Leading hardwood supplier DLH Group has reported a strong upward trend in third-quarter business and has also concluded the sale of its Malaysian operations.
The company recorded pre-tax profits of DKr2.2m (2009: DKr49.4m loss) from sales of DKr834.7m (2009: DKr847.1m). The UK was the company’s eighth largest market with sales of DKr97m.
DLH said implementation of its “Back to Black” turnaround plan, commenced back in March, was progressing well with improved margins, lower costs and a strong cash flow. The plan is designed to help DLH concentrate on its core trading and logistics operations and divest forestry and production businesses.
Three business have also been divested since the end of the second quarter, the most recent being the Malaysian operations on November 10, which releases about DKr85m in capital for the group.
The group’s land and buildings in Belem, Brazil have been sold with the takeover date set for December 31 at the latest. DLH said it would continue to have purchasing and export activity in the country.
The group’s “I-dry” kiln-drying and warehousing facilities in the Netherlands were sold off in September, while Pennsylvania-based PW Hardwood LLC was an earlier divestment.
DLH has also put up its forestry and sawmilling production facilities in Congo-Brazzaville and Gabon for sale through KPMG Corporate Finance in Paris. Due diligence has been completed and negotiations have been commenced with potential purchasers.
