Economic news released by SITA on Monday, November 20
Central Bank Shows SKK 2 Bln. Loss Ten Months into 2006
The National Bank of Slovakia (NBS) posted an SKK 2 billion loss at the end of October 2006. The central bank informed that this figure does not include differences from the valuation of financial assets or assets and liabilities in foreign currency. In line with new accounting laws effective from January 1, 2006, differences from valuation affect equity of the NBS. Losses from the valuation of financial assets and assets and liabilities in foreign currencies will affect the NBS' economic result as of December 31, 2006. As at the end of October, losses from valuation reduced NBS' equity by SKK 23 billion.
SAD Humenne Reports 6.3 % Increase in 2005 Sales
In 2005, sales of public bus transport firm SAD Humenne, a.s. went up 6.3 percent y/y to more than SKK 302 million. Sales of own products and services amounted to almost 75 percent of this sum when they increased 1.4 percent from last year to SKK 241.2 million. In the monitored period the firm generated added value of SKK 46.1 million, up 35 percent y/y. The company closed the year 2005 with a net profit of SKK 160,000, up 50 percent y/y.
Kafileria Senec Carcass-Disposal Plant Posts SKK 23 Mln. Loss in 2005
Carcass-disposal plant Kafileria in Senec reported sales of its products and services of SKK 127.4 million last year, which is a decrease of 27.7 percent from 2004. The company also posted a 35.6 percent-percent drop in output to SKK 125.4 million in 2005. On production costs going down 12.7 percent y/y to SKK 66.3 million, the company generated added value of SKK 39.2 million. This is a decrease of SKK 56.8 million compared with 2004. High output drop mirrored also in the financial result. While in 2004 the company made a taxed profit of SKK 22.1 million, it swung into a loss of SKK 23.2 million last year, according to data disclosed by the company.
Court Rejects Custody Request for Ladislav R. and Ernest V.
Business tycoon Ladislav R. and prominent Bratislava lawyer Ernest V. who face charges of extortion in two instances will not remain in custody during police investigation in the case extortion of a business partner connected with purchase of land at Zahorie. The Bratislava I district court made the decision on Monday, informed spokesman for the Police Corps Presidium Martin Korch. The prosecutor however appealed against the decision and the Bratislava Regional Court has until next Monday to decide on it. In the case also Ladislav R.'s son Martin is accused. However the court did not decide on him as he has been taken to pretrial custody after accused in the first case of extortion involving an accountant in one of his father's firms.
Financed Claims Take VUB Factoring to Number Two on the Slovak Market
VUB Factoring, a.s. financed claims for almost SKK 3.4 billion in nine months of this year. VUB bank spokeswoman Alena Walterova said that this volume secured the company the second position on the Slovak market, with a 10.5 percent market share. Local factoring represented the biggest portion of the turnover at 68 percent.
DIY Retail Chain BauMAX SR Reached 2005 Sales of SKK 2.997 Bln.
Specialized DIY retail chain BauMAX SR, spol. s r.o. closed last year with about the same sales as in 2004. Its sales of goods amounted to SKK 2.997 billion in 2005, up 0.1 percent y/y. Costs of sales rose 2 percent to SKK 2.245 billion. The trade margin dropped by 5.3 percent y/y to SKK 751.8 million.
Decision on Tesco-Carrefour Merger Postponed Until January 17
Tesco and Carrefour in Slovakia were not told about a regulatory decision about their merger on the Slovak market by the deadline that expired on November 20. The Slovak Republic's Antitrust Office (PMU) made use of the last possibility to extend the deadline to issue the verdict until January 17, 2007, PMU spokesperson Alexandra Bernathova told SITA. "This is the ultimate deadline for the office to decide on the merger," she said. The PMU used the possibility to extend the deadline to thoroughly examine how the definitive draft terms and duties, submitted by Tesco, will impact the market.
Bearings Producer INA Kysuce Reports SKK 5.92 Bln. Sales in 2005
Bearings producer INA Kysuce, a.s. Kysucke Nove Mesto reported sales of products and services of almost SKK 5.923 billion last year. This is an increase of 38.9 percent compared with 2004. The company's output reached almost SKK 6.019 billion: up 34.5 percent y/y. Production costs in the monitored period grew 30.5 percent to SKK 3.873 billion. The company generated added value of almost SKK 2.146 billion in 2005, which is SKK 638.7 million more than in the previous year, read the data disclosed by the company.
Trade License Holders Employ Half of Construction Sector's Work Force
The Statistics Office informed that 6,237 businesses and 64,392 persons with a trade license worked in the construction sector as of the end of the first six months of this year. In comparison with the end of last year, this means an increase by twelve businesses and 1,956 individuals holding a trade license. "Small businesses with up to 19 employees make up as much as 86.8 percent out of the total number of construction companies, which means 5,416 businesses," reads the material of the Construction Ministry. Businesses with 20 to 499 persons made up 10.1 percent and the remaining 3.1 percent were businesses with 500 and more employees including businesses with unidentified number of employees.
Slovakia's Banking Sector Employed 20,845 People in September
The banking sector in Slovakia employed 20,845 people in September of this year. Compared to September 2005 this means a drop by less than 1 percent. The commercial banking sector is behind the drop when banks and arms of foreign banks in Slovakia reported 19,672 employees. This was by 209 people less than one year ago. On the other hand, the work force of the National Bank of Slovakia (NBS) grew by four persons to 1,173, the central bank has announced.
MONEY MARKET: Week Opens with Liquidity Surplus
The interbank market opened this week's trading in a calm atmosphere. The sector remains in a liquidity surplus, which reflected in prices of shortest deposit. Tatra Banka dealer Jozef Bozek said that commercial banks deposited SKK 25.211 billion in their reserve accounts in the National Bank of Slovakia (NBS) on Monday, meeting the minimum requirement for November on a cumulative basis at 119.56 percent. An additional SKK 1.62 billion ended in the NBS overnights.
Opposition Accuses Government of Harming Health Sector's Functioning
Former Finance Minister and vice-chairman of the opposition Slovak Democratic and Christian Union-Democratic Party (SDKU-DS) Ivan Miklos finds the government's intention to change two state-run health insurers from joint stock companies to public institutions and enable them to draw the state financial assistance to be a very bad solution. "It will lead to mismanagement in their funds and growth of debts in the health sector," Mr. Miklos told a news conference on Tuesday.
STOCK MARKET: SAX Index Loses 0.59 Pct. on Monday
The value of Slovakia's official SAX share index again moved away from the 400-point level at the beginning of the new week. Falling share prices of the Slovak crude-oil refiner Slovnaft pulled down the SAX index 0.59 percent or 2.37 points to 396.22 points. Turnover on the Bratislava Stock Exchange (BCPB) rose from SKK 56.8 million on Thursday to SKK 1.662 billion on Monday, with SKK 397,300 in share trading.
FOREX MARKET: Crown Initially Weakens, Recovers Later
The Slovak currency initially weakened against the euro on Monday morning. However, the crown later reversed that trend and was able to strengthen. CSOB dealer Richard Brza further said that the crown opened at 35.660/35.680 SKK/EUR. Before noon, market players pushed up the crown's exchange rate above 35.700 SKK/EUR, and other regional currencies also registered losses. The situation on the market changed later, and the Slovak currency strengthened to 35.590/35.610 SKK/EUR, where the exchange rate stood before the close of trading.
Shareholders in Transpetrol Reshuffle Board Members
Shareholders of Slovak crude oil pipeline operator Transpetrol replaced some members of the Transpetrol's board of directors as well as the supervisory board at a special session on Monday. The spokesperson of the Slovak Economy Ministry Branislav Zvara informed SITA about the changes. "We replaced two members of the board of directors and five members in the supervisory board, all representatives of the ministry," said Mr. Zvara, who was unable to specify their names for now. "I do not have this information at this point, but they will be published on the Internet web site soon," he added.
Study Shows Mammographs in Slovakia not Used Effectively
The Healthcare Supervision Office (UDZS) in Slovakia has uncovered in its analysis that mammographs, which are the basic diagnostic tool for breast cancer, are not used effectively. "Inadequate organization of work but also low education of patients or their knowledge of entitlements for preventive examinations might be the reason why the number of mammography examinations in some regions is low," said UDZS spokesperson Radoslava Miklasova.
Average Farm Gate Potato Price Increased in Early October
The average farm gate price of potatoes in Slovakia increased in early October of 2006 to SKK 8.86 per kilogram. During next few weeks the growth dynamics slowed down and the potato price even decreased at the end of the month. In spite of this short-term decrease the average potato price broke the so-far record when it grew at an index of 1.233 to SKK 8.87 per kilogram. The average farm gate price of potatoes increased again during the first November week when compared with the last October week. It went up by 5.7 percent to SKK 9.26 per kilogram. The temporarily increased supply of potatoes from small farmers, who do not have quality storage capacities, slowed down the price increase in October. These farmers are attempting to sell their produce as quickly as possible. Continuing promotion sales of retail chain keep in check the potato price growth as well.