Pfleiderer posts sales and profits growth

Wood-based panel manufacturer Pfleiderer has reported “significant growth” in sales and operating profits in the first half of 2011.

The results, which include a 38% growth in profits (before interest, tax, depreciation and amortisation) to €54.1m represents good news for Pfleiderer which is having to implement financial restructuring under the weight of a large debt burden.

However, net losses were high at €74.9m (2010: €18.9m loss), though this primarily reflects a financial expense of €65.6m.

Sales rose during the period by 9.4% to €595m, with eastern Europe providing a significant growth driver.

Pfleiderer’s western Europe business posted a 2% decrease in second-quarter revenue, though profitability increased due to plant closures in Ebersdorf, Gschwend and Nidda, which largely eliminated excess production capacity in Germany.

Panel demand declined, except from home improvement stores, while surface-finished products increased, especially in the furniture industry, and laminate flooring grew 4% in Europe.

The eastern Europe business grew by 28.6% in the second quarter and not even a third increase in raw wood prices could dampen the effect of higher volumes and high sales prices. The region now makes up 33.5% of group revenue.

The North American business witnessed a 13.4% decline in sales.