PFB Corporation

PFB Corporation

November 20, 2006 14:25 ET

PFB Corporation Announces Significant Forward Foreign Exchange Commitments

CALGARY, ALBERTA--(CCNMatthews - Nov. 20, 2006) - PFB Corporation (TSX:PFB) announces significant forward foreign exchange commitments.

PFB Corporation announces that it has entered into several agreements to purchase United States dollars over a fourteen month time frame commencing in November 2006 and ending in December 2007. Over this time period, the Corporation will purchase USD $19,750,000 at a blended average exchange rate of CAD $1.00 = USD $0.889.

Steve Hardy, Chief Financial Officer stated "Over our fiscal cycle, PFB is a net buyer of United States dollars, despite significant sales revenues generated by our United States-based operations, as PFB's major raw materials purchases are denominated in U.S. dollars. Accordingly, our business is affected by the volatility of foreign exchange fluctuations. As an example, foreign exchange fluctuations reduced our reported net sales revenues to customers in the United States in the first nine months of 2006 by $1,200,000 Canadian dollars, our reporting currency, due to a much stronger Canadian dollar in the current year as compared to the comparative period in 2005. By committing to the aforementioned contracts to purchase United States dollars at fixed exchange rates, we have reduced a significant portion of our foreign exchange exposures through fiscal 2007."

Forward Looking Statements

Certain statements in this Press Release contain forward-looking statements about the objectives of PFB Corporation ("PFB" or the "Corporation") and management's expectations, beliefs, intentions or strategies for the future. Future events are subject to certain risks, uncertainties and assumptions that may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

Such risks, uncertainties and assumptions include, but are not limited to: general economic conditions; actions by government authorities; actions by regulatory authorities; availability of raw materials; changes in raw materials prices; foreign exchange rates; interest rates; competitor activity; industry pricing pressures; seasonality of the construction industry; and weather.

About PFB

PFB Corporation is a vertically integrated manufacturer of insulating building products marketed across North America under three brands. Plasti-Fab® EPS Product Solutions are products, manufactured using expanded polystyrene (EPS) as base raw materials, that are delivered to customers in five segmented markets. Insulspan® SIP Systems are structural insulating panel systems that customers assemble on-site to provide a strong and completely insulated building envelope. Riverbend® Timber Framing products are custom, enclosed timber framed structures delivered to customer's job sites as ready-to-assemble building packages.

PFB Corporation's shares are listed for trading on the Toronto Stock Exchange, under the symbol PFB.

Contact Information

  • PFB Corporation
    Stephen P. Hardy
    Vice President & CFO
    (403) 569-4303
    (403) 569-4075 (FAX)
    PFB Corporation
    #270, 3015 - 5th Avenue NE
    Calgary, Alberta T2A 6T8