STOCKHOLM, Sweden, July 22, 2005 (PRIMEZONE) -- Pergo:
(Figures in brackets (xx) correspond to the figures for the same period last year)
-- Net sales for the period totaled SEK 1,430 million (1,417).
-- The operating profit for Q2 was SEK 20 million (-222).
Excluding items affecting comparability, last year's result
amounted to SEK 31 million.
-- The profit after tax for the period was SEK 15 million (-222).
-- The earnings per share (EPS) for the period were SEK 0.27 Kr
(-4.17).
-- Cash flow from ongoing operations during the period was SEK -90
million (12). Cash flow for Q2 amounted to SEK -23 million (103).
-- Tony Sturrus assumed the position of President and CEO in April.
-- At the Annual General Meeting held in April, a resolution was
adopted to implement a stock option scheme for senior management.
Events after the end of the period
-- An action plan to improve profitability in the European operation
will be initiated. Management has identified annualized savings
of approximately SEK 100 million to be realized in 2006 within
corporate overhead, improvement of productivity and the creation
of global synergies in purchasing, Information Technology product
development and design. Pergo does not anticipate any one time
costs for the improvement plan. Costs associated with the plan
will be absorbed in the current operating outlook.
-- The Board has decided to hold an extraordinary general meeting on
August 17 to discuss the earlier agreed upon stock option scheme.
CEO Tony Sturrus comments
"The modest loss in the second quarter is mainly attributable to one-time, non-operating costs. The operating business units are profitable and fundamentally sound.
"We remain confident that our previous statement to significantly improve our result during the latter part of 2005 will be achieved. Also our operating cash flow will substantially strengthen throughout the rest of the year as our capital investment program is nearly complete.
"With the action plan in Europe, together with increased focus on global synergies and growth in North America, we believe our year-over-year result will show significant improvements going forward."
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