Pergo Swings to Profit for 2005
Stockholm, Sweden, February 20, 2006--Pergo this morning reported its financials for the year 2005 and the fourth quarter. The company reported earnings after tax for the year of SEK 166 million (US$21.2M) verses a loss of SEK 196 million (-US$25 M).
The earnings per share for the year was SEK 3.07 (US$0.39) compared with a loss of SEK(3.68) -US$0.47).
The company reported sales for the year were SEK 3,015 million (US$ 384.2M), compared with SEK 2,780 million (US$354.3M) in the prior period,.
Net sales for the fourth quarter were SEK 816 million (US$104), verses SEK 682 million (US$97M) in the fourth quarter of 2004.
Net sales from the North American operations, accounting for approximately 61% of the company's sales, increased to SEK 1,847 million (US$235.4M), compared with SEK 1,647 (US$209.9M) in the year ago period.
Net sales in the European operation increased to SEK 1,064 million (US$135.5 M), verses SEK 1,037million (US$132.1M).
The full year's operating profit was SEK 174 million (US$22.2M) compared with a loss of SEK191 million or -US$24.3M).
The fourth quarter's operating profit was SEK 132 million (US$ 16.8M), compared with SEK 16 million (US$2M).
Legal settlements contributed SEK 104 million (US$13.3M) to total operating results for the fourth quarter. Total legal expenses incurred for these settlements in 2005 were SEK 35 million (US$4.5M).
Excluding items affecting comparability, the operating profit for the full year was SEK 81 million (US$10M) compared with SEK62 million (US$7.9M) in the year ago period and for the fourth quarter SEK 19 million verses SEK16 million (US$2M).
Capital expenditures for the year were SEK 258 million (US$32.9) verses SEK184 million) (US$23.4M). The most significant investment was for a state-of-the-art direct laminate bonding line in North America.
Total depreciation and amortization was SEK 130 million (US$16.6M) compard with SEK 281, million (US$25.9).
Cash flow from ongoing operations over the year was SEK 129 million (US$16.4 million), verses negative SEK 38 million (US$ 4.8) in the year ago period. Cash flow for the fourth quarter was SEK 96 million (US$12.2 M) compared with SEK 52 million (US$6.6M).
Discussing the results Pergo CEO Tony Surrus said, "Today Pergo is pleased to report its improved annual and Q4 results for 2005. It was a year of significant progress with major capital projects and plant consolidations completed. The company also made significant organization changes and implemented profit improvement programs throughout the company. The Q4 result reflects accelerating growth in sales and profits and improvement in cash flow and working capital utilization.
"In Q4, consolidated net sales in local currency grew by 8% on a year over year comparison basis. Q4 sales in the North American market were particularly strong, with year over year growth in local currency of 12%. Our European business also grew with a rate of 3% in local currency for the quarter on a comparison basis.
"In Q4, operating profit excluding items affecting comparability increased to SEK 19 million from SEK 16 million realized in the comparable period last year. Higher sales and an improved business cost model were the primary contributors to the result.
"The European improvement program, initiated in the Q3 which was designed to save annualized cost of SEK
100 million, remains very much on track. We are confident that the savings will be fully realized in 2006. Our focus in 2006 will continue to be on the key metrics of sales and profit growth, with improved margins and working capital utilization.
"Assuming stable economic and market conditions during 2006, we believe our markets will continue to provide excellent growth prospects. This growth will occur throughout the year on a seasonal and variable basis as our major account programs are implemented."
Related Topics:Mohawk Industries