euro adhoc: Precious Woods Holding AG, Zug / Quarterly or Semiannual Financial Statements / Positive First-Half for Precious Woods Group (E)

Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.

In the first six months of 2003 the Precious Woods Group increased sales of timber by 69% to USD 4.285 million from USD 2.541 million achieved in the first half of 2002. Net profits increased to USD 820 thousand compared to a loss of USD 133 thousand incurred in the first six months of 2002. At the end of June 2003 shareholders' equity amounted to 77% of total capital.

Brazil: Sales at Precious Woods are always weaker in the first half compared to the second half as the timber harvest takes place from June to December. Fresh logs only become available in sufficient quantities and in all sizes during the second half. In the first half-year it is necessary to consume the existing stock of round wood. In 2002 first half sales were particularly weak so the current strong rate of increase cannot be assumed for the year as a whole. Precious Woods Amazon, Precious Woods Industries and Precious Woods Pará all contributed to the impressive rise in sales.

Central America: The gain in the first half year arising from the change in fair value of the growing trees amounted to USD 1.262 million compared to USD 975 thousand in the first half of 2002. In the medium and the long term the half-year results are less important than the fact that there has been a marked improvement in the growth of the trees in the largest finca which in the past had been a cause for concern. An initial 800 hectares of abandoned pasture have been acquired in Nicaragua. Trees will be planted on this land during during the current and coming years and further land purchases are planned.

Trading Company and Group: The Swiss trading company has been affected by the absence of major orders for pilings. On the other hand, sales of sawnwood to Germany, Switzerland and Austria have experienced strong growth and sales to Spain, Italy and Scandinavia have also increased. Group costs are rising in line with expectations. The expansion of the Precious Woods Group, the listing on the stock exchange and new projects all require a somewhat larger administrative organization.

Outlook: Precious Woods expects a significant increase in sales and profits for the full year 2003.

The detailed half-year results and accompanying commentary are sent to all registered shareholders and are available to all interested parties on the website

Further inquiry note:
Precious Woods Holding AG, Zug
Dr. Andres Gut, CEO
Tel. 41 1 245 80 10
Tel: 41 1 245 80 10
FAX: 41 1 245 80 12

Emittent: Precious Woods Holding AG, Zug c/o Militärstrasse 90 CH-8021 Zürich Tel: 41 1 245 80 10 FAX: 41 1 245 80 12 Email: WWW: ISIN: CH0013283368 WKN: 982280 Indizes: SPI Börsen: official dealing SWX Swiss Exchange

end of announcement euro adhoc

Branche: Forestry & Timber
Sprache: Englisch