Jun 22, 2007. /Lesprom Network/. Danish timber merchant Dalhoff Larsen and Hornemann A/S (DLH) continued positive results in its first quarter sales, operations and earnings. Net profit was about 58% higher than the same period of last year, and improvements in sales and results were present in all three divisions of the company. The group produced revenue of DKK 1.8 billion ($324.7 million), which is a 13% improvement on the corresponding period last year. Of this improvement just over 8 percentage points are attributable to acquisitions made in 2006. The group produced EBIT amounting to DKK 80 million ($14.4 million) compared to DKK 59 million ($10.6 million) in 2006. When adjusting for proceeds from the sale of non-current assets amounting to DKK 6 million ($1.1 million) in 2006, the net improvement in the operating profit is DKK 27 million ($4.9 million), corresponding to 51%. Operating margin was increased by 0.8 percentage points to 4.4%. The pre-tax profit for the period was DKK 56 million ($10.1 million) compared to DKK 40 million ($7.2 million) the year before. The period was characterized by progress in all three divisions even though supply problems and transportation bottlenecks restricted growth in the hardwood division. Although DLH faced difficulty in securing raw materials from the Republic of Congo, its sales in its hardwood division were up 5.7% to DKK 1.0 billion ($180.4 million). Sales in its building materials division also were up 16% to DKK 432 million ($77.9 million). The company estimates that it can generate sales revenues of DKK 7.5 billion ($1.4 billion) in 2007, and achieve an operating result of DKK 330 million ($59.5 million). Forecast for 2007 Based on developments in the first three months of the year and the group’s assessment of the market prospects for the remainder of the year, the previously announced forecast group revenue at a level of DKK 7.5 billion is maintained. This compares with DKK 7.2 billion ($1.3 billion) in 2006. As previously announced, the group expects an operating profit of approximately DKK 330 million ($59.5 million) and a profit before tax of approximately DKK 230 million ($41.5 million) compared to the DKK 302 million ($54.5 million) and 212 million ($38.2 million) respectively realized in 2006. One of the world's major timber wholesalers and a leading Danish building materials distributor Dalhoff Larsen and Hornemann is the largest producer of sustainable tropical hardwood in Africa. Its sales and procurement offices, warehouse and processing facilities are located in 33countries on 5 continents. DLH has approximately 4 000 employees. The company is listed at Copenhagen Stock Exchange.