FINANCIAL RESULTS FOR THE SECOND QUARTER AND SIX MONTHS ENDED JUNE 30, 2006
Trelleborg, July 26, 2006 – PERGO AB (“Pergo” or “the Group”) (Stockholmsbörsen: PERG) today announced its financial results for the second quarter and six months ended June 30, 2006. Pergo’s consolidated accounts have been prepared according to International Financial Reporting Standards (IFRS) as adopted by the European Union. SECOND QUARTER HIGHLIGHTS • Net sales up 16% year on year to SEK 831 million (SEK 717 million) • Gross profit up 19% year on year to SEK 206 million (SEK 173 million) with gross profit margin of 25% (24%) • SEK 45 million positive swing in profitability to operating income of SEK 42 million (SEK -3 million) with operating profit margin of 5.1% (-0.4%) • Net income up to SEK 37 million (SEK -5 million) • Earnings per share of SEK 0.69 (SEK -0.12) FIRST HALF YEAR HIGHLIGHTS • Net sales up 12% year on year to SEK 1,599 million (SEK 1,430 million) • Gross profit up 17% year on year to SEK 410 million (SEK 350 million) with gross profit margin of 26% (25%) • Fourfold increase in profitability to operating income of SEK 84 million (SEK 20 million) with operating profit margin of 5.2% (1.4 %) • Net income up to SEK 71 million (SEK 15 million) • Earnings per share up to SEK 1.34 (SEK 0.26) OUTLOOK • Following strong first half year operating results and despite increased competitive pressures, the Board of Directors has raised the guidance for full year 2006 sales growth to at least 15% (previously 10-15%) and maintained full year 2006 guidance for EBIT margin of 6-7%, with a bias towards the upper end of range, and return on capital employed of 16-18% Tony Sturrus, President and CEO of Pergo AB, commented: “Record second quarter and first half year operating results underline our dual objectives of continued growth and enhanced profitability. We also continue to benefit from the restructuring in 2005 and ongoing operating efficiency improvements. The North American operations continued to perform well across most business lines and the European operations yielded higher margins as a result of the changes that we have made. Our operating margin therefore increased to above 5% for both the quarter and year to date. “We remain focused on investing in the value of the Pergo brand and developing key account relationships across our operating regions. The introduction of new product ranges; new account initiatives; the extension of existing distribution channels; and activities to capitalize on Pergo’s significant worldwide intellectual property portfolio, provide the engine for further growth. We also continue to enhance our operating efficiency levels in order to improve our financial performance and maintain our competitiveness.” OTHER INFORMATION The Group’s consolidated accounts have been prepared in accordance with International Financial Reporting Standards (IFRS), which were adopted with effect from January 1, 2005. This interim report has been prepared according to IAS 34 - ‘Interim Financial Reporting’, and has not been subject to review by the Company’s auditors. Conference call The company will host a conference call today at 14.00 Stockholm local time, 13.00 London local time and 08.00 New York local time. To participate in the conference call, please dial in on the following numbers: Sweden: +46 (0) 8 5876 9445 International: +44 (0) 20 7365 1832 US: +1 718 354 1157 A replay facility will be available for seven days following the call and may be accessed by dialing the following numbers: Sweden: +46 (0) 8 5876 9441 International: +44 (0) 20 7806 1970 US: +1 718 354 1112 The universal PIN code is 4757452# Date of next report Pergo’s financial results for the third quarter and nine months ended September 20, 2006 will be published on October 25, 2006. Trelleborg, July 26, 2006 The Board of Directors Pergo AB (publ) Box 1010 231 25 Trelleborg Sweden Registration number: 556563-2600 For further information, please visit www.pergo.com or contact: Tony Sturrus, CEO Matthew Hooper / Carl Eliasson Investor Relations Tel: +44 (0) 20 7321 5010 ir@pergo.com Frida Rosenholm, General Counsel and Head of Investor Relations Tel: +46 410 36 31 00