* Czech Pegas Q4 net loss on non-cash FX revaluations
* Operating profit below forecast
* Sees lower input costs in Q1 2009, FY EBITDA to drop
* Dividend to rise, shares drop 4.2 pct
(Adds press conference, details)
By Jan Korselt
PRAGUE, March 19 (Reuters) - Czech artificial textiles maker
Pegas Nonwovens <><PGSN.WA> posted worse than expected
fourth-quarter results on Thursday, and said growing competition
in the hygiene sector would hit margins in 2009.
The company made a fourth-quarter net loss of 8.6 million
euros ($11.6 million), worse than the 6.4 million loss expected
by analysts and compared with a 9.65 million euro profit a year
ago.
The result was hit by non-cash currency translations due to
the depreciation of the local crown. Operating profit was 4.9
million euros, down from 5.08 million a year ago, and below the
5.6 million average estimate from analysts polled by Reuters.
Revenues ticked up 2.5 percent to 32 million euros in the
quarter, a tad below analysts' estimates.
Pegas shares dropped 4.2 percent to 226.6 crowns by 1148
GMT, underperforming a 5 percent gain in Prague's index <>.
Pegas, which produces textiles for hygiene products such as
babies' nappies, said it expected 2009 earnings before interest,
tax, depreciation and amortisation (EBITDA) to be no more than
10 percent down from 2008, when it was 39.5 million euros.
Full-year 2008 profit dropped 32.7 percent. The group's
chief executive said this year's dividend would be higher than
last year's 0.85 euro per share payout, but that a final
decision would take place in the third quarter.
"Last year we managed to retain good financial performance
and deliver growth of the main financial indicators of the
company," Pegas director Frantisek Rezac said.
"Even though our company is not entirely shielded from the
unfolding global recession, our firm foothold in the comparably
stable hygiene markets will ensure ongoing performance and solid
financial results in 2009," he said.
Pegas said a sharp decline in polymer prices resulted in
lower input costs in the first quarter of 2009, while revenues
still reflected higher sales prices from the fourth quarter of
2008.
As a result, the first-quarter 2009 EBITDA is likely to be
significantly higher than those in the upcoming quarter, but
2009 would still be tougher as more companies focus on the
hygiene sector, pushing Pegas to cut margins.
"The outlook is not good," said Ceska Sporitelna analyst
Radim Kramule. "The pressure on margins and prices remains."
He added, though, that Pegas' dividend outlook and stability
should support the company's shares, which have dropped 60
percent in the last 12 months and underperformed a 51 percent
drop for the PX index.
(Writing by Jason Hovet and Jana Mlcochova, editing by Will
Waterman; Editing by Rupert Winchester)
($1=.7412 Euro)
