Pfleiderer Misses Revenue, Earnings Goals

Neumarkt, Germany, March 31, 2009-- Pfleiderer AG said it missed its revenue and earnings targets last year.

In 2008, demand for engineered wood declined in all of the Pfleiderer Group’s sales regions, leading to falling prices for most products, the company said.

Consolidated revenue decreased by 3.6% to $2.37 billion.

EBITDA decreased from $331 million in 2007 to $298 million last year.

While most of this decline in margin took place in Eastern Europe, Pfleiderer said the region of Western Europe generated record margins.

“Pfleiderer will emerge from this crisis stronger than before,” commented CEO Hans H. Overdiek.

More than half of the decrease in revenue in 2008 was due to the closure of the plant in La Baie, Canada, the company said.

Whereas the market for laminate flooring contracted by 15%, Pergo said it posted growth of more than 24%. The decrease in revenue in North America of 9% was caused by exchange-rate effects and the closure of the plant in La Baie.

North America will continue to present great challenges to all market players in 2009, as the market for engineered wood is likely to shrink for the third consecutive year due to the real estate crisis, Pfleiderer said.

In 2008, demand for engineered wood declined in all of the Pfleiderer Group’s sales regions, leading to falling prices for most products, the company said.

While most of this decline in margin took place in Eastern Europe, Pfleiderer said the region of Western Europe generated record margins.

“Pfleiderer will emerge from this crisis stronger than before,” commented CEO Hans H. Overdiek.

More than half of the decrease in revenue in 2008 was due to the closure of the plant in La Baie, Canada, the company said.