Pfleiderer Grajewo to regain profitability by 2011?

2010-03-05

Pfleiderer Grajewo, a company specialising in the production of furniture materials, expects to achieve a net profit margin once more in 2011. However, it does not expect to achieve a net profit this year, the company's senior management claimed.
Pfleiderer hopes that as the economic situation improves demand will likewise increase for its products. Simultaneously, it is considering increasing the prices of its materials and raw materials, the dynamic for which may be higher than in the case of sales prices.
This year Pfleiderer Grajewo's senior management is hoping to trim its costs by at least PLN 20m (€5m). Pfleiderer currently owes PLN 1bn (€256m) in loans but has no intention of increasing its indebtedness. It will shortly sign a new contract with banks that will ensure it financial security. Furthermore, the company's board intends to finalise the construction of a plant in Russia, and the €50m needed for this purpose will probably come from a share issue, although no decision on this matter will be made until midway through the present year.
Pfleiderer likewise wants to sell its boards in the construction branch and to do so it must first obtain the mandatory certificates. In Q1-Q4 2009 the company noted a net loss of PLN 40.5m (€10.4m) on revenues topping PLN 1.23bn (€315m).

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