PDF, 3.2 MB - Pfleiderer AG

PFLEIDERER GROUP AND PFLEIDERER AG
MANAGEMENT REPORT
Market Report
Consumption in Germany remains slack
Furniture and engineered wood industries profit from greater foreign demand
Strong international demand in the rail sector
General Economic Conditions
Following several years of slackness, the global economy picked up considerably during the reporting
period, with growth reaching five percent in 2004 according to “ifo”, the German economic
research institute. However, the German Federal Office of Statistics remains somber when focusing
on Germany alone. In this country, economic growth declined by 0.1 percent in 2003. And
despite the fact that a large number of public holidays fell over the weekends in 2004, GDP increased
in that year just 1.7 percent. When adjusted for this “holiday” effect, real growth came
to only around 0.5 percent.
As in 2003, exports proved the major motor for growth for the German economy in 2004. German
exports increased by around 8.2 percent year-on-year, while imports rose by only around
5.7 percent. This said, the German economy still remains in the doldrums. Private consumption,
accounting for nearly 60 percent of demand and thus the single main contributor, fell by a further
0.3 percent in 2004.
Engineered Wood Sector
Developments within Pfleiderer’s most important customer segment – the German furniture
industry – and in particular the kitchen furniture industry – are a major factor for Pfleiderer
Engineered Wood Germany. Looking at fiscal 2004 overall, trade associations reported growth
for the first time after three consecutive years of declining sales. Figures show that sales rose
by 1.5 percent to around 20 billion euros.
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