Precious woods achieves strong first-quarter results

Compared to the same period of the prior year, Precious Woods increased net timber sales by 13% from USD 10.3 million to USD 11.6 million. Total operating income (including the increase in value of the plantations in Central America and revenues from the sale of emission rights) rose by 19% in first quarter 2007, from USD 11.8 million to USD 14.0 million (un-audited figures). As there were no significant changes in the basis of consolidation compared with the same quarter last year, this strong performance is the result of organic growth.

First quarter net profit amounted to USD 2.5 million, compared with a net loss of USD 0.1 million incurred in first quarter 2006. The turnaround was mainly driven by improvements in Precious Woods’ core business. In Brazil the completed restructuring has gained traction. The European trading company improved sales and margin partially on the back of positive price and currency effects.

From the second quarter, the minority interest acquired in March and the acquisition of two African-based companies in April will increase Group turnover by over USD 10 million per quarter as well as boost profits. Although the results of a single quarter should not be overrated, provided there are no serious setbacks or major, unexpected problems, Precious Woods can look forward to a good year in 2007. Precious Woods confirms original sales and profit expectations for the full year.

For further information please have a look on www.preciouswoods.com

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