Pfleiderer AG / Quarter Results
08.05.2008
Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Strong international market position expanded
Pfleiderer continues growth path in Q1 2008 one-time factors impact
earnings by around 6 million full-year guidance confirmed unchanged
Consolidated revenues up 9% to approximately 468 million
EBITDA climbs by 7% to 60.4 million; EBITDA margin reaches 12.9%
Full-year guidance confirmed unchanged
Neumarkt, May 8, 2008 MDAX-listed Pfleiderer AG, ISIN DE0006764749, has
published its figures for the first three months of 2008 (January 1 to
March 31) reporting revenue growth of 9.4%. Despite a weaker economy in the
European markets of Poland, the U.K., and Spain, as well as fewer
production days due to the Easter holidays in March, the internationally
leading manufacturer of engineered wood products increased consolidated
revenues in Q1 2008 to 467.7 million (Q1 2007: 427.6 million).
'In the first three months of the current fiscal year, the Pfleiderer Group
continued on its growth path despite poorer economic conditions in a number
of areas. We generated good revenue growth in all regions and maintained
our market-leading position. In spite of disappointing earnings in Poland,
we are reiterating our full-year targets,' said Pfleiderer AGs CEO Hans H.
Overdiek, commenting on the Companys current business performance.
Revenues up in all segments
In the Western Europe region, revenues in Q1 2008 rose by 8.7% to 260.2
million (239.3 million). Group revenues in Eastern Europe outstripped the
market, growing by 12.9% to 105.3 million (93.3 million). In North
America, Pfleiderer bucked the market trend and increased revenues by 9.8%
to 110.9 million (101.0 million), thus successfully posi-tioning itself
as the market-leading manufacturer of laminate flooring. Overall, the
international share of revenues in the Pfleiderer Group increased from
68.1% to 72.2%.
Seasonal factors impact earnings
However, as a result of weaker growth in Poland in the first quarter,
consolidated earnings before interest, taxes, depreciation, and
amortization (EBITDA) rose by only 7.1% to 60.4 million (56.4 million),
thus falling short of the Companys forecast by 3.1 million. The
consolidated EBITDA margin reached 12.9% (13.2%). Due to seasonal factors,
the first quarter is always the weakest quarter of the fiscal year.
Equally, the lower number of production days compared with last year as a
result of the Easter holidays in March had a negative impact this year. At
the same time, temporary cost increases for raw materials, higher
administrative expenses, and a weaker contribution to earnings by Eastern
Europe were responsible for the lower rate of earnings growth. There are
already signs of a significant improvement in consolidated EBITDA in the
current second quarter, including as against the comparable prior-year
period.
Sustainably strong growth in Western Europe
The Western Europe region again performed particularly well, with EBITDA
rising faster than revenues by 33.5% to 44.6 million (33.4 million). This
strong business development is due to the continued growth of high-margin
products and higher efficiency. The EBITDA margin in the region improved
from 14.0% to 17.1%. EBIT increased by 41.2% to 32.0 million (22.7
million). This underscores Western Europes ability to generate sustainably
strong earnings. Pfleiderer expects this positive business development will
continue and is forecasting a further increase in productivity over the
course of the fiscal year.
Performance in Eastern Europe dips temporarily
The commissioning of the new MDF plant in Grajewo and the uninterrupted
high demand in Russia led to an increase in revenues in the Eastern Europe
region. However, particularly in Poland, earnings did not meet expectations
due to cost and price pressure. Muted demand for raw particleboard and MDF
boards in Poland, temporary cost increases for wood and glue, and the
appreciation of the Polish zloty had a negative effect on the results of
operations in the first quarter. EBITDA fell to 13.3 million (17.8
million), corresponding to a margin of 12.6% (19.1%), while EBIT in
Eastern Europe amounted to 5.3 million (12.3 million).
On the raw materials side, however, costs have started to ease
significantly since April for both glue and wood. Pfleiderer initiated an
extensive cost-cutting program with a volume of over 20 million, which
will significantly improve the margin quality in this region again over the
course of the fiscal year.
'The cost-cutting program initiated in Poland will ensure a clear
improvement in the earnings trend in Eastern Europe in the current year.
This means that we are expecting a significant recovery on a twelve-month
basis compared with the first quarter,' said Hans H. Overdiek.
Strong business development in North America
Despite the challenging market situation in North America, Pfleiderer
achieved its growth targets, lifting revenues by 9.8%. Excluding negative
exchange rate effects, revenue growth for the region would have reached
almost 16%. Against the backdrop of a declining market, Pfleiderer gained
additional market share in the laminate flooring segment and increased its
sales volume. In Q1 2008, board manufacturing in North America also ran at
close to full capacity. Only at the Canadian MDF plant La Baie production
was temporarily halted for cost reasons.
'We are extremely pleased with business developments in North America.
Despite the ongoing difficult market conditions, we achieved our growth
targets in full by gaining market share,' said Hans H. Overdiek, commenting
on Pfleiderers performance in North America.
In North America, EBITDA increased to 8.8 million (7.8 million), while
the EBITDA margin improved to 7.9% (7.7%). EBIT amounted to 1.0 million
(1.8 million). The restructuring measures implemented last year led as
planned to cost reductions of approximately 5 million in the period under
review. However, higher marketing and ramp-up costs were incurred in the
first quarter for the major order from The Home Depot. As of the second
quarter, branches of the home improvement chain in the U.S.A. will be
supplied with the new Pergo Prestige collection. Over the course of the
year, Pfleiderer is expecting a further moderate increase in its business
volume and an increase in market share in North America. Optimized cost
structures will contribute to a further improvement in the earnings
situation for the full year.
One-time costs impact net financial expenses
As a result of higher depreciation, amortization, and impairment losses on
investments in Eastern Europe, consolidated earnings before interest and
taxes (EBIT) fell slightly in Q1 2008 to 32.2 million (34.1 million).
Pfleiderer generated profit before taxes from continuing operations (EBT)
of 14.4 million (24.9 million) in the period under review. Net financial
expenses were impacted by the measurement as of the reporting date of
interest rate hedges (-4.5 million) and by currency forwards (-1.2
million). By contrast, the same items made a positive contribution of 1.6
million in the prior-year period. Overall, this resulted in a year-on-year
difference of 7.3 million in net financial expenses due to these one-time
factors.
At 14.4 million, profit from continuing operations before income taxes
remained below the figure for the previous year (24.8 million) due to the
one-time factors mentioned above. Profit for the period amounted to 10.9
million (17.5 million), while consolidated profit was 5.3 million (12.4
million). This corresponds to basic earnings per share of 0.10, compared
with 0.24 in the previous year.
Solid net assets and financial position
Due to higher receivables and current assets, total assets increased
slightly by 1.5% to 1,949.8 million as against the end of 2007. Noncurrent
liabilities and equity remained virtually unchanged. The equity ratio was
41.1% (41.7%). In line with expectations, the Groups net debt rose
slightly as against the end of 2007 to 652.4 million (618.2 million).
Gearing, the ratio of net debt to equity, was 0.81.
Pfleiderer AGs Executive Board confirms targets for 2008
Despite the unsatisfactory earnings trend record in Q1 2008, Pfleiderer
AGs Executive Board believes there is a realistic opportunity to meet the
targets for the year that were previously announced, provided the market
situation does not deteriorate further. The Company is aiming to achieve
consolidated revenues in the order of 2 billion and to improve the
Group-wide EBITDA margin to 15% in fiscal year 2008. This view is based on
the measures that have been initiated, the Companys strong performance in
the Western Europe region, as well as business in North America, which is
currently progressing better than planned. Over the rest of the year, these
factors will offset the drop in earnings recorded in Eastern Europe in Q1.
Key figures for the Pfleiderer Group as of March 31, 2008
m Jan. 1- Jan. 1- Delta
Mar. 31, 2008 Mar. 31, 2007 in %
Revenues 467.7 427.6 9.4%
International share (in %) 72.2 68.1 6.0%
EBITDA 60.4 56.4 7.1%
EBITDA-Margin (in %) 12.9 13.2 -2.3%
EBIT 32.2 34.1 -5.5%
EBT from continuing operations 14.4 24.9 -42.1%
Profit for the period 10.9 17.5 -37.8%
Consolidated profit 5.3 12.4 -57.8%
Earnings per share (basic) () 0.10 0.24 -58.3%
Earnings per share (diluted) () 0.10 0.23 -56.5%
Employees (without apprentices) 5,866 5,810 +1.0%
Germany 2,581 2,572 +0.3%
Outside Germany 3,285 3,238 +1.5%
Average number of shares 50,938,862 52,752,806 -3.4%
outstanding
Note:
Pfleiderer will host on Thursday, May 8, 2008 telephone conference calls
for press (in German) and international analysts/investors (in English).
You can follow the speeches and accompanying chart presentations of Hans H.
Overdiek, CEO of Pfleiderer AG on the Internet. You will find
direct links to the chart presentations on Pfleiderer AGs website
(www.pfleiderer.com) under the sections 'Presse' (German) and 'Investor
Relations' (English).
For further information, please contact:
Pfleiderer AG, Neumarkt
Gala Conrad
Vice President, Corporate Communications/Investor Relations
Tel.: + 49 (0) 91 81 / 28 84 91
Fax: + 49 (0) 91 81 / 28 60 6
E-mail: gala.conrad@pfleiderer.com
DGAP 08.05.2008
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Language: English
Issuer: Pfleiderer AG
Ingolstädter Straße 51
93218 Neumarkt
Deutschland
Phone: +49 (0)9181 28 - 8491
Fax: +49 (0)9181 28 - 606
E-mail: gala.conrad@pfleiderer.com
Internet: www.pfleiderer.com
ISIN: DE0006764749
WKN: 676474
Indices: MDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, Hamburg, München, Stuttgart
End of News DGAP News-Service
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DGAP-News: Pfleiderer AG:Pfleiderer continues growth path in Q1 2008 one-time factors impact earnings by around 6 million full-year guidance confirmed unchanged
| Source: EQS Group AG