sum of the figures stated may differ from the total.
* Others include mainly: maintenance, spare parts and materials and packaging expenses.
 
17 / 24
   
 
MASISA S.A. AND SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS

 
 
Aggregate
 
CONSOLIDATED INCOME STATEMENTS
 
Dec 31 st ,
 
Dec 31 st ,
 
   
2007
 
2006
 
       
 
(in thousands of US$)
 
 
 
 
 
 
 
Operating Income
   
965,816
   
886,507
 
Operating Costs (less)
   
(722,511
)
 
(678,956
)
OPERATING MARGIN
   
243,305
   
207,551
 
Selling and Administrative Expenses (less)
   
(136,538
)
 
(123,972
)
OPERATING INCOME
   
106,767
   
83,579
 
Financial Income
   
4,314
   
8,716
 
Financial expenses (less)
   
(33,774
)
 
(35,371
)
Net financial expenses
   
(29,460
)
 
(26,655
)
Net income related company investments
   
0
   
613
 
Loss related company investments (less)
   
(197
)
 
0
 
Net earnings related company investments
   
(197
)
 
613
 
Other non-operating income
   
4,075
   
6,898
 
Other non-operating expenses (less)
   
(20,827
)
 
(15,883
)
Amortization of goodwill (less)
   
(122
)
 
(85
)
Currency correction
   
3,885
   
628
 
Exchange differences
   
(13,605
)
 
(11,513
)
NON-OPERATING INCOME
   
(56,251
)
 
(45,997
)
Income before income taxes and extraordinary items
   
50,516
   
37,582
 
Income tax
   
(22,705
)
 
(23,344
)
Extraordinary items
   
0
   
0
 
Net Income (loss) before minoritary interest
   
27,811
   
14,238
 
Minoritary interest
   
8,661
   
10,695
 
Net Income (loss)
   
36,472
   
24,933
 
Amortization of negative goodwill
   
4,586
   
4,552
 
NET INCOME (LOSS) FOR THE PERIOD
   
41,058
   
29,485
 
Note: For rounding-up effects, the sum of the figures stated may differ from the total.

18 / 24
   
 
MASISA S.A. AND SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS
 
 
 
Aggregate
 
CONSOLIDATED BALANCE
 
Dec 31 st ,
 
Dec 31 st ,
 
   
2007
 
2006
 
       
 
(in thousands of US$)
 
ASSETS
 
 
 
 
 
CURRENT ASSETS:
 
 
 
 
 
Cash and equivalents
   
11,929
   
16,705
 
Time deposits
   
24,689
   
29,388
 
Negotiable securities (net)
   
1,363
   
956
 
Sales debtors (net)
   
135,357
   
125,107
 
Documents receivables (net)
   
9,901
   
10,130
 
Sundry debtors (net)
   
19,567
   
18,814
 
Documents and accounts receivables to related companies
   
7,326
   
7,378
 
Inventories (net)
   
212,455
   
185,777
 
Recoverable taxes
   
57,665
   
62,237
 
Anticipated paid expenses
   
8,308
   
6,504
 
Differed taxes
   
9,953
   
9,876
 
Other current assets
   
1,671
   
2,479
 
Total Current assets
   
500,184
   
475,351
 
FIXED ASSETS:
         
Lands
   
165,089
   
142,758
 
Construction and infrastructure works
   
218,451
   
220,140
 
Machinery and equipments
   
857,467
   
849,262
 
Others fixed assets
   
918,183
   
757,249
 
Higher value for technical reappraisal of fixed assets
   
7,390
   
7,390
 
Depreciation (less)
   
-464,163
   
-419,451
 
Total Fixed assets
   
1,702,417
   
1,557,348
 
OTHERS ASSETS:
         
Related company investments
   
4,170
   
4,651
 
Other company investments
   
217
   
206
 
Lower value of investments
   
2,308
   
1,165
 
Higher value of investments (less)
   
-54,408
   
-58,352
 
Long term debtors
   
4,711
   
4,113
 
Long term documents and accounts receivable to related companies
   
0
   
1,406
 
Long term differed taxes
   
0
   
0
 
Intangibles
   
11,564
   
267
 
Amortization (less)
   
-938
   
-41
 
Others
   
41,238
   
30,220
 
Total Others Assets
   
8,862
   
(16,365
)
TOTAL ASSETS
   
2,211,463
   
2,016,334
 
Note: For rounding-up effects, the sum of the figures stated may differ from the total.
19 / 24
   

MASISA S.A. AND SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS
 
 
 
Aggregate
 
CONSOLIDATED BALANCE
 
Dec 31 st ,
 
Dec 31 st ,
 
 
 
2007
 
2006
 
  
 
(in thousands of US$)
 
LIABILITIES
 
 
 
 
 
CURRENT LIABILITIES:
 
 
 
 
 
Short term obligations with banks and financial institutions
   
113,600
   
65,529
 
Long term obligations with banks and financial institutions - short term portion
   
45,119
   
52,787
 
Obligations to the public - short term portion (bonds)
   
62,643
   
32,937
 
Long term obligations with one-year maturity
   
0
   
0
 
Dividends payable
   
444
   
473
 
Accounts payable
   
74,129
   
52,260
 
Documents payable
   
999
   
707
 
Sundry creditors
   
2,044
   
2,069
 
Documents and accounts payable to related companies
   
7,472
   
5,451
 
Provisions
   
42,063
   
31,742
 
Retentions
   
16,923
   
14,244
 
Income tax
   
21,633
   
8,823
 
Incomes received in advance
   
274
   
279
 
Others current liabilities
   
0
   
47
 
Total Current Liabilities
   
387,343
   
267,348
 
LONG TERM LIABILITIES:
         
Obligations with banks and financial institutions
   
136,117
   
170,944
 
Long term obligations to the public (bonds)
   
287,107
   
274,112
 
Long term sundry creditors
   
57
   
74
 
Long term provisions
   
1,716
   
1,662
 
Long term differed taxes
   
95,950
   
77,957
 
Others long term liabilities
   
16,396
   
17,320
 
Total Long Term Liabilities
   
537,343
   
542,069
 
MINORITARY INTEREST:
   
14,777
   
20,562
 
NET WORTH:
         
Paid in capital
   
812,880
   
812,880
 
Capital revalorization reserve
   
0
   
0
 
Overpricing in sale of treasury shares
   
0
   
0
 
Other reserves
   
276,549
   
219,494
 
Retained earnings
   
182,571
   
153,981
 
Future dividend reserves
   
51,424
   
51,424
 
Earnings aggregate
   
90,089
   
73,072
 
Loss aggregate (less)
   
0
   
0
 
Net income (loss) for the period
   
41,058
   
29,485
 
Provisory Dividends (less)
   
0
   
0
 
Aggregate deficit for development period
   
0
   
0
 
Total Net Worth
   
1,272,000
   
1,186,355
 
TOTAL LIABILITIES
   
2,211,463
   
2,016,334
 
Note: For rounding-up effects, the sum of the figures stated may differ from the total.
 
20 / 24
   

MASISA S.A. AND SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS
 
 
 
Aggregate
 
CASH FLOW STATEMENT - DIRECT
 
Dec 31 st ,
 
Dec 31 st ,
 
 
 
2007
 
2006
 
   
 
(in thousands of US$)
 
 
 
 
 
 
 
FLOW ORIGINATED BY OPERATING ACTIVITIES:
 
 
 
 
 
Sales debtors collection
   
1,188,447
   
1,230,899
 
Financial income received
   
3,435
   
36,851
 
Dividends and other distributions received
   
0
   
0
 
Other incomes received
   
43,591
   
29,742
 
Supplier and personnel payment (less)
   
(976,399
)
 
(1,053,794
)
Interests paid (less)
   
(44,780
)
 
(78,138
)
Income tax paid (less)
   
(12,718
)
 
(11,346
)
Other expenses paid (less)
   
(4,172
)
 
(2,229
)
VAT and similar others paid (less)
   
(54,893
)
 
(19,950
)
Net Flow Originated by Operating Activities
   
142,511
   
132,035
 
FLOW ORIGINATED BY FINANCING ACTIVITIES:
         
Payment shares placement
   
0
   
44,012
 
Loans granted
   
258,583
   
242,536
 
Obligations to the public
   
87,842
   
162,965
 
Documented loans to related companies
   
24
   
0
 
Others loans granted to related companies
   
0
   
73
 
Other financing sources
   
7,786
   
0
 
Dividend payment (less)
   
(12,467
)
 
(11,491
)
Capital distribution (less)
   
0
   
0
 
Loan payment (less)
   
(262,290
)
 
(291,108
)
Obligations to the public payment(less)
   
(84,171
)
 
(178,338
)
Documented loans to related companies payment (less)
   
0
   
0
 
Others loans granted to related companies payment (less)
   
0
   
(709
)
Emission and share placement expenses payment (less)
   
0
   
(903
)
Emission and obligations to the public placement expenses payment (less)
   
0
   
0
 
Others financing disbursements (less)
   
0
   
0
 
Net Flow Originated by Financing Activities
   
(4,693
)
 
(32,963
)
FLOW ORIGINATED BY INVESTMENT ACTIVITIES:
         
Fixed asset sales
   
1,441
   
1,565
 
Permanent investment sales
   
0
   
0
 
Other investment sales
   
0
   
1,698
 
Documented loans to related companies collection
   
0
   
0
 
Other loans to related companies collection
   
0
   
0
 
Others investment income
   
0
   
2,877
 
Fixed assets incorporation (less)
   
(139,689
)
 
(121,843
)
Capitalized interests payment (less)
   
(6,359
)
 
(6,936
)
Permanent investments (less)
   
(2,303
)
 
(27,229
)
Financial instrument investments (less)
   
0
   
0
 
Documented loans to related companies (less)
   
0
   
0
 
Others loans to related companies (less)
   
0
   
0
 
Others investment disbursements (less)
   
0
   
0
 
Net Flow Originated by Investment Activities
   
(146,910
)
 
(149,868
)
TOTAL NET FLOW FOR THE PERIOD:
   
(9,092
)
 
(50,796
)
Inflation effect over cash and cash equivalents
   
24
   
(12
)
Net variation of cash and cash equivalents
   
(9,068
)
 
(50,808
)
Initial balance of cash and cash equivalents
   
47,049
   
97,857
 
FINAL BALANCE OF CASH AND CASH EQUIVALENTS
   
37,981
   
47,049
 
Note: For rounding-up effects, the sum of the figures stated may differ from the total.
 
21 / 24
   

MASISA S.A. AND SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS

   
Aggregate
 
FLOW-INCOME CONCILIATION
 
Dec 31 st ,
 
Dec 31 st ,
 
 
 
2007
 
2006
 
    
 
(in thousands of US$)
 
Net Income for the period
 
41,058
 
29,485
 
ASSET SALE INCOME
 
 
 
 
 
(Net Income) Loss in fixed asset sales
   
(11
)
 
(31
)
Net Income in investment sales (less)
   
0
   
0
 
Loss in investment sales
   
0
   
0
 
(Net Income) Loss in others asset sales
   
785
   
0
 
Asset sales income
   
774
   
(31
)
CHARGES (INCOME) TO INCOME WHICH DOES NOT REPRESENT CASH FLOW
         
Depreciation for the period
   
50,290
   
50,563
 
Intangibles amortization
   
1,044
   
439
 
Punishments and provisions
   
4,276
   
5,995
 
Net income paid for investments in related companies (less)
   
0
   
(613
)
Loss paid for investments in related companies
   
197
   
0
 
Amortization of goodwill
   
122
   
85
 
Amortization of negative goodwill (less)
   
(4,586
)
 
(4,552
)
Net currency correction
   
(3,885
)
 
(628
)
Net exchange difference
   
13,602
   
11,513
 
Other income to income which does not represent cash flow (less)
   
(2,316
)
 
(64
)
Other charges to income which does not represent cash flow
   
20,304
   
20,070
 
Cargos (Charges) to income which does not represent cash flow
   
79,048
   
82,808
 
VARIATION OF ASSET WHICH AFFECT CASH FLOW:
         
Sale debtors
   
3,326
   
(1,825
)
Inventories
   
(29,608
)
 
45,892
 
Other assets
   
15,360
   
(17,210
)
Variation of assets which affect cash flow increase (decrease)
   
(10,922
)
 
26,857
 
VARIATION OF LIABILITIES WHICH AFFECT CASH FLOW
         
Accounts payable related to operating income
   
11,286
   
(19,545
)
Interests payable
   
6,707
   
2,434
 
Income tax payable (net)
   
(1,267
)
 
3,185
 
Other accounts payable related to non operating income
   
23,748
   
6,715
 
VAT and similar others payable (net)
   
740
   
10,822
 
Variation of liabilities which affect cash flow increase (decrease)
   
41,214
   
3,611
 
Net income (Loss) of minoritary interest
   
(8,661
)
 
(10,695
)
NET FLOW ORIGINATED BY OPERATING ACTIVITIES
   
142,511
   
132,035
 
Note: For rounding-up effects, the sum of the figures stated may differ from the total.
 
22 / 24
   
 
Forecasts and Estimates

This press release may contain forecasts, which are different statements from historical facts or current conditions, and include the management’s current vision and estimates of future circumstances, industry conditions and the Company’s performance. Some forecasts may be identified by the use of terms such as “may,” “should,” “anticipates,” “believes,” “estimates,” “expects,” “plans,” “intends,” “forecasts” and other similar expressions. Statements about future market share, projected future competitive strengths, the implementation of significant operating and financial strategies, the direction of future operations, and the factors or trends affecting financial conditions, liquidity, or operating income are examples of forecasts. Such statements reflect the current management vision and are subject to various risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. These statements are made based on many assumptions and factors, including general economic and market conditions, industry conditions and operating factors. Any changes in such assumptions or factors could lead to the current results of Masisa, and the projected Company activities, to materially differ from current expectations.

23 / 24
   
 
SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: February 20, 2008


 
Masisa S.A.
 
By:
 
/s/ Patricio Reyes
   
Patricio Reyes
General Counsel

24 / 24
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