Precious Woods half-year results 2007

Precious Woods in a period of growth

The half-year results demonstrate that Precious Woods continues to grow strongly. Compared to the same period a year earlier, total operating income was up 69%, from USD 25.0 million to USD 42.4 million. Net income amounted to USD 5.1 million versus a loss of USD 2.1 million in first half 2006. In the second quarter, the recently acquired Gabon-based companies already contributed substantially to the increase in turnover and net income. Precious Woods Europe performed better than expected. Precious Woods Central America’s result was in line with our forecast, whereas our Brazilian subsidiaries did not meet expectations. Revenues from emission rights and the generation of electricity were impacted by the shutdown of the power plant in Itacoatiara which lasted several weeks.

Further, the transition contract which is a prerequisite for the forest harvest at Precious Woods Pará has been signed last week. This will allow the harvest to commence this week – albeit with a significant delay. This is important for the second semester expectations. The delayed harvest will significantly impact the results of Precious Woods Pará in the third quarter - Precious Woods Europe will also suffer from the lower volume of timber supplied. However, in spite of this, the original profit expectations for the whole Precious Woods Group should be met or exceeded in 2007.

For details regarding report have a look at Half-Year Report 2007
For further details please have a look at www.preciouswoods.com

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