PDF, 3.2 MB - Pfleiderer AG
PDF, 3.2 MB - Pfleiderer AG 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. 20
According to the trade associations, this upturn is almost entirely due to exports. Exports accounted for around a quarter of all sales and increased in the first nine months of 2004 by 5.9 percent. The German furniture industry’s export quota has doubled in just nine years, and now stands at 26.2 percent. But domestic business in the German furniture sector still remains depressed, with growth at just over one percent. Manufacturers of kitchens and lounge seating reported the strongest growth within the industry to date. According to the Central Association of German Wood and Plastic Processors (HDH), sales during the first eleven months of 2004 increased by 4.6 percent compared to the same period of the previous year. On the other hand, manufacturers of office and modular furniture complained of falling sales. Developments in European engineered wood production, which supplies the furniture industry, took on a similar pattern. According to the European Panel Federation, Brussels (EPF), production volumes in Europe during the first half of 2004 increased by 7.4 percent compared to the same period of the previous year. German engineered wood producers also profited from higher foreign demand. Paralleling production volumes, export demand in the second quarter of 2004 rose overproportionately by 18 percent over the previous year. According to the Federal Office of Statistics, exports of raw particleboard from Germany increased by 25 percent up to October 2004 compared to the same reporting period of the previous year. The main buyers are Denmark and Poland. Infrastructure Technology Business growth in the Business Center track systems, part of the Business Segment Infrastructure Technology, depends heavily on the capital expenditure plans of Deutsche Bahn AG, Germany’s rail operator. Industrial growth as a whole also plays a major part in this, as does public spending on infrastructure projects. Maintenance activity and the expansion of passenger and commercial rail traffic are further influential factors for the rail sector, both in Germany and worldwide. The Deutsche Bahn AG is responsible for maintaining and expanding the German rail network infrastructure. Due to the German budget deficit in 2003, Deutsche Bahn announced that it would be postponing planned investments, and it appears that this situation will continue into fiscal 2005. However, this development should only have a minor effect on results for Pfleiderer track systems as weak domestic demand has been offset by export success. Nevertheless, orders in Germany are expected to be considerably lower in fiscal 2005. 21 MANAGEMENT REPORT MARKET REPORT
- Page 1 and 2: Annual Report 2004 Core Businesses
- Page 3 and 4: Group Figures Jan. 1 - Jan. 1 - Cha
- Page 5 and 6: Pfleiderer AG is focusing on its tw
- Page 7 and 8: 3 35 Pfleiderer Engineered Wood fur
- Page 9 and 10: In closing down the Rheda-Wiedenbr
- Page 11 and 12: Dr Jürgen Koch Member of the Board
- Page 13 and 14: Committees Formed by the Supervisor
- Page 15 and 16: CORPORATE GOVERNANCE 1. Introductio
- Page 17 and 18: 4. Supervisory Board The Board of M
- Page 19 and 20: Declaration of Compliance 2004 Unde
- Page 21: Stock Option Program 2004 (Continua
- Page 26 and 27: Company Report Corporate portfolio
- Page 28 and 29: In fiscal 2004, the Pfleiderer Grou
- Page 30 and 31: Net indebtedness of the Pfleiderer
- Page 33 and 34: GERMANY GDP in Germany increased by
- Page 35 and 36: y expanding foreign and export rati
- Page 37 and 38: Production Pfleiderer Engineered Wo
- Page 39 and 40: Aside from its leading market prese
- Page 41 and 42: Due to its very low construction he
- Page 43: Procurement In order to take advant
- Page 46 and 47: Research & Development New “Multi
- Page 48 and 49: In September 2004, Pfleiderer appro
- Page 50 and 51: Personnel As of December 31, 2004,
- Page 52 and 53: Pfleiderer Corporate Guidelines for
- Page 54 and 55: Economic and Political Risks and In
- Page 56 and 57: No liquidity risk exists at present
- Page 58 and 59: wodego® is the latest brand in Pfl
- Page 60 and 61: Key Figures 2004 2003 No. of shares
- Page 62 and 63: Investor Relations Activities Indiv
- Page 64 and 65: While the prices paid for paraffin
- Page 67 and 68: TURKEY The Turkish economy reported
- Page 69 and 70: Liabilities and Shareholders’ Equ
- Page 71 and 72: Pfleiderer Consolidated Statement o
- Page 73 and 74: Comprehensive income 69 Other compr
According to the trade associations, this upturn is almost entirely due to exports. Exports<br />
accounted for around a quarter of all sales and increased in the first nine months of 2004 by<br />
5.9 percent. The German furniture industry’s export quota has doubled in just nine years, and<br />
now stands at 26.2 percent.<br />
But domestic business in the German furniture sector still remains depressed, with growth at just<br />
over one percent. Manufacturers of kitchens and lounge seating reported the strongest growth<br />
within the industry to date. According to the Central Association of German Wood and Plastic<br />
Processors (HDH), sales during the first eleven months of 2004 increased by 4.6 percent compared<br />
to the same period of the previous year. On the other hand, manufacturers of office and<br />
modular furniture complained of falling sales.<br />
Developments in European engineered wood production, which supplies the furniture industry,<br />
took on a similar pattern. According to the European Panel Federation, Brussels (EPF), production<br />
volumes in Europe during the first half of 2004 increased by 7.4 percent compared to the same<br />
period of the previous year. German engineered wood producers also profited from higher foreign<br />
demand. Paralleling production volumes, export demand in the second quarter of 2004 rose overproportionately<br />
by 18 percent over the previous year.<br />
According to the Federal Office of Statistics, exports of raw particleboard from Germany increased<br />
by 25 percent up to October 2004 compared to the same reporting period of the previous year.<br />
The main buyers are Denmark and Poland.<br />
Infrastructure Technology<br />
Business growth in the Business Center track systems, part of the Business Segment Infrastructure<br />
Technology, depends heavily on the capital expenditure plans of Deutsche Bahn <strong>AG</strong>, Germany’s<br />
rail operator. Industrial growth as a whole also plays a major part in this, as does public spending<br />
on infrastructure projects. Maintenance activity and the expansion of passenger and commercial<br />
rail traffic are further influential factors for the rail sector, both in Germany and worldwide.<br />
The Deutsche Bahn <strong>AG</strong> is responsible for maintaining and expanding the German rail network<br />
infrastructure. Due to the German budget deficit in 2003, Deutsche Bahn announced that it would<br />
be postponing planned investments, and it appears that this situation will continue into fiscal<br />
2005. However, this development should only have a minor effect on results for <strong>Pfleiderer</strong> track<br />
systems as weak domestic demand has been offset by export success. Nevertheless, orders in<br />
Germany are expected to be considerably lower in fiscal 2005.<br />
21<br />
MAN<strong>AG</strong>EMENT REPORT MARKET REPORT
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