Summary of economic news released on Thursday, June 1
Reding a.s. Construction Firm plans SKK 1.041 Bln. Revenues in 2006
Bratislava-based construction company Reding, a.s. plans total revenues of SKK 1.041 billion this year on total costs of SKK 1.02 billion. Its gross profit should achieve SKK 20.4 million and a taxed profit should be SKK 17.2 million. Revenues from own products and services sold should stand at SKK 1.034 billion. The company plans production consumption of 883.3 million while added value is projected at SKK 132.9 million.
Strojtech Doubles 2005 Revenues to SKK 229.3 Mln.
Joint stock company Strojtech, s.r.o. Nove Mesto nad Vahom reported revenues from the sale of its own goods and services at SKK 229.3 million last year, up almost 49.8 percent y/y. The company deals with production, installation and servicing of ventilation and drying equipment. Strojtech output last year reached SKK 222.7 million on production consumption of almost SKK 166.9 million. The company generated added value of SKK 56.4 million; i.e. this indicator grew by SKK 14.5 million y/y.
Slovak State Budget Posts an SKK 11.7 Bln. Deficit at the End of May
Slovakia's state budget ended the first five months of this year with a deficit of SKK 11.7 billion. This is a worsening by SKK 7.842 billion compared with the same period of the previous year. The Finance Ministry further informed that state budget revenues, projected for the whole year at SKK 272.717 billion, reached SKK 112.115 billion in five months of this year: up SKK 6.656 billion or 6.3 percent y/y. Thus they met the annual plan at 41.1 percent. Total expenditures, budgeted this year at SKK 330.185 billion, stood at SKK 123.815 billion in late May: up SKK 14.498 billion or 13.3 percent y/y. They made up 37.5 percent of the annual plan.
Willing a.s. Zvolen Posts 24.8 Percent Sales Increase in 2005
Willing, a.s. Zvolen, which deals in military materials and engineering products, reached total sales of SKK 252.5 million last year. Compared with 2004 this means a 24.8 percent increase. Sales of goods made up the biggest portion of the total sales, SKK 217.4 million. They rose 33 percent over the year. Costs of sales amounted to SKK 175.6 million, an annual increase of 31.8 percent. Thus Willing company reported a 41.8 percent increase in the gross margin to SKK 41.8 million. On the other hand, sales of its own products and services shrank by 9.1 percent to SKK 35.1 million. The company closed the year 2005 with a taxed profit of SKK 31.6 million, a significant improvement from SKK 1.5 million generated in 2004.
Slovak Pensions to Rise 5.95 percent as of July 1
All pensions in Slovakia will increase by 5.95 percent as of July 1, 2006. The valorization will apply on old-age pensions, early retirement pensions, widow's, widowers' and orphan's pensions, as well as pensions of the physically challenged people and social pensions. Social security provider Socialna Poistovna's board of directors' chairman Frantisek Halmes said at a press conference that about 1.47 million pensions will increase in total. "Old-age pensions will increase by SKK 461 on average, early retirement pensions will get up by SKK 509 and disability pensions by SKK 347. Pensions of widows will rise by SKK 295, pensions of widowers by SKK 195 and pensions of orphans by SKK 135," said Mr. Halmes.
Danish Unomedical Opens a Production Plant in Michalovce
Unomedical , s.r.o., a subsidiary of a Danish company of the same name has officially opened on Thursday its new operation in the eastern Slovak town of Michalovce. The plant in Michalovce will product disposable sterile medical materials and instruments. The company plans to invest over SKK 350 million in Slovakia. After it starts working at full capacity the plant should give work up to 550 people and create conditions for at least 270 indirectly created jobs.
First Peugeot 207 Cars Left the PSA Plant in Trnava
On Wednesday afternoon, the first 19 Peugeot 207s left the car assembly plant of PSA Peugeot Citroen in Trnava, western Slovakia. The cars went to Bratislava for a promotion show. These cars meet quality criteria to be sold on the market.
SLSP Provided SKK 8.4 Bln. Personal Loans in Four Months of 2006
Slovenska Sporitelna, a.s. (SLSP) provided SKK 8.4 billion personal loans in the first four months of this year, up almost 35 percent y/y. The volume of housing loans increased almost two-fold y/y. These housing loans replace traditional mortgages, since the bank now only provides traditional mortgages rarely. At the same time SLSP simplified the process of providing loans and thus enabled the clients to obtain a loan without paperwork concerning client's income. Clients who have their income regularly transferred to an account in SLSP for at least the past four months do not have to submit an income statement to the bank from June to apply for a loan. So far only clients who have received their income in SLSP accounts for 13 month at least had such an opportunity. In case of clients who receive their income in SLSP accounts, the bank can estimate whether they are able to repay the loan, for which they apply, explained SLSP financing department chief martin Kana.
Ludova Banka Expects 12.5-Pct. Rise in Profit This Year
Ludova Banka, a.s. Bratislava expects this year's profit to increase by 12.5 percent compared to last year. Bank's director Jozef Kollar stated at the press conference on Thursday that the bank posted an SKK 224.5 million taxed profit last year according to audited results calculated in line with Slovak accounting standards. The bank intends to increase its market share mainly in the sector of small and middle-sized businesses, which are the bank's target group of clients, explained Mr. Kollar. Furthermore, the bank also expects expansion in retail banking. Ludova Banka hopes to achieve 50-percent rise y/y in mortgages, stated Mr. Kollar.
SEPS to Pay SKK 370.2 Mln. Dividend to Government Shareholder
The national electricity transmission network operator, Slovenska Elektrizacna Prenosova Sustava (SEPS) will pay SKK 370.2 million to the state in dividends from last year's taxed profit of almost SKK 767.3 million. Government privatization agency the National Property Fund (FNM), a sole shareholder of the company, made the decision at the annual general meeting on Thursday. "The company will retain SKK 365.9 million in its statutory fund for investment projects," SEPS spokesman Igor Gallo told SITA on Thursday.
Real Estate Broker from Ludova Banka Family Enters Slovak Market
Real estate company Immo-Contract Slovakia, s.r.o., in which Ludova Banka holds a 24-percent stake, will launch its active operation on the Slovak market in the following days. Ludova banka spokesperson Jana Lukacova informed that the company will be buying, selling, and renting real estate.
UniBanka with Consolidated Taxed Profit of SKK 365.2 Mln. Last Year
UniBanka, a.s., earned SKK 365.2 million profit last year according to audited consolidated results calculated in line with International Financial Reporting Standards (IFRS), which is almost unchanged compared to the previous year. Net interest income dropped 8.8 percent to SKK 898.6 million y/y. On the other hand net income from fees and commissions improved by 6.8 percent to last year's SKK 396 million. Other operating costs increased by 13.9 percent to SKK 614.7 million. This information was released by the Bratislava Stock Exchange (BCPB).
B.O.F. Reports 2005 Consolidated Profit of SKK 153.7 Mln.
Leasing company B.O.F., a.s. Bratislava reported a consolidated profit of SKK 153.7 million according to IFRS for last year. Taxed profit of the group thus dropped by more than 18 percent from 2004. The audited results of the company published by Bratislava Stock Exchange show that total revenues of the group fell by 12.3 percent to SKK 742 million over last year. Costs dropped 9.4 percent to SKK 546.6 million.
Slovak Telecom Important Player on Broadband Internet Access Market
Fixed line telecommunications operator Slovak Telekom, a.s., is an important player on wholesale broadband Internet access market, states an analysis by the Slovak Telecommunications Office market regulator. Because to its market position, Slovak Telekom is not exposed to effective competition. The company had 80.17-percent share on the aforementioned market at the end of last year, representing an increase from 73.94 percent registered at the end of June 2004. Gradual growth of Slovak Telekom's market share has been accompanied by decreasing market shares of other companies that provide broadband Internet access to end users over other technologies. Slovak Telekom's competitor the company UPC Slovensko, s.r.o. (UPC Broadband Slovakia), which provides broadband access through cable television network, holds the second highest market share. However, its share represented less than 16 percent at the end of last year. DSL technology is the most widespread way of end user connection, of which Slovak Telekom is the sole provider. Therefore there is no effective competition on the wholesale broadband Internet access market, said Telecommunications Office's spokesman Roman Vavro.
Bailout Agency SKo Closes Last Year in Positive Territory
State bailout agency Slovenska Konsolidacna, a.s. (SKo) closed last year with a profit of SKK 41.2 million. In 2004 it reported a loss of SKK 18.447 billion chiefly as a result of formation of additional provisions and reserves following a claims' inventory. "Last year's economic result was achieved from trade operations and it was not influenced by a loss from insufficient provisions as it had been in the past," SKo representatives informed SITA.
Site Supervisor Chosen for Piestany-Nove Mesto Track Modernization
Geotechnika -- SGS consortium, whose member are Stavebni Geologie -- Geotechnika, a.s. Praha, SGS Czech Republic s.r.o. Praha and SGS Slovakia, s.r.o. Kosice, will be a site supervisor in modernization of the railway track between Piestany and Nove Mesto nad Vahom. Railway network operator Zeleznice Slovenskej Republiky (ZSR) signed a contract with the consortium for SKK 122.4 million on May 22. The contract will be co-financed from the EU Cohesion Fund. Modernization of the track has been launched in mid-May.
MONEY MARKET:Shortest Deposits Prices Down due to Liquidity Surplus
The interbank market opened on the first day of June in a high liquidity surplus, which arose after the settlement of two-week repo tenders with the NBS on Wednesday. OTP Banka dealer Juraj Mitosinka stated that commercial banks deposited SKK 33.464 billion in their reserve accounts in the National Bank of Slovakia (NBS) starting to meet the minimum reserve requirement for June on a cumulative basis at 146.07 percent. Additional SKK 31 billion ended in overnight sterilization in the central bank. The prices of the shortest deposits thus remain closely over the one-day sterilization rate in the NBS representing 3.0 percent p.a. after key interest rate rise on Tuesday.
STOCK MARKET: SAX Index Loses 0.75 Pct. on Thursday
The official SAX share index dropped almost 3 points in trading on Thursday. Weakening shares of pharmaceutical company Biotika and power engineering company SES Tlmace were behind the SAX losing 0.75 percent or 2.92 points to 388.04 points. Turnover on the Bratislava Stock Exchange (BCPB) slightly increased from SKK 138.1 million on Wednesday to SKK 163.2 million on Thursday with only SKK 736,000 in share trading.
Company Wants to Build a Serpentinite Waste Processing Plant
Limited liability company Silicon s.r.o. wants to build a plant for processing of old stockpile of serpentinite waste that remained after extraction of asbestos in Dobsina in the Roznava district. The construction of the new plant should cost around SKK 500 million. Official representative and co-owner of the company Michal Neubauer and Alena Pietrikova from Technical University in Kosice informed about the intention to build a new plant for processing of this old ecological burden at a press conference on Thursday.
Electronic Signature Use in Slovakia is Still Low
Extent and utilization of the electronic signature by citizens is directly proportionate to the number of applications offered to citizens by state authorities, said the head of the information safety and electronic signature section of the National Security Office (NBU), Peter Oravec. "The electronic signature is already in use today, however, it still can be used only at a small number of offices, such customs or tax offices. "The public procurement is currently also getting in the final stage of electronic services' offer," said Mr. Oravec. Use of the electronic signature is, according to him, safe, however, it must not be paralyzed by a change in legislation. "I would say that an electronic signature is thousand-times safer than a hand-written signature," added Mr. Oravec. He sees a legislative problem in the fact that amended definition of an electronic filling room has been dropped from the latest revision to the law on electronic signature.
Ludova Banka to Pay almost SKK 225 Mln. in Dividends
At their annual general meeting on Monday, shareholders of Ludova Banka approved the payment of SKK 202.1 million in dividends from last year's taxed profit of SKK 224.5 million. The bank will also pay SKK 23 million in dividends from a part of unappropriated earnings from previous years. A dividend per a common share thus represents SKK 1,232, which is 22 percent of its face value and a dividend per preferred share amounts to SKK 1,150, which is 23 percent of its face value. The bank will transfer almost SKK 22.5 million from last year's profit to the reserve fund, Ludova Banka representatives informed the press on Thursday.
FOREX MARKET: Trading on Thursday was Calm
Trading in the Slovak crown was very quiet on Thursday, when the local currency's exchange rate against the euro moved within a narrow band of six hallers. Tatra Banka dealer Bibiana Valachova told SITA that the crown opened at 37.80/37.83 SKK/EUR and closed at 37.77/37.80 SKK/EUR. "Low interest in trading also persisted on neighboring markets," stated the dealer. She assumes that the Slovak crown's exchange rate should stay between 37.65 SKK/EUR and 37.90 SKK/EUR on Friday.
AIM Members Report SKK 67.7 Mln. Advertising Revenue in Q1 2006
The members of the Internet Media Association (AIM) reported revenues of SKK 67.7 million for publishing advertisements on web pages within their operation in the first quarter of this year. This is a 47-percent increase compared to Q1 2005, when advertising revenues reached SKK 46 million. Revenues from banner advertisement represented SKK 35.1 million and other revenues amounted to SKK 32.6 million, informed the AIM. These sums include agency commissions provided to those ordering the advertisement.
Ministry Reacts to Statements of EuroFondy pre Slovensko
The discussion to the National Strategic Reference Framework, which outlines priorities for drawing EU funds in 2007 to 2013, was sufficient and its quality was high, said Ministry of Construction and Regional Development spokesman Jan Palffy. He reacted to statements by the civic Association EuroFondy pre Slovensko from Thursday claiming that the National Strategic Reference Framework was formulated on a political order and prefers interests of one political party over national interests. "All materials were discussed in working groups, which consisted of representatives of counties of Slovakia, the Union of Cities and Villages, the Association of Towns and Villages of Slovakia, representatives of the third sector, employers' groups, Slovak Academy of Sciences, various professional chambers, ministries, etc. Everybody, who represented a certain relevant group, could have participated in individual meetings," stated Mr. Palffy.