Reduced demand for tropical timber has contributed to a US$4.8m first-half net loss for Switzerland-based Precious Woods.
The result compares with net profits of US$3.8m a year ago. Operating income totalled US$44.8m, down from US$63.5m in 2008.
Gabon and Central America operations recorded “reasonable” results despite reduced demand and lower sales, but the Netherlands-based business serving European customers and the Brazil operation produced “unsatisfactory” results.
Precious Woods said it had been in constructive talks with its banks regarding refinancing of loans, but its results meant some credit conditions could mot be met.
However, directors said it had implemented actions to improve group profitability.
