euro adhoc: Precious Woods Holding Ltd.
other
Precious Woods continues to
grow strongly, but earnings suffer in the second quarter
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
6-month report
21.08.2008
Compared to the prior year, Precious Woods increased total first-half operating income in US dollar terms by 50%. In local currencies, operating income increased by 30%. First-half profit from operating activities declined from USD 5.4 million in the prior year to USD 4.7 million in the current year. Net income decreased from USD 5.1 million to USD 3.7 million.
The following one-off developments had a negative impact on operating profit and net income: - Technical problems at the veneer factory in Gabon led to production losses amounting to EUR 2.2 million, while costs remained unchanged. - Shipping delays, due to an exceptional shortage of shipping capacity in June, led to a loss of turnover amounting to USD 2.2 million, negatively impacting operating profit and net income by USD 0.3 million. These losses will be compensated in the third quarter.
Order intake in Holland declined slightly compared to the prior year as a result of slowing construction activity. In addition, the particularly high margins achieved a year earlier decreased due to higher purchase costs.
On the other hand, there were also positive developments:
- Precious Woods Amazon performed significantly better than in the prior year, achieving a profit of USD 0.3 million compared to a loss of USD 1.2 million in the same period a year earlier. - On the back of rising prices, revenues from sales of emission rights were significantly higher in first-half 2008. - CEB, the Gabonese forestry and sawmill operation, successfully completed an initial FSC audit and is therefore on schedule for FSC certification.
For full-year 2008, Precious Woods continues to anticipate that sales and operating profit will grow by 30-50%.
end of announcement euro adhoc
Further inquiry note:
Sandra Demi
Sekretariat
Tel. +41/44/245'80'10
Branche: Forestry & Timber
ISIN: CH0013283368
WKN: 982280
Index: SPI
Börsen: SWX Swiss Exchange / official dealing