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The sustained increase of agreed working hours at Pfleiderer Engineered Wood sites in Germany
is one such important step. This will help offset identified cost disadvantages when facing national
and international competition. As it has proved impossible to reach a company-wide consensus
with IG Metall, we have decided to set up individual agreements with our employees. As a result,
we are guaranteeing jobs up to the end of 2007. However, the only way we can safeguard jobs
in Germany over the long term is by increasing market share and sales.
In Eastern Europe, we intend to use our outstanding competitive position to achieve further growth
coupled with attractive profit margins. The position we achieved by acquiring an early presence
on potentially attractive markets must now be held on to in what have become mature markets.
This we intend to do by offering new products, stronger sales relations and high quality. And
should the right opportunity present itself, we are ready to move into markets outside Europe, too.
Positive Growth in the Company’s Value
Now that we have successfully reduced corporate indebtedness and increased our equity ratio,
our next task is to concentrate our resources and efforts completely on strengthening and
expanding our operative market positions in Germany, Europe and worldwide. For that reason,
once again in fiscal 2004 we have decided to forego paying a dividend. We believe that you,
the shareholders, will agree with this decision. The above average price rise of the Pfleiderer
share over the last twelve months means that you have already participated in the Company’s
value increase. This direction signals a future full of prospects, a future that offers more growth
and greater earnings power. May I therefore thank you for the confidence and trust you have
placed in our Company. This spirit of moving forward together is reflected in the successful partnership
that exists between shareholders, management and employees.
I would also like to express my sincere thanks to all our employees for their dedication and hard
work, the employees’ representatives for their understanding and targeted cooperation, as well
as all our customers and associates for the good and fair dealings we have had and which have
been beneficial to us all.
Pfleiderer AG will make every effort to continue along this road of growth and earnings using
all the means at our disposal – with care, confidence and determination, with entrepreneurial
courage and a sense of responsibility for our values. My colleagues and I, together with all our
employees in Germany and abroad, stand by these words.
Neumarkt, April 5, 2005
Hans H. Overdiek
Spokesman of the Board of Management
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