Pfleiderer Revenues Drop 20 Percent in 2009

Neumarkt, Germany, March 19, 2010--Revenue for Pfleiderer AG fell by 20.4 percent in 2009, to  1.38 billion euros from 1.74 billion euros in 2008.

Despite structural adjustments and cost savings of approximately 100 million euros, earnings before interest, taxes, depreciation and amortization fell significantly to 100.4 euros, compared to 223.7 million euros in 2008.

Pfleiderer said it doesn't expect improved profitability until the second half of 2010 at the earliest, so it is assuming a net loss for this year.

Ten percentage of the revenue decline were due to falling unit sales, seven percentage points by falling prices and three percentage points by exchange-rate effects.

“The year 2009 was very challenging, especially in the second quarter, which saw declines of 30 percent in some areas," said Chairman Hans H. Overdiek.

"While we started at an early stage to prepare the group for the worsening crisis, the severity of the market slump or its scope was not to be foreseen."

In North America, the Pfleiderer Group’s revenue of 401.8 million euros
was close to the prior-year level (404.9 million euros), although the flooring
market and the panel market contracted significantly.

Unit sales of laminate flooring increased by roughly five percent, contrary to the market trend,so Pfleiderer’s share of a shrinking market increased again to more than 30 percent.