Summary of economic news released on Wednesday, November 22
VUSAPL Nitra Reports Q1-Q3 Sales of SKK 129.3 Mln.
Manufacturer of plastics products VUSAPL, a.s., Nitra reported sales of its products and services of SKK 129.3 million in nine months of this year. This is a decrease of 12.8 percent when compared with the same period of 2005. Production costs in the monitored period were SKK 82.6 million: down 14.2 percent y /y. The company generated added value of SKK 48.4 million from January to September 2006, which is SKK 8.3 million less than in a year ago. "
Issuers Continue Withdrawing from Bratislava Stock Exchange
Companies continue withdrawing their shares from public trading on the Bratislava Stock Exchange (BCPB). Shareholders of Zvolen-based wood-processing company Bucina, a.s., as well as spa company Slovenske Liecebne Kupele (SLK) Rajecke Teplice, a.s., resided in Bratislava approved a proposal to withdraw their shares from trading on the BCPB. Additionally, Polnonakup Hornonitran, a.s., Prievidza announced its intention to terminate trading on the BCPB floor.
ConocoPhillips Slovakia Closed Last Year in Negative Territory
ConocoPhillips Slovakia, s.r.o. Bratislava, which operates a network of petrol stations in Slovakia under the brand name Jet, closed last year in negative territory despite a 30-percent growth in revenues from goods sold. Along with an SKK 16.5 million loss, the company also reported a 27-percent y/y drop in added value to SKK 74.2 million. Its gross margin reached SKK 128.8 million. In 2004 ConocoPhillips showed a taxed profit of almost SKK 12.1 million, according to data published in the Commercial Bulletin.
Calmit and CLL Will Fulfill their Business Plan for 2006
Calmit, s.r.o. Bratislava and its subsidiary Cementaren Lietavska Lucka (CLL), a.s. will fulfill their business plans for this year. " We evaluate positively our interim results," said Calmit finance director Jan Hoffman, however, he did not reveal the Q1-Q3 results of the company in line with the policy of the concern. However, he informed in August of this year that CLL should produce 190,000 tons of processed limestone, while sales should reach SKK 150 million. Calmit should produce 350,000 tons of processed limestone on sales of around SKK 600 million.
Quality of Roads in Bratislava County is Poor, Repair is Urgent
Bratislava county placed third on a chart of eight Slovak counties evaluated according to damage rate of second category roads. This is 4.8 percent out of the total length of these roads. There are 8 percent of roads of the third category in Bratislava county with the highest damage rate. Bratislava county thus placed second after the Presov county. "According to the current state it is necessary to carry out repair works or reconstruction on 21.6 percent of roads of the second category and 35.2 percent of roads of the third category," reads the draft operational program Bratislava county, which regulates EU funds drawing in 2007 to 2013. According to data from the internet website of the Bratislava county, there are over 511 kilometers of regional roads in Bratislava county, of this nearly 179 kilometers of the second category and over 332.7 kilometers of the third category.
Pulp & Paper Companies Boost Q1-Q3 Sales to SKK 20.624 Bln.
Sales of eleven companies clustered in the Slovak Pulp and Paper Industry Association (ZCPP) in the first nine months of this year climbed 11 percent y/y to SKK 20.624 billion. ZCPP secretary general Juraj Dlhopolcek told SITA that financial results of the firms improved thanks to the current boom on the market. Export growth was another positive news in this period, with growth of 8.9 percent y/y to SKK 19.142 billion in late September 2006. Export of ZCPP companies thus made up 83 percent of their total sales.
AB Cosmetics Takes over Obligations and Claims of AB Kozmetika Group
As of November 1, trade company AB Cosmetics, s.r.o. Samorin, which was established in August of this year, took over obligations and claims resulting from contracts of production company AB Kozmetika Group, s.r.o. Bratislava. "The newly established company was set up to make use of the strong potential of the traditional brand and growing demand not only on the local market. Apart from innovating of the current packing, the company plans to enlarge also the product range," said company's marketing director Jan Piza.
SB Inmart Reports 2005 Sales of SKK 432.4 Mln.
Bardejov based company SB Inmart, a.s. which produces handling equipment and hydraulic components, posted sales of SKK 432.4 million last year, which is up 58.2 percent y/y. Sales of its products and services accounted for SKK 288.3 million, which translates into an increase of 16.9 percent y/y. Sales of goods were SKK 93.8 million and sales of noncurrent assets and material reached over SKK 50 million.
Zdroj Verex Reports 2005 Revenues of Almost SKK 1.3 Bln.
The Liptovsky Mikulas-based trade company Zdroj Verex, a.s. reported 2005 revenues from goods sold of SKK 1.291 billion, while in 2004, revenues from goods sold were SKK 1.247 billion. Costs of sales amounted to SKK 1.168 billion last year. The firm's gross margin was SKK 123 million, which was an 11.8-percent drop y/y. The firm closed 2005 with a taxed profit of SKK 28.1 million, down 17.9 percent compared with 2004, according to data released by the company in the Commercial Bulletin on www.epi.sk.
Slovak Construction Companies' 3Q Sales at SKK 155.7 Bln.
For three quarters of this year, construction companies in Slovakia reported sales of their products and services of SKK 155.7 billion, which is a 16.9-percent y/y increase. The nine-month construction output was SKK 102.2 billion, which is 15.9 percent more compared with three quarters of 2005. According to the Construction Ministry's data, local construction output contributed with SKK 99 billion to the total results, and grew almost 18 percent y/y. New construction, modernization and reconstruction made up 82.2 percent of it, up 22.2 percent to SKK 81.3 billion. The volume of construction output in maintenance and repair works reached SKK 17.1 billion in nine months of 2006, up 1.4 percent. Construction output abroad by Slovak firms declined 22.9 percent y/y to SKK 3.2 billion.
SPP is Buying Turbo-Compressors for Natural Gas Transit
Gas utility Slovensky Plynarensky Priemysel, a.s., (SPP) plans to buy new turbo-compressors with an output of 30 megawatts (MW) serving to transport natural gas. These should replace the original turbo-compressors with an output of 6 MW at the compressor station of the transit pipeline in Velke Kapusany. "The installation of the new units will increase effectiveness and reliability of international transit of natural gas," SPP spokesperson Dana Krsakova told SITA.
Prime Minister Fico Disagrees with Some Nominations to State Firms
Slovak Prime Minister Robert Fico strongly opposes certain personnel decisions concerning the distribution of posts on boards of trade companies with state capital participation, prime minister's spokeswoman Silvia Glendova stated. Mr. Fico learned about the nominations in firms with state participation no sooner than after arrival from his official visit in Portugal on Tuesday. "Mr. Fico considers the nominations of certain people a violation of principles, which the new ruling coalition should respect," Ms. Glendova said. The Coalition Council meeting will deal with the issue of those personnel decisions on Wednesday, while the prime minister will insist on changing them.
Taxed Profit of Geco Tabak Went up by 96.2 Pct. in 2005
Geco Tabak, s.r.o. Bratislava, a company trading in tobacco products, reported sales of SKK 313.1 million last year. Revenues from goods sold reached SKK 292.7 million, which is up 37 percent y/y. Cost of sales grew by 39.1 percent to SKK 259.9 million. The trade margin rose 22.4 percent to SKK 32.8 million. Taxed profit of the company nearly doubled to SKK 10.2 million. Total assets of the company stood at SKK 73.4 million at the end of last year. Shareholders' equity covered company's assets at 67.2 percent.
STOCK MARKET: No SAX Base Titles Traded on Wednesday
The Bratislava Stock Exchange (BCPB) registered a very quiet trading day midweek. No shares out of the SAX base were traded on the stock exchange floor. Thus, the value of Slovakia's official share index SAX remained unchanged at 396.59 points. Turnover on the Bratislava Stock Exchange (BCPB) fell from SKK 49.933 billion on Tuesday to SKK 332.365 million on Wednesday, of which a mere SKK 1.554 million fell to share trading. On the whole, only shares of 1. Garantovana the firm Majetkovy Holding and the company VUKI changed owner on Wednesday. Within directly negotiated transactions, 240 shares of the firm Pro Populo changed hands at SKK 300 per item.
Sony Will Built an LCD TV Sets Factory in Slovakia
Representatives of the Japanese concern Sony and the town of Nitra signed on Wednesday a land purchase contract. Sony will build in the industrial park Nitra -- Sever a plant for production of LCD TV sets. Nitra mayor Ferdinand Vitek said at a press conference after signing of the contract that Sony has bought a 40-hectare plot for "a price, which is lower than prices for which plots in Nitra are usually bought." The Japanese investor wants to start building the new plant in December. The town has already issued a land planning decision while a construction permit should be granted in the next couple of days.
Slovakia to Draw EUR 864 Mln. from EU Social Fund in 2007 to 2013
Slovakia should receive EUR 864 million from the European Social Fund (ESF) for realization of the operational program Employment and Social Inclusion in the next programming period from 2007 to 2013. EUR 101.5 million to EUR 174.7 million should be drawn every year for this project. With the help of these funds, employment growth should be supported and solution to long-term unemployment in Slovakia should be found. Apart from this, the funds should be used for better harmonization of family and work life, development of social services, as well as for support of integration of disadvantaged groups on the labor market with special focus on Roma communities, reads a draft operational program, which the Labor Ministry submitted for interdepartmental review.
MONEY MARKET: Liquidity Surplus Persists after Repo Tender Settlement
The interbank market stayed in a liquidity surplus after the settlement of the National Bank of Slovakia's (NBS) two-week repo tenders on Wednesday. Ludova Banka dealer Janka Kolarikova stated that a total of SKK 172.357 billion from the NBS repo tender on Tuesday left, and a maturing SKK 173.135 billion returned to the market. Commercial banks deposited SKK 20.403 billion in their reserve accounts in the National Bank of Slovakia (NBS) on Wednesday, meeting the minimum requirement for November on a cumulative basis at 116.65 percent. An additional SKK 6.38 billion ended in overnight sterilization in the central bank.
Rehak Temporarily Quits as Head of Orange Slovensko Board of Directors
Ladislav Rehak decided to temporarily quit as chairman of the board of directors of mobile operator Orange Slovakia, a.s. He did so due to the current situation when he faces charges of extortion. Mr. Rehak already informed the company management about his decision. Media representative of Mr. Rehak Sona Potheova informed that Mr. Rehak will neither attend sessions of the board of directors nor participate in board's decision making processes until he decides otherwise.
Minister Janusek is Skeptical about Drawing EU Funds in 2007
Construction Minister Marian Janusek said during his visit to the House of Slovak Regions in Brussels on Wednesday that the year 2007 will be weak for Slovakia in drawing EU funds. According to the minister, the National Strategic Reference Framework for the next programming period should get on the agenda of the cabinet's session by the end of November 2006 along with regional operational program, which is now in a shortened interdepartmental review. Afterwards, the document will be submitted to Brussels.
Orange Slovensko Management Appreciates Rehak's Decision to Quit
The management of mobile operator Orange Slovensko, a.s., perceives the decision of Ladislav Rehak to temporarily quit as the chairman of the board of directors of the company as a manifestation of responsibility. "In addition to professional attitudes of Ladislav Rehak, I acknowledge that during a difficult personal ordeal he is capable of putting interests of the company above those of his owns" said Orange Slovensko director general Pavol Lancaric.
FOREX MARKET: Crown Loses Over 10 Hallers against Euro
Trading in the Slovak currency on the foreign exchange (FOREX) market was calm on Wednesday's morning. However, the crown started to weaken during the day. Postova Banka dealer Marian Pallay stated that the Slovak crown opened above 35.500 SKK/EUR. First there were efforts for press the crown below that level. The Slovak currency started to lose against the euro after the release of the information that growth of Slovakia's new industrial orders slowed. "Market players started profit taking, and the crown reached the weakest level of the day of 35.650/35.700 SKK/EUR," Mr. Pallay commented. Before the close of trading, the exchange rate was a few hallers below that level. The U.S. dollar was traded against the euro at 1.2930 USD/EUR (middle). The Slovak crown was quoted at 27.560/27.570 SKK/USD. The cross rate of the Slovak and Czech crowns was 1.2750/1.2780 SKK/CZK.
Bratislava Airport Should be Classified among Strategic Companies
The company Letisko M.R. Stefanika -- Airport Bratislava, a.s. (BTS) should be classified as a strategic business. This proposal comes from the material on handling the National Property Fund's (FNM) stake on the airport's operations. The Transport Ministry forwarded this material for interdepartmental review. The ministry suggests drawing up a draft amendment to the large-scale privatization law. According to the draft amendment, Bratislava airport would be classified as a strategic business, in which permanent state property-participation of at least 51 percent must be sustained. Afterwards, the Transport Ministry should be responsible for managing the airport and executing shareholder rights.