(EQS Group-Media / 28.04.2014 / 07:00)
PRECIOUS WOODS: FOLLOWING A DISAPPOINTING YEAR 2013 THE GROUP STARTED
POSITIVELY IN 2014
28 April 2014, Zug, Precious Woods achieved a slightly increased turnover
of USD 45.3 million and operationally a balanced EBITDA. However, essential
restructuring measures especially in Europe led to exceptional effects and
a negative Group-EBIT of USD -15.5 million, following USD -13.3 million in
the previous year. The annual result is thereby distinctly worse than
expected in the half-year report. Nevertheless, a significant increase in
sales by 43% for the first quarter 2014 confirms the operational progress.
A balanced EBIT is targeted for 2014.
Annual Financial Statement 2013
- Small 3.3 percent sales increase to USD 45.3 million; operationally
balanced EBITDA
- EBITDA (including exceptional effects) of USD -8.8 million, following
USD -3.8 million in 2012
- EBIT (including exceptional effects) of USD -15.5 million (previous
year: -13.3 million), after restructuring effects in PW Europe
Q1 2014 and forecast
- 43 percent sales increase to USD 13.7 million in Q1
- Positive EBITDA PWA and PWG in Q1
- For 2014: positive EBITDA and balanced EBIT envisaged
Operational progress overshadowed by exceptional effects
Both Precious Woods Amazon (PWA) as well as Precious Woods Gabon (PWG)
realised considerable progress in 2013. PWA achieved a positive EBITDA,
even though extraordinary early and heavy rainfalls from October onwards
hampered the harvest and thereby the supply for the sawmill. Achievements
were also made in the long and elaborate process to secure further land
titles: The company owns the relevant legal titles for around 320,000
hectares out of 530,000 hectares.
The veneer plant (TGI) in PWG underwent a comprehensive modernisation in
2013, which positively influenced production and productivity from the
fourth quarter onwards. However, the associated investments and maintenance
breaks impacted the result 2013. Additionally an illegal strike at TGI in
spring time affected the production for 6 weeks. Exacerbating in Gabon was
a capacity shortage in the harbour in the fourth quarter 2013, which
prevented any exports nation-wide.
Precious Woods Europe (PWEU) strained the Group's annual result massively:
given the persevering market weakness in Europe the inventory sale was
consequently concluded in Autumn 2013 and the business unit operationally
closed. This burdened the result with one-off effects of approx. USD 8
million and this led to a negative group EBIT of USD 15.5 million.
Strengthened and lean organisation
As of October 2013 the sales strategy for tropical timber and tropical
timber products has been revised and implemented on Group level under the
leadership of Stéphane Glannaz as new Chief Commercial Officer. Markus
Brütsch is the new Chief Financial Officer since the beginning of
2014; he leads the financial planning and monitors particularly the Group's
reporting and works closely together with the financial manager in Brazil
and Gabon. Those two gentlemen together with Katharina Lehmann (delegate of
the Board of Directors) and Ernst A. Brugger (President of the Board of
Directors) form the Steering Committee of Precious Woods, which closely
controls and leads the strategic and operational business development.
Consequent liquidity management
The liquidity in the difficult year 2013 could be secured due to consequent
cost management on all levels. In 2014, the company will further reduce
costs, strengthen the advancements of results and thereby further improve
the liquidity. A contribution to this has been the sale of our stake in GWW
in March 2014, a company specialised in hydraulic engineering in The
Netherlands, in which PW Holding through PW Europe had held shares of 50%.
This investment had lost its strategic relevance for Precious Woods due to
the new group-wide sales organisation. The greatest challenge in the new
business year is the repatriation of convertible loans, which are due in
December 2014. Negotiations with lenders as well as interested investors
are underway.
Strong sales increase and considerably positive EBITDA in the first quarter
2014
Numerous measures to improve operational performance at PWA and PWG as well
as the sales reorientation caused during the first quarter 2014 the
realisation of planned production volumes in both countries, and year on
year an increase in sales by 43% to USD 13.7 million, and thereby achieved
a considerably positive EBITDA on Group level. In view of the good order
backlog for 2014, and without any major unexpected external factors in
2014, a positive EBIT should thereby be achievable. Thus today, the Board
of Directors and management assume with adequate caution that Precious
Woods after long and hard efforts has realised the turnaround and is on its
way back to growth and profits.
General Annual Meeting 21 May 2014
This year's General Annual Meeting takes place on 21 May 2014 in Zürich.
The invitation to the General Annual Meeting together with the complete
agenda as well as the motions proposed by the Board of Directors will be
published in the Swiss Official Gazette of Commerce (SOGC) and on Precious
Woods' website on 30 April 2014.
The full Annual Report is now available for download from the website
www.preciouswoods.com.
Further Information:
Precious Woods Holding Ltd, Prof. Dr. Ernst A. Brugger (Chairman) and
Markus Brütsch (CFO)
Tel. +41 41 726 13 13, media@preciouswoods.com
Precious Woods is an international company active in the sustainable
management and use of tropical forests. The company's core activities
include sustainable management of tropical forests, timber processing and
the trading of FSC-certified timber products. The generation of emission
rights and electricity from wood waste represent further integral elements
of the company's business. Additional information about Precious Woods can
be found at www.preciouswoods.com
This document includes forward-looking statements that reflect the
Company's intentions, beliefs or current expectations and projections about
the Company's future results of operations, financial condition, liquidity,
performance, prospects, strategies, opportunities and the industry in which
it operates. Forward-looking statements involve all matters that are not
historical fact. Such statements are made on the basis of assumptions and
expectations which, although the Company believes them to be reasonable at
this time, may prove to be erroneous.
End of Corporate News
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Additional features:
Document: http://n.equitystory.com/c/fncls.ssp?u=GJVRMQQSPI
Document title: Media Release 28.04.14
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Issuer: Precious Woods Holding AG
Key word(s): Enterprise
28.04.2014 This Press Release was distributed by EQS Schweiz AG.
www.eqs.com - news archive: http://switzerland.eqs.com/de/News
The issuer is responsible for the contents of the release.
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Language: English
Company: Precious Woods Holding AG
Militärstr. 90
8021 Zürich
Switzerland
Phone: +44 245 81 21
Fax: +44 245 80 12
E-mail: media@preciouswoods.com
Internet: www.preciouswoods.com
ISIN: CH0013283368
Valor: 982280
Listed: Freiverkehr in Berlin, München, Stuttgart; Frankfurt in
Open Market
End of News EQS Group-Media
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264887 28.04.2014
(END) Dow Jones Newswires
April 28, 2014 01:00 ET (05:00 GMT)
