Gascogne Group posted 1Q sales of Euro 79.3 million

May 04, 2012. /Lesprom Network/. Gascogne Group posted stable sales of Euro 79.3 million in the 1Q 2012. Gascogne Group is also pursuing discussions with all of its banking partners with the aim of ensuring sustainability of the resources used to finance its operations and development, as the Group said in a press release received by Lesprom Network. Wood segment's 1Q sales decreased by -8.3%, coming in at Euro 20.8 million. This drop is the result of a significant decline in demand this quarter combined with a reduction in plant activity over the period due to an unseasonably cold February (freezing conditions). Sawing was the most severely affected, with sales down 16% to Euro 9.6 million. The decorative products market was also down 10% to Euro 10.5 million, marked by a significant decline in Spain in particular given the sluggish market conditions. The trend should improve in the 2Q. The order book is filling up quickly for sawing and the three sawmills have been running at maximum capacity since 1st April 2012. For decorative products, marketing operations and the first effects of the sales reorganisation, effective as of 1st April, should also help to improve the trend. Paper segment's 1Q sales are up 5.3% to Euro 27.7 million thanks, in particular, to the implementation of a resale contract for self-generated electricity at the start of 2012. This operation has generated sales of Euro 1.4 million over 3 months. The traditional paper business activity showed a slight decline in volume over the period (-1%), while the average sales price remains stable. Sacks segment's 1Q sales are up 2% to Euro 30.8 million. The division is bolstered by the Mimizan site in particular, which recorded an increase of nearly 11%, bringing its sales to Euro 15.3 million. Volumes rose by 7% for industrial and consumer sacks, and the average sales price increased by 4%. The Nantes site remained stable, with the decrease in volumes being offset by the increase in the average sales price. Sales at foreign sites were down due to lower volumes. Gascogne is an international company. It has four complementary and fully integrated divisions focused on generating value in specific market segments.