Jun 14, 2011. /Lesprom Network/. On the basis of preliminary and unaudited figures, Pfleiderer AG recorded an increase in consolidated revenue of 8% in 2010 compared with the prior year to Euro 1,493 million, as the company said in a press release received by Lesprom Network. Due to high extraordinary expenses for restructuring and impairments of subsidiaries and goodwill, as previously announced, the Group posted a loss for the year (attributable to shareholders of Pfleiderer AG) of Euro 723 million. The loss per share amounted to Euro 12.47. Net debt increased to Euro 960 million as of December 31, 2010 from Euro 854 million a year earlier. Due to the large net loss, equity attributable to Pfleiderer shareholders amounted to minus Euro 301 million at the end of the year. Earnings from operating activities before interest, taxes, depreciation and amortization (EBITDA) for 2010 amounted to Euro 92 million, compared with Euro 117.9 million in 2009. Taking restructuring expenses into consideration, EBITDA for 2010 amounted to just Euro 40 million. The Group’s earnings before interest and taxes (EBIT) in 2010 were reduced by high extraordinary expenses to minus Euro 583 million. Excluding extraordinary expenses, EBIT amounted to minus Euro 15 million. In 2009, EBIT amounted to minus Euro 16.1 million, or plus Euro 8.2 million after adjusting for extraordinary expenses. The net financial expense for 2010 was Euro 79 million, compared with a net financial expense of Euro 48.8 million in the prior year. The increase was primarily a result of higher financing costs and higher debt. One of the main features of the year 2010 – not only for Pfleiderer but for the entire engineered-wood industry – was the continuation of dissatisfactory utilization of production capacities, which prevented price adjustments and increased the pressure to consolidate within the industry. Another important factor for profitability last year was the negative development of purchasing prices of key raw materials, which could not be offset by higher sale prices. Raw-material costs constitute 55%- 60% of total costs at Pfleiderer. Compared with the prior year, the price of wood increased by 19% in Western Europe, by 31% in Eastern Europe and by 9% in North America. There was a comparable development with prices of resin and glue rising by 17% in Western Europe, by 30% in Eastern Europe and by 12% in North America. Pfleiderer’s active capacity adjustments involving the closure of three plants, together with the sector’s general consolidation, yielded the first positive results in the first quarter of this year. Among other things margins were improved by higher utilization of capacity. The implementation of a restructuring concept developed jointly by Roland Berger and the Executive Board of Pfleiderer AG should help Pfleiderer to attain double-digit margins again in the medium term and thus to perform as well as its best competitors. The restructuring concept is the basis for the agreement that was announced on May 12 of this year with the Pfleiderer Group’s creditors, who are prepared to waive substantial receivables, to provide an additional credit line, and to participate in a capital increase. However, the agreement is still subject to receiving the approval of the hybrid bondholders and shareholders of Pfleiderer AG. A meeting of the hybrid bondholders has been arranged for June 20. The shareholders will then decide on the measures to be taken at an extraordinary shareholders’ meeting to be held on July 21, 2011. Hans H. Overdiek, Chairman of the Executive Board (CEO) of Pfleiderer AG: “The development of our business operations in the first five months of this year is encouraging and the agreement with the creditors is a great step forward. We now have to succeed in convincing the hybrid bondholders and our shareholders that there is no alternative to the full implementation of the restructuring concept.” The Pfleiderer Group is one of the worldwide leading manufacturers of engineered wood, surface finished products and laminate flooring.