Recession impacts on Pfleiderer results

Wood-based panels manufacturer Pfleiderer continues to be hit by the global recession, reporting in its latest six-month figures that it was unable to fulfil financial agreements with its creditor banks.

Earnings and sales in the first half of the year were both hit “significantly”. Revenue fell by 24.5% compared with the same period in the previous year to €692.4m, while EBITDA fell by 33.8% to €79.1m.

However, despite the sharp drop in revenue, the group was able to increase its gross margin compared with the previous year from 25.7% to 26.2%, thanks to lower raw material prices, efficiency improvements and consistent cost reductions.

“Our half-year results are a reflection of the global financial and economic crisis,” said Hans Overdiek, CEO of Pfleiderer. “We are adjusting to this situation with strict cost management as well as innovative product solutions.

“With regards to the talks we are holding with our banks, we are confident that we will bring them to a successful conclusion in the coming months and will thus secure the group’s long-term financing.”