Pfleiderer continues along its growth path in first half of 2008
30/07/2008 - 12:30
Earnings impacted by higher prices for raw materials, selective price pressure and special expenses for plant closure – Forecast for full year revised downwards...
On the basis of preliminary figures, Pfleiderer AG increased its consolidated revenue in the first half of 2008 (January 1 – June 30, 2008) by 3.5% to €917 million (H1 2007: €886 million). The regions of Western Europe and Eastern Europe were the growth drivers, while revenue decreased in North America primarily due to the closure of the La Baie plant and exchange-rate effects.
Earnings before interest, taxes, depreciation and amortization (EBITDA) of €119 million were similar to the prior-year level (H1 2007: €121 million). Earnings were impacted by rising prices for raw materials and reduced scope for price adjustments. EBIT also includes expenses of €9.8 million for the closure of the MDF plant in La Baie, Canada. EBIT amounted to €55 million, compared with €70 million in the first half of 2007. Earnings per share for the first half of 2008 were 10 euro cents (H1 2007: 43 euro cents). Without the plant closure of La Baie, earnings per share would have been 22 euro cents.
Pfleiderer AG assumes that its business in the second half of 2008 could be affected by the economic consequences of the ongoing crisis of the financial markets. At present therefore, Pfleiderer AG sees only limited opportunities to pass on the increases in raw-material costs to the required extent in the short term. The targets set last year of €2 billion revenue and a 15% EBITDA margin in full-year 2008 must therefore be questioned. At present, a shortfall on both targets of 5% to 15% is anticipated, but from today’s perspective, the company expects to surpass last year’s EBITDA.
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