Feb 28, 2007. /Lesprom Network/. MDAX-listed Pfleiderer AG has achieved the best results in its history, based on preliminary figures for the year 2006, and has slightly surpassed its guidance for the full year. In fiscal 2006 (January 1 to December 31, 2006), revenues rose by 71% to Euro 1.4 billion compared to Euro 829.3 million in 2005. In addition to strong growth in Pfleiderer's markets, this dynamic development was particularly due to the successful integration and consolidation for the full year of the Kunz engineered wood group. In addition, systematic expansion of the group’s engineered wood activities in Eastern Europe and North America also led to increased revenues. This positive operating environment is reflected by EBITDA, which rose by around 100% to Euro 208.1 million compared to Euro 104.1 million in 2005. This is impressive evidence of the group's enhanced profitability. Despite the much higher prices paid for raw materials, Pfleiderer’s profitability and cost structures have greatly improved. This was aided by the development of other operating income and expenses resulting from outsourcing pension commitments in Germany. EBIT rose by around 140% to Euro 133.0 million compared to Euro 55.4 million a year earlier. The group's operating profit before income taxes (EBT) for continuing operations also improved significantly. EBT amounted to Euro 92.4 million, 161% higher than the previous year's figure of Euro 35.4 million. Net earnings for the group rose by 191% to Euro 83.9 million versus Euro 28.8 million in 2005. Earnings per share for continuing operations rose from Euro 0.56 to Euro 1.00. Basic earnings per share rose from Euro 0.63 to Euro1.67, while diluted EPS rose from Euro 0.67 to Euro 1.66. Business Center Western Europe profited from strong demand from the Western European furniture industry, as well as from the successful integration of the German Kunz organization. The group achieved revenues of Euro 774.0 million in Western Europe (Euro 551.8 million in 2005), an increase of 40%. Earnings before interest, income taxes and depreciation (EBITDA) improved to Euro103.6 million (Euro 63.0 million in 2005). Here too, synergies and economies of scale were major factors in achieving this excellent result. Cost structures have been further optimized by the centralized control of strategic procurement and purchasing activities by Pfleiderer and Kunz. At the same time, focusing on market segments through independently operating business units has also had a positive effect. Dynamic growth in the furniture industries of Poland, Russia and other Eastern European markets also had a positive impact on business in Business Center Eastern Europe during the past fiscal year. Initial consolidation of the newly acquired Polish glue manufacturer Silekol and the production roll-out at the Russian particleboard plant also boosted revenues. Revenues posted by BC Eastern Europe rose by a good 15% to Euro 285.8 million compared to Euro 247.7 million in 2005. Despite start-up costs at the new Russian plant at Novgorod, EBITDA reached Euro 56.5 million compared to Euro 48.0 million in 2005. Due to a significant rise in raw material costs and one-offs related to the exercise of stock options as part of the stock option plan, the EBITDA margin was slightly down at 18.8%, compared to 19.4% in the previous year. Fully consolidated for a full year for the first time following the Kunz acquisition, Business Center North America posted total revenues of Euro 349.6 million for 2006. This Business Center profited in particular from good market conditions for raw and surfaced products in North America. With EBITDA of Euro 52.5 million, its gross margin amounted to 15.0%. The panel division was able to fully compensate slower revenue and profitability development in laminate flooring. Outlook for 2007 and 2008 As a result of the positive conditions, the executive board anticipates revenues of Euro 1.6 billion and EBITDA of at least Euro 235 million in the year 2007, representing an EBITDA margin of around 15%. The full acquisition of Pergo AB, in which Pfleiderer currently has a 96.6% equity interest, can contribute to additional increases in revenues and earnings in 2007. The executive board expects the Pergo Group to generate revenues in excess of Euro 300 million and EBITDA of over Euro 35 million in full-year 2007. Against this backdrop, the executive board anticipates total revenues in excess of Euro 2.0 billion and an EBITDA margin of over 15% for the whole group in 2008. MDAX-listed Pfleiderer AG is a leading supplier of engineered wood, surface finished products and laminate flooring. With over 5 100 employees and 20 production sites in Eastern and Western Europe and North America, the Pfleiderer Group expects revenues exceeding Euro 1.4 billion for fiscal 2006. By vigorously internationalizing its business operations, Pfleiderer expects to increase the foreign share of its sales to 45%.