EANS-Adhoc: Precious Woods: Sales growth of 17% despite difficult market conditions, drop of operational profit and extraordinary, non-recurring adjustments at year-end lead to a net loss for 2008
ad-hoc disclosure transmitted by euro adhoc with the aim of a Europe-wide distribution. The issuer is solely responsible for the content of this announcement.
annual report
21.04.2009
The Precious Woods Group achieved in 2008 a total operating income of USD 116.7 million. This corresponds to a growth of 17% compared to 2007 (USD 99.8 million). With the elimination of currency effects the increase is reduced to 10%. Sales of Gabonese round wood, of electricity in Brazil, as well as the revenue from emission rights and the increase in biological assets in Central America were satisfactory. However, sales of sawn timber and veneer failed to meet expectations.
Demand for timber products in export markets weakened particularly in the forth-quarter 2008 due to the consequences of the financial crisis and global economic downturn. The decline in sales mainly in Holland was caused by lower sales volumes and an increased pressure on sales prices. The operational contribution was furthermore adversely affected by a loss at the rotary veneer factory in Gabon, due to temporary production related issues. Local sales in Brazil on the other hand, performed well, showing an increase of 80%.
Extraordinary and non-recurring factors required at year-end significant adjustments of USD 9.2 million. These compromise essentially charges due to the cessation of operational activities in the Brazilian state of Pará, as well as adjustments of inventories and intangible assets of Precious Woods Europe. The Group reports therefore a loss from operating activities (EBIT) of USD 10.0 million. After an impairment value of USD 2.9 million for the investment in the Democratic Republic of Congo and the Group´s net finance expense of USD 3.2 million, the net loss (after tax) amounts to USD 14.5 million in 2008.
With the adjustments undertaken, Precious Woods strengthened the balance sheet and is therefore able to face the challenges of 2009 and the difficult business environment with confidence. Detailed information can be found in the Annual Report 2008, which will be published today on www.preciouswoods.com.
Precious Woods will refrain from publishing quarterly financial figures in the future. The next half-year financial results of the Group will be published in September 2009.
Conference call for analysts, investors and media - Full Year Results 2008
The telephone conference will be conducted by Ernst A. Brugger (Chairman of the Board a.i.), Andreas Heusler (CEO) and Cornelia Gehrig (CFO). To participate in the conference please call in at least 5 minutes before the conference begins.
Wednesday, April 22, 2009 11.30 a.m. (CET) Dial-in number: +41 52 267 07 07 PIN-Code: 938160
The conference will be held in German.
end of ad-hoc-announcement ========================================== ====================================== Precious Woods is one of the leading companies in the area of sustainable management and use of tropical forests. The company's core activities include reforestation and sustainable management of tropical forests, timber processing and the trading of FSC-certified timber products. The generation of emission rights and electricity from recovery wood represent further integral elements of the companys business. The shares of Precious Woods Holding have been traded on the SIX Swiss Exchange since March 2002. Further information about Precious Woods is available at www.preciouswoods.com.
end of announcement euro adhoc
Further inquiry note:
Patrick Mauron
Head of Corporate Communication
Precious Woods Holding Ltd.
Militärstrasse 90
CH-8021 Zürich
Tel.: +41 44 245 81 20
E-Mail: patrick.mauron@preciouswoods.com
Branche: Forestry & Timber
ISIN: CH0013283368
WKN: 982280
Index: SPI
Börsen: SWX Swiss Exchange / official dealing