euro adhoc: Precious Woods Holding AG, Zug
Annual Reports
Precious Woods:
Poor Results 2005 - Excellent Outlook for 2006
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
25.04.2006
Precious Woods increased gross trading sales by 6.1% to 18.0 million USD in 2005 compared to USD 17.0 million in prior year. Net trading sales stagnated at 15.3 million USD. A net loss of USD 7.5 million was incurred in 2005 against a profit of USD 3.3 million in 2004.
The significant net loss results from a one time accumulation of negative factors in Brazil which caused the net result to fall by USD 9 million: the late issue of the harvest permit for Precious Woods Pará incurred USD 3 million in lost trading revenue and a USD 2 million charge to income. Exchange rate related cost increases amounted to USD 2 million to which wage and fuel price increases added USD 1.5 million. In addition, one-off write-offs incurred a charge of USD 3.5 million.
Precious Woods expects the current year 2006 to be significantly more positive than 2005. Even if Brazil still yields a small loss due to the ongoing challenging business environment, the profit should increase by a factor of two and a half to three compared to the profitable year 2004. The main reasons for this are the commencing sale of CO2 emission rights and the price developments in these markets which vastly exceed prior expectations. The quantities of CO2 emission rights which Precious Woods will have available to monetize are also at the high end of expectations.
After completion of acquisitions in 2005 the activities of Precious Woods are now much more broadly based and no longer so highly dependant on the business in Brazil. The European trading Company, now delivering more than two thirds of the Group revenue, has developed well. Orders booked and revenue are up on prior year and on budget with good margins.
Key financial data (USD million)
2004 2005 Change Gross Turnover 16.97 18.01 6.1% Net Turnover 15.50 15.31 -1.2% Production Cost 11.30 20.34 80.0% Gross Margin 4.20 -5.03 - Net Increase in Value Central America 3.62 3.58 -1.1% Total revenue* 20.87 20.62 -1.2% Operating Result 4.50 -8.61 - Overall Result 3.33 -7.46 - Number of employees 1630 1741 111
* Net trading sales + Gross Increase in the fair value of biological assets Central America
Precious Woods (SWX: PRWN) is active in the reforestation and sustainable management of tropical forests, downstream wood processing and trading of FSC-certified timber and non-timber forest products. The shares of Precious Woods have been listed on the SWX Swiss Exchange since March 2002. More information about the company and its activities may be found on the website www.preciouswoods.com.
end of announcement euro adhoc 26.04.2006 05:30:00
Kontakt:
Precious Woods Holding AG, Zug
Dr. Andres Gut, Chairman
Tel. 41 1 245 80 10
mailto:office@preciouswoods.ch
Branche: Forestry & Timber
ISIN: CH0013283368
WKN: 982280
Index: SPI
Börsen: SWX Swiss Exchange / official dealing