Pfleiderer to hold discussions with banks

Wood-based panels manufacturer Pfleiderer will start financing discussions with its banks after warning of a significant fall in earnings.

The company said it no longer anticipated a continuation of the business revival indicated during the first quarter and pointed to lower sales volumes and price levels compared to 2008.

“Based on initial estimates, the EBITDA margin in the second quarter of 2009 will probably be single-digit percentage,” it said.

Pfleiderer said its key financials defined in the context of existing credit agreements may not be fulfilled at the end of the current quarter.

“Therefore, discussions will be held with the banks with which those credit agreements exist in order to achieve a broader framework of corporate financing. Pfleiderer AG expects these negotiations to result in higher financing costs.”