• Restructuring successfully completed

• 2011 revenues better than projected at €689 million

• Significant investments in all five German locations

• Good start to 2012

Neumarkt, Germany – Pfliederer, an international producer of engineered wood, has successfully completed restructuring of its business activities in Western Europe. The company also improved earnings and profitability significantly in 2011.

Revenues for the Business Center Western Europe (BC West) reached a betterthan- projected €689 million, nearly equaling the previous year’s level of €692 million despite the closure of three production sites in Germany as part of a restructuring plan. Pfleiderer Holzwerkstoffe GmbH is BC West’s parent company. These revenues no longer include laminate flooring producer PERGO’s European business activities, which are up for sale (prior-year value adjusted).

Operating earnings before interest, taxes, depreciation and amortization (EBITDA) adjusted for restructuring costs improved last year (without PERGO Europe) by approximately 33% or €18.6 million to €74.2 million (2010: €55.6 million), according to preliminary figures. This corresponds to a margin of 10.7% of revenue, following 8.0% the previous year.

Accounting for the costs of restructuring, EBITDA increased by approximately 187% or €41.4 million to €63.5 million (2010: €22.1 million). This corresponds to an EBITDA margin of 9.2% of revenue (2010: 3.2%). The marked increase in earnings and returns can be attributed a larger amount of higher-quality products, price increases for raw particleboard and surface-finished panels, as well as improved efficiency throughout the Group. All five production sites in Germany (Neumarkt/Oberpfalz, Gütersloh, Arnsberg, Leutkirch and Baruth) developed positively in 2011.

Following completed restructuring, the Pfleiderer Holzwerkstoffe Group plans significant investments in its German locations in order to secure and improve their ability to compete. Including last year’s investments, planned expenditures from 2011 until 2013 total more than €110 million. Of this total, more than €40 million is earmarked for the current year. The investments are to be financed internally from the Group’s cash flow.

Pfleiderer has gotten off to a good start in Western Europe in 2012. Thanks to internal progress and stable building activity, BC West’s revenues and (more importantly) earnings have continued to improve. Revenues (without PERGO Europe) in January and February were up 2% on a cumulative basis compared to the same period in the previous year. EBITDA increased by a further 37%, from €9.3 million to €12.7 million, for a margin of 11% (previous year: 8.1 %).

Michael Wolff, Chairman of the Management Board of Pfleiderer Holzwerkstoffe GmbH: “The very tough, but successful restructuring process in Germany has made an important contribution toward bringing the entire Pfleiderer Group back on the winning track. Pfleiderer’s business activities are once again running smoothly and steadily. Our ambitious investment program also shows that we are continuing to improve our locations’ ability to compete.”

Source: Pfliederer

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