Pfleiderer Grajewo predicts improved sales in H2

2010-08-31

In the first half of 2010 Pfleiderer Grajewo noted sales revenues of PLN 620.6m (€155.9m) and sustained a net loss of PLN 10.5m (€2.6m). On the other hand, the company's senior management anticipates sales growth of over 10% in the second half of 2010, Parkiet reported.
According to the enterprise's senior management, the chances of Grajewo achieving a net profit will depend on the state of the market and currency exchange rates. Because the economic climate brightened somewhat in the first half of the year, the company wants to resume construction of its production plant in Russia as quickly as possible. The factory will produce MDF and HDF type furniture panels. The manufacturer thus needs funds to finish off the investment. According to estimates, the total sum needed for the project was around PLN 580m (€145.7m). So far Grajewo has spent 67% of this figure and therefore it must still find another roughly PLN 190m (€47.7m). The company's authorities are weighing up a number of options, including a possible share issue, project financing and collaboration with a branch or financial investor. A financial decision on this matter has not yet been made
In the first six months of 2010 the company launched sales of a new multi-purpose construction board. According to assumptions, sales of construction products will account for more than 10% of the group's turnover. Grajewo is also keen to enter the interior furnishing and finishing materials market, although no further details have been disclosed.

Find more news and analyses in internet service Construction Poland Online and pdf newsletter Polish Construction Review.