Pergo AB Posts Q1 Operating Profit of $3.2M

Trelleborg, Sweden, April 18--Pergo AB reported first quarter report operating profit of SEK23m ($3.2 million), as compared to a loss of SEK233m ($32.9 million) in the first quarter of 2004. The company reported after tax for the period was SEK 20 million ($2.8 million) (-238). Earnings per share for the period were SEK 0.37 ($0.05) (-4.44). The result for the first quarter last year was burdened by non-recurring costs. The net turnover amounted to SEK713m ($100.9 million), down from SEK746m ($105.5 million). The decline in turnover was due to currency effects. Last week, CEO Göran Bernhoff and Sr VP Technology & IP Diane Tate have both informed that they will leave the company. The process of finding their successors has been initiated. CEO Göran Bernhoff, said "Pergo reports a profit improvement for Q1. Our North American business activities are responsible for this improvement. We are showing powerfully that streamlining our product supply is giving results. Sales to Lowe’s are continuing to climb strongly. "The restructuring scheme in Europe is going somewhat better than expected, and the investment project in a press for direct laminate flooring in the U.S. is going according to plan. Both projects are expected to be finalized during the summer. The company will thereafter be equipped for a growth phase. "Our forecast stands for full-year 2005 of significantly improved profits towards the end of the year," Bernhoff said.