Wood-based panel manufacturer Pfleiderer AG has announced pre-tax profits of €119m for the first half of 2008 and will relocate an HDF plant from Canada to the US.
The company saw sales rise by 3.5% to €917m during the period, driven by its European business. North American revenue decreased primarily due to the closure of the La Baie MDF plant and exchange-rate effects.
Pfleiderer’s profits, down €2m on a year ago, were impacted by rising prices for raw materials and reduced scope for price adjustments.
It believes second half business could be affected by the economic consequences of the unsettled financial markets.
“The targets set last year of €2bn revenue and a 15% EBITDA margin in full-year 2008 must therefore be questioned,” said a Pfleiderer statement.
“At present, a shortfall on both targets of 5% to 15% is anticipated, but from today’s perspective, the company expects to surpass last year’s EBITDA.
Meanwhile, Pfleiderer is to relocate subsidiary Uniboard’s HDF plant from La Baie in Canada to Moncure in North Carolina, where it has bought a particleboard plant from competitor ATC Panel.
Pfleiderer said the Canadian plant had been unprofitable. It is investing €80m in the Moncure facility and hopes to benefit from the synergy effects of the plant’s close proximity to laminate flooring manufacturer subsidiary Pergo.
The HDF will be supplied directly to Pergo from Moncure, with the benefits of lower transport costs, improved reliability of supply and cheaper timber purchasing.
“Pfleiderer AG is already the market leader for laminate flooring in the North America region,” said Hans Overdiek, Pfeliderer AG CEO. “With this strategic step, we will now also achieve cost leadership and will thus emerge strengthened from the market crisis.”
