Pfleiderer Will Miss Earnings, Sales Projections

Neumarkt, Germany, July 30, 2008--Pfleiderer AG. said it expects to miss its full-year sales and earnings projections by as much as 15 percent as global financial market conditions makes it harder to pass on higher raw material prices to customers.

Pfleiderer previously said it sees full-year sales reaching 2 billion euros, with an EBITDA margin of 15 percent. But the company still expects its full-year EBITDA to exceed 2007.

In the first six months of this year, EBITDA eased to 119 million euros from 121 million euros, while earnings per share slumped to 0.10 euro from 0.43 euro in the year-earlier period.

Excluding costs to shut a factory in Canada, earnings per share would have fallen to 0.22 euro.

First-half sales rose 3.5 percent to 917 million euros, helped by growth in Western Europe and Eastern Europe, while the plant closure in Canada and exchange-rate effects led to a decline in North American revenue.