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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.
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05.03.2010
In 2009, Precious Woods achieved revenues of USD 87.8 million from timber sales,
biomass energy, emission rights and an increase of biological assets. The
disclosed decline is 24.8% compared to the prior year (USD 116.7 million), and
19.8% adjusted for exchange rate effects.
The reported decline in sales for the prior financial year is to some extent
better than the half-year result of 2009 (-29.5%) and reflects the slightly
better market environment in the last quarter of 2009. Altogether, the decline
is in line with the total market for tropical timber. The Board of Directors and
the Group Management were reacting to the continuous unsatisfactory market
developments with immediate restructuring measures, increase in efficiency and
strengthening of Precious Woods´ market position.
Precious Woods Gabon has managed to achieve the goals by obtaining satisfactory
volumes and sound prices during the second half-year. The veneer plant of TGI
has confirmed the turnaround of 2009 and by the end of January 2010 also
received the FSC certification for the chain of custody. In the second
half-year, timber sales volume of Precious Woods Amazon suffered due to a delay
caused by the authorities granting the harvest permit and, as a consequence, due
to the commercially diminished timber quality from alternative harvest areas. In
return, revenues from sales on the local Brazilian markets almost doubled
compared to the previous year. Sales of energy in Brazil declined due to reduced
biomass volumes stemming from the saw mill and softer wood species with a lower
fuel value. Earnings from emission rights hence remained below previous year´s
level. The lower turnover of Precious Woods Europe leads back to a strong drop
in demand on the European markets in the first half year and a considerable
reduction in stocks. The increase of biological assets in Central America
followed the positive long-term trend.
Restructuring measures, increase in efficiency and market positioning
The Board of Directors and the Group Management reacted swiftly to the negative
market developments. Assuming that the market environment would only improve
slowly, additional measures have been implemented during the second half-year:
far reaching restructuring measures, increase in efficiency and concentrated
sales efforts that will be continued throughout 2010. The associated costs and
adjustments will be fully charged to the annual account of 2009. Precious Woods
Holding will disclose a clearly negative and unsatisfactory result for the year
2009. The various implemented measures will improve the productivity and market
position of the group and positively influence future operational results.
Diversification favors market opportunities
With a diversified resource and market policy, as well as the comprehensive FSC
certification, Precious Woods is well positioned: on the one hand with
sustainable forest management in Latin America and Africa, and on the other hand
with a broad product portfolio ranging from veneer, round and sawn wood to the
energy production and CO2 emission certificates. The Group Management is
confident that the consistent aligned strategic focus on sustainability and the
already introduced and implemented measures are a solid base for profitable
growth.
All stated figures in this media release are provisional and not yet audited.
The final audited accounts will be published on April 26, 2010.
Conference call for analysts, investors and media
The conference call will be conducted by Ernst A. Brugger (Chairman of the
Board/CEO a.i.) and Cornelia Ge-hrig (CFO). To join conference call please dial
in at least 5 minutes before the beginning of the conference. The conference
will be held in German.
Friday, March 5, 2010
10:00 a.m.(CET)
Dial-in number: +41 (0) 44 580 46 23
PIN-Code: 94785483#
end of ad-hoc-announcement
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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
SIX Swiss Exchange since March 2002. Further information about Precious Woods is
available at www.preciouswoods.com.
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
end of announcement euro adhoc
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~
issuer: Precious Woods Holding Ltd.
Baarerstrasse 135
CH-6301 Zug
phone: +41 44 245 80 10
FAX: +41 44 245 80 12
mail: office@preciouswoods.com
WWW: http://www.preciouswoods.com
sector: Forestry & Timber
ISIN: CH0013283368
indexes: SPI
~
stockmarkets: official dealing: SIX Swiss Exchange
language: English
http://www.ots.at/pressemappe/EASY_100003569
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