euro adhoc: Precious Woods Holding AG, Zug
quarterly or semiannual financial
statement
Precious Woods triples sales due to acqusitions and nears break-even
in the
first quarter. Confident full year outlook. Important CDM project registered.
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
20.05.2006
At the Annual General Assembly of Shareholders on 20 May 2006 Precious Woods published the Key Financial Data (unaudited) for the first quarter 2006. Net sales advanced to USD 10.5 million from USD 3.8 million in the first quarter of the prior year. This increase in sales is due to the inclusion of the recent acquistions, Precious Woods Europe in Holland and the wood chip fuelled power plant (Precious Woods Energia) in Brazil.
The first quarter result amounted to a loss of USD 135,000 which was close to break-even after Precious Woods had suffered deep losses in the prior year. The Brazilian subsidiaries still incurred a loss in the first quarter. The other subsidiaries performed in line with budget achieving profits which largely equalized the loss incurred in Brazil.
The restructuring measures taken in Brazil were only partially effective in the first quarter and should become more evident in the course of the full year. Further actions were initiated to fully eliminate the losses in Brazil. A number of factors, not least of which is the currency exchange rate, will determine whether Brazil can reach break-even in the full year. As opposed to prior year Precious Woods has undertaken partial hedging of a possible further depreciation.
The first quarter performance includes USD 200,000 net profit from the sale of emission rights. After the volatile swings in the European emission markets after 27 April 2006, exactly forecasting expected revenues from emission rights in 2006 has become more difficult. Precious Woods' power plant project has been registered by the CDM Board with the sale of corresponding emissions rights being negotiated; significant revenues from this project are expected in the third quarter.
Precious Woods continues to forecast full year net sales in the region of USD 40 to 45 million and a net profit in the range of USD 6 to 10 million. However in this context it is important to consider that the development of several important factors such as the currency exchange rate in Brazil, fuel prices and the volatility of the emission rights markets cannot be reliably predicted.
The ordinary Annual General Meeting of Precious Woods Holding Ltd. has approved all motions brought forward by the Board of Directors. Claude Martin, General Director of WWF International from 1993 to 2005, was elected as a new member of the Board of Directors.
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 20.05.2006 18:24:18
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