May 18, 2012. /Lesprom Network/. DLH experienced a difficult start to the new financial year. A significant slowdown in the group’s main European markets means that 1Q turnover of DKK 657 million ($112 million) is 8% below the same period last year. In particular, the group’s three large markets, Denmark, Sweden and France, saw a declining turnover, as the company said in a press release received by Lesprom Network. EBIT (earnings before interest and tax) totalled DKK 2 million ($340,622) for the 1Q 2012 against DKK 14 million ($2.4 million) for the same period last year. In the first three months of the year, the company achieved an EBIT margin of 0.3% against 1.9% last year. Financial expenses fell from DKK 10 million ($1.7 million) to DKK 9 million ($1.5 million) as a consequence of the smaller debt burden. Last year’s financial expenses were also positively affected by exchange rate gains of DKK 10 million ($1.7 million). The group’s results after tax (continuing operations) for 1Q amounted to a loss of DKK 10 million ($1.7 million) against profits of DKK 2 million ($340,622) for the corresponding quarter in 2011. “In 1Q 2012, we experienced a continuation of the difficult market conditions that have impacted on the construction sector and our main markets since 3Q 2011. The trend has adversely impacted on DLH’s turnover and gross profits. Against this backdrop, it has not been possible to maintain the same profitability as in 1Q 2011. We continue to reduce our costs and the decision to sell the American hardwood operation means that we can devote all our efforts to strengthening our European business and Global Sales,” says CEO Kent Arentoft. In 1Q, DLH has maintained its turnover in its Global Sales markets while European markets continue to be under pressure. As there continues to be significant general economic uncertainty in DLH’s key European markets, it is not expected that market conditions will improve in the second half year. Consequently DLH expects a turnover in the level of DKK 2.6-2.7 billion ($443 - 460 million) for the full year. DLH is a Danish owned group quoted on the Copenhagen Stock Exchange and since 1908 trading in timber and wood products all over the world.