euro adhoc: Precious Woods Holding AG, Zug / Annual Reports / Precious Woods Continues to Grow (E)

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Precious Woods increased sales of timber products by 27% from USD 9,76 million in 2002 to USD 12,42 million in 2003. Net sales (after freight cost, harbour fees and other sales deductions) increased by 22% from USD 9,09 to USD 11,05 million. Net profit increased by 11% from USD 2,16 to USD 2,40 million. Gross margin increased by 19% and operating profit by 14%.

The 2003 net profit would have been significantly higher were it not for one-off charges relating to the plantations in Costa Rica: 52 hectares of poorly growing plots planted from 1995 to 1997 were written off and technical revisions to the valuation were implemented. Together these one-off effects reduced net profit by USD 0,5 million. In Brazil, the temporary lack of orders for pilings -accounting for approximately 20% of sales in prior years - had to be compensated by alternate products some of which did not yet yield a full margin.

Precious Woods has raised nearly CHF 2 million from institutional shareholders via a private placement making use of authorised capital. Together with the ongoing availability of lines of credit recently renewed, the ongoing expansion of Precious Woods is assured. 600 hectares of pastureland were recently purchased for reforestation in Nicaragua and the program to purchase further forests in Brazil continues.

Precious Woods is optimistic for 2004. The growth of plantations in Central America is good and will lead to an increasingly growing profit contribution from this business unit. The start of 2004 has been the best ever also at Precious Woods Brazil.

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