Precious Woods reported $4.8 million loss in 1H 2009

Sep 15, 2009. /Lesprom Network/. The global financial and economic crisis was felt on the tropical timber markets and also had a negative influence on the course of business of Precious Woods during the first half of 2009, the company said in a press release received by Lesprom Network. Total operating income for the 1H 2009 declined to $44.8 million, 29% less than in the previous year. The result from operating activities fell from $4.7 million in 2008 to $-3.7 million during the current year. The net loss amounted to $4.8 million. The Board of Directors and the Group Management implemented measures to improve the financial results in a sustainable way without jeopardizing the sustainable management of the company’s forest resources. Gabon and Central America succeeded to obtain reasonable results despite a reduced demand and lower sales whereas the businesses in the Netherlands and especially in Brazil produced sales and operational results which were unsatisfactory due to both external and internal reasons. Extraordinary expenses of around $2.2 million were incurred during the 1H 2009. A portion of these extraordinary factors could be compensated by gains from the sales of non-operating assets in the amount of $1.3 million, which resulted in a net impact of $0.9 million. Precious Woods is a world leader in the sustainable management and use of tropical forests. Based in Switzerland, our company employs some 2,300 people worldwide and has subsidiaries in Brazil, Costa Rica, Nicaragua, Gabon, Holland and Switzerland.