Precious Woods Holding Ltd.

euro adhoc: Precious Woods Holding Ltd.
Financial Figures/Balance Sheet / Precious Woods: Sales growth of 17%, extraordinary and non recurring adjustments at year end lead to a negative result for 2008

@@start.t1@@--------------------------------------------------------------------------------   Disclosure announcement transmitted by euro adhoc. The issuer is responsible   for the content of this announcement. --------------------------------------------------------------------------------@@end@@

Company Information


For the full year of 2008, Precious Woods reports revenues of USD 116.7 million composed of sales of timber, energy, emissions rights, as well as the increase of the value of the biological assets. This corresponds to a growth of 17% compared to 2007 (USD 99.8 million). The exchange rate adjusted increase amounts to 10%, which is composed of organic and acquisition related growth.

The expected sales for 2008 could not be reached due to a slowdown in demand in the Netherlands and - as previously announced - due to production related issues at the veneer factory in Gabon. Revenue from CO2 emission rights stayed on track despite declining prices. High uptime at the energy plant in Itacoatiara, Brazil led to a good sales volume. The increase of the value of the biological assets in Central America followed the stable long-term trend.

Challenging fourth-quarter and negative year end result The fourth-quarter was marked by the consequences of the financial crisis and global economic downturn. Demand for timber products on local and export markets declined and sales prices came under pressure. The negative economic development had a significant impact on prices of CO2 emission rights on the European market.

Due to these circumstances, the operating result of Precious Woods for the year 2008 will be unsatisfactory. Additionally, non-recurring extraordinary items call for adjustments, which will lead to a clear loss.

The Group Management and Board of Directors decided at the beginning of the third-quarter to suspend all planned capital expenditure. At the same time, measures to cut costs, slim down operations and improve the operating cash flow were implemented.

Outlook The timber industry is suffering from a major decline in demand. The outlook for the first-quarter 2009 for Precious Woods varies depending on the specific markets and the product lines. With the production issues at the veneer plant in Gabon resolved, output and sales are performing well. The utilization of the plant is guaranteed for the first three months of 2009; some orders cover the period until the first semester. Sales of FSC-certified logs and sawn timber show a satisfactory trend; thanks to the FSC certification, prices could be held stable or in some cases even be increased.

We expect a promising development in sales of FSC-certified sawn timber on the local Brazilian market. Industrial companies in the Manaus area, as well as the public authorities in São Paulo start to differentiate and specifically request timber coming from ecologically and legally sound sources. However, on the traditional markets of Precious Woods Europe, the demand for sawn timber products shows a clear decline. A strong drop in prices for teak in the Asian market also challenges our organization in Central America.

Precious Woods: Well diversified and strategically positioned The diversified resources and market position represents one of the strengths of the Precious Woods Group: With sustainably managed and FSC-certified forests in Latin America and Africa, as well as a broad product mix which ranges from round wood, veneer and sawn timber to energy production and CO2 emission certificates, risks are widely spread and market opportunities considerable. With our strategy clearly focused on sustainability and the measures implemented to improve productivity, we are confident to be able to master the challenges ahead.

All previously stated figures are preliminary and not yet audited. The final audited accounts will be published in April 2009.

Precious Woods 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

@@start.t2@@end of announcement                                                 euro adhoc

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

Further inquiry note:
Patrick Mauron
Head of Corporate Communication
Precious Woods Holding Ltd.
Militärstrasse 90
CH-8021 Zürich
Tel.:    +41 44 245 81 20

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

Weitere Meldungen: Precious Woods Holding Ltd.

Das könnte Sie auch interessieren: