EANS-Adhoc: Precious Woods Holding Ltd.
Reduced demand for tropical timber has
negative impact on half year result 2009
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.
6-month report
31.08.2009
The global financial and economic crisis was felt on the tropical timber markets and also had a negative influence on the course of business of Precious Woods during the first half of 2009. Total operating income for the first six months of the year declined to USD 44.8 million, 29% less than in the previous year. The result from operating activities fell from USD 4.7 million in 2008 to USD -3.7 million during the current year. The net loss amounted to USD 4.8 million. The Board of Directors and the Group Management implemented measures to improve the financial results in a sustainable way without jeopardizing the sustainable management of the company´s forest resources.
Gabon and Central America succeeded to obtain reasonable results despite a reduced demand and lower sales whereas the businesses in the Netherlands and especially in Brazil produced sales and operational results which were unsatisfactory due to both external and internal reasons.
In USD million 1st half 2009 1st half 2008
Timber and electricity sales 40.8 57.8 -29% Total operating income 44.8 63.5 -29% Result from operating activities -3.7 4.7 Net income -4.8 3.8
Extraordinary expenses of around USD 2.2 million were incurred during the first half of 2009. A portion of these extraordinary factors could be compensated by gains from the sales of non-operating assets in the amount of USD 1.3 million, which resulted in a net impact of USD 0.9 million.
Financing According to the decision of the last Annual General Meeting, Precious Woods is entitled to issue a convertible bond on the capital market in a nominal amount of up to CHF 20 million. Conditions on the capital market in the first half-year did not permit such an issuance. Since the beginning of the year the company has been involved in constructive talks with its key banks regarding the refinancing of loans coming up for repayment. Due to the development of the operational result (EBITDA) some credit conditions could not be met. With the implemented actions the profitability of the Group shall be improved and the financing of the company be enhanced.
Detailed information can be found in the Half Year Report 2009, which will be published today on www.preciouswoods.com.
Conference call for analysts, investors and media - Half Year Results 2009
The telephone conference will be conducted by Ernst A. Brugger (Chairman of the Board), Andreas Heusler (CEO) and Cornelia Gehrig (CFO). To participate in the conference please call in at least 5 minutes before the conference begins.
Tuesday, September 1, 2009 09:00 a.m. (CET) Dial-in number: +41 52 267 07 07 PIN-Code: 406604
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 SWX 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: media@preciouswoods.com
Branche: Forestry & Timber
ISIN: CH0013283368
WKN: 982280
Index: SPI
Börsen: SIX Swiss Exchange / official dealing