Precious Woods Holding Ltd.

euro adhoc: Precious Woods Holding Ltd.
quarterly or semiannual financial statement
Precious Woods achieves solid first quarter result

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3-month report


Precious Woods increased net sales of timber and energy by 187% to USD 33.3 million compared to the same period of the prior year. The first quarter operating result increased by 59% to USD 4.0 million and the net profit grew by 48% to USD 3.8 million compared to prior year. The increase in sales and profit was primarily due to the newly acquired companies in Gabon; however, organic growth still contributed 23% to the increase in trading sales.

The acquired business in Gabon developed well, in line with expectations: In the first quarter, the Gabonese companies achieved sales of USD 19.1 million and an operating profit of USD 1.9 million. Brazilian operations contributed USD 0.7 million to the operating profit, with the improvement mainly due to the restructuring programs implemented in the prior year. The temporary shut down of our saw mill in Belém will only impact cost in the second quarter.

On the other hand, the operating result of the trading company Precious Woods Europe lagged expectations. This company not only suffered from delays in shipments from Brazil at the end of 2007, but also from the increasing replacement values for timber. The sales prices for timber stabilized at high level. In order to support the integration and growth of the Group, management resources at the corporate head quarter were strengthened. Associated corporate overhead expense increased, however, below the growth of Group sales.

Precious Woods (SWX: PRWN) is an international company active in the 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 company´s 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

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ots Originaltext: Precious Woods Holding Ltd.
Im Internet recherchierbar:

Further inquiry note:
Precious Woods Holding AG, Zug
Dr. Ted Scheidegger, CFO
Tel.  +41 44 245 80 10

Branche: Forestry & Timber
ISIN:      CH0013283368
WKN:        982280
Index:    SPI
Börsen:  SWX Swiss Exchange / official dealing

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