Pfleiderer Says Laminate Business Remains Flat

Neumarkt, Germany, Aug. 19, 2010--Pfleiderer AG reported that revenue rose by 7.3% to $490 million from the first to the second quarter, although its laminate business remains flat.

Revenue posted for the first half of the year of $946 million was 6.4% higher than in the same period of 2009, the parent company of laminate maker Pergo said.

Half of the increase resulted from exchange-rate effects and the other half was caused by increased unit sales and higher prices, the company said.

"In all our markets, except for the laminate business in North America, we can see an upward trend," said CEO Hans H. Overdiek.

"The continuation of this positive development should indicate that we have broken the downward trend."

The proportion of revenue generated outside Germany was 71.8%, compared with 71.5% in the first half of last year.

Due to increasing costs, first-half gross profit decreased from $233.3 million to $202.6 million.

In the second quarter, Pfleiderer reported a 16.1% increase in EBITDA compared with the prior-year quarter.

A loss of $34.8 million is therefore attributable to the shareholders, compared with a loss of $3.59 million for the second quarter of 2009.

Pfleiderer said North American panel volumes increased significantly but unit sales of laminate flooring declined. Both product groups had to contend with falling prices, partially offset by falling raw-material costs.

Pfleiderer said it assumes that the second half of the year will be generally stronger than the first half. It anticipates it will post full-year revenue of just under $1.9 billion.

Pfleiderer said it still expects a net loss for the year, with earnings improvement next year.