Pfleiderer Cuts Jobs in Pergo Integration

Neumarkt, Germany, August 3, 2007--Pfleiderer AG said it will close sites and cut 180 jobs in North America to integrate the laminate flooring business of Pergo, which it acquired in March. It also cut its full-year earnings target due to weak business in the U.S.

The company said it expects annual savings of 25 million to 30 million euros starting in 2008 due to the restructuring measures, Pfleiderer said in its first-half financial report.

Restructuring costs came to 20 million to 25 million euros in the first half of the year, including costs for changes in Europe.

For the second half of the year, the German supplier of engineered wood, surface-finished products and laminate flooring expects restructuring costs in North America of between 20 million and 25 million euros.

The company said it has suffered from a weaker US real estate market and shrinking consumer spending in the country.