Czech Pegas Nonwovens Q1 net sharply up on FX gains

Tag : nonwoven item

'Results at the operating level were in line with expectations, andnet profit was slightly higher because of the FX gains,' said DanKarpisek, an analyst with
Unicredit in Prague.
'The main concern (for the full year) will be the crown currency,'he added, saying further strengthening could impact the group'soperating level.
Pegas confirmed guidance for the full year 2008, expecting revenuegrowth of 21 to 25 percent and EBITDA growth of 5 to 9 percent, andsaid it expected to pay out a 0.85 euro per share dividend on 2007profit, up from 0.76 euro the year before.
'In the first quarter of 2008, we focused on the best utilisationof our new capacity from the 8th production line, productionefficiencies, cost control and
new R&D projects,' Pegas' CEO Milos Bogdan said in a statement.
'We strongly believe this will allow us to stay at the leading edgein the current highly competitive European spunmelt nonwoventextiles market'
Pegas, one of the leading producers of non-woven fabrics forhygienic and healthcare products in Europe, also said it was inpreparations for a ninth line
and its launch will be determined by market conditions.
On a conference call, company officials said the line's locationwill probably be in the Czech Republic, where all its other linesare located, although foreign locations, including Russia, arebeing considered.
The group has launched new production lines every two to threeyears in the past.
At noon, shares in Pegas were 1.5 percent higher, in line withPrague's main PX index. jason.hovet@thomsonreuters.com +420 222 191109 jrh/hjp/jrh/rfw/jrh/rfw/jrh/jfr