Summary of economic news released on Friday, September 22
Lovinit Engineering Sold Goods of SKK 467 Mln. In 2005
Lovinit Engineering, s.r.o., Kosice, a company trading in fire resistant materials, reported sales of goods of SKK 466.9 million last year. Compared with 2004 this means an increase by 8.3 percent. Sales of goods swelled by 13.3 percent to SKK 398.3 million. Thus the company reported a gross margin of SKK 68.6 million in 2005, a decrease of SKK 11.4 million.
Slovakia With 13th Highest Net Diesel Price in EU This Week.
As of September 18, Slovakia was in the middle of the pack as far as net diesel prices within the European Union are concerned. Slovakia reported the thirteenth highest diesel prices in EU. Compared with the previous week, its position worsened one place even though net diesel prices decreased EUR 0.009 to EUR 0.516 per liter. This price still was above the EU average of EUR 0.509 per liter. Austria's Economy Ministry released these data.
Former NBS Vice Governor Kohutikova Heads to VUB Board of Directors
Former vice governor of the National bank of Slovakia (NBS) Elena Kohutikova will become a new member of the board of directors of VUB Banka as of October. She also will become the director of the bank's department of financial and capital markets. Bank spokesperson Alena Walterova also informed that Ms. Kohutikova also will be responsible for tasks linked to the adoption of the euro. "The euro is a great challenge not only for the government and the business sector, but in particular for banks. I am glad that I am arriving in the sector that will actually get the euro into the life of every citizen and all subjects in Slovakia," said Ms. Kohutikova.
Slovakia's July New Industrial Orders Grew at Fastest Pace in EU
New industrial orders rose as much as 33.6 percent in Slovakia in July, following a 25.1-percent growth in June. Eurostat, the Statistical Office of the European Communities, announced that this was the strongest growth in the EU. Poland reported the second highest growth in industrial orders at 28.1 percent. Industrial orders in Slovakia grew 4.8 percent m/m, which was the highest growth in the EU.
DSS Winterthur With Almost 412,000 Clients
The pension-fund-management company (DSS) Winterthur, a.s., administered the pension savings of almost 411,800 clients as of September 21. The company revealed the number of clients as of 18 months from the launch of pension funds. The standard period when pension-fund-management companies are not allowed to reveal the number of clients, lapsed on September 22 for Winterthur. The net value of savers' assets in DSS-Winterthur-managed funds exceeded SKK 5.96 billion as of September 21.
Coffee Roaster Popradske Praziarne With Sales of SKK 675.4 mil.
Coffee roaster and packager Praziarne, Baliarne Obchodu, a.s., Poprad (PBOP), reported sales of goods at SKK 675.4 million, down 1.3 percent y/y. Costs of sales declined over 4 percent to SKK 577.8 million. Trade margin increased over SKK 16 million. The company closed 2005 with a taxed profit of SKK 7.9 million, down over SKK 11 million.
Window and Door Maker Slovaktual Opens Fifth Production Hall
Producer and installer of plastic windows and aluminum doors Slovaktual, s.r.o., Pravenec, will open a newly constructed production hall on Friday, September 22. The new, 4,000 sq m hall allows for an expansion of production capacity. "The capacity of the new hall is 600 window units daily in night-and-day operation. This will increase the total production capacity to as much as 1,800 window units per day," informed the company. The new hall will allow labor expansion, creating more than 60 new jobs.
Labor Offices Paid Activation Contributions to 103,500 People in June
As of the end of June 2006, Slovakia has 103,500 socially-dependent job-applicants who carried out smaller municipal services or voluntary work for which they receive activation contributions from labor offices, according to data the National Labor, Social Affairs, and Family Office provide to SITA. The highest number of people involved in activation works was in the Banska Bystrica Region (26,100), and the Kosice and Presov Regions reported over 25,000 and 23,700 receivers respectively. An activation contribution was SKK 1,700 in late June 2006, and it has increased to SKK 1,900 from September.
Auto Martin Developer Decreases Share Capital SKK 83.3 Mln.
Auto Martin, a.s. Martin, securing a complex service in foreign investors' entry in Slovakia, has decreased its share capital almost SKK 83.3 million. Following the decision made at the annual general meeting of the company shareholders, share capital was lowered from SKK 103.1 million to SKK 19.8 million. "Based on the decision by Auto Martin's majority shareholder, the government privatization agency the National Property Fund (FNM), sources that were not necessary for further activities have just been withdrawn," company director and chairman of the board of directors Milan Novotny told SITA.
Velvetex With Net Profit of SKK 15.4 Mln. in 2005
Subsidiary of the textile company Ozeta Neo, VelveTex, a.s., returned into the black in 2005. The company reported a net profit of SKK 15.4 million. In 2004, however, it showed SKK 305,000 in losses. Total revenues were SKK 171.3 million, and sales of its own products and services were SKK 130.6 million. Production consumption had a considerable jump to SKK 130 million. Output, however, was SKK 158.7 million. Velvetex generated added value of SKK 28.6 million in 2005, but in 2004 it had a deficit of SKK 12,000.
Svum Posts 2005 Sales of SKK 188.8 Mln.
Svum, a.s., Sala, a company engaged in repairs and maintenance of machinery and facilities, had 2005 sales of it own products and services of SKK 188.8 million, down 9.2 percent y/y. Production costs fell 17.6 percent to SKK 70.1 million. The firm generated added value of SKK 119.6 million, down SKK 2.6 million y/y.
Kosice County and EIB Likely to Sign Loan Contract in November
Officials and experts of the European Investment Bank (EIB) have continued in negotiations with representatives of the Kosice country on the provision of a SKK 1.4 billion loan on Friday. EIB Vice President Ivan Pilip told SITA following the talks that the negotiations are successfully progressing and that they should be concluded by October. The loan contract probably should be signed in November. "The negotiations were matter-of-fact. Kosice County is a serious partner for us, and it has clearly formulated targets for using the money. Our experts evaluated these intentions positively, much in the same way as the performance of Kosice County. I believe that our bid is the best and that we could sign the contract already in autumn, in November," stated Mr. Pilip. The county wants to use a better portion of the loan for the reconstruction of its road network.
Slovakia's FOREX Reserves Fall This Week
The downward trend of Slovakia's foreign exchange (FOREX) reserves continues. They fell USD 356.8 million over the past week to USD 16.3533 billion as of September 20. A drop in commercial banks' reserve assets was mainly behind the decline, down USD 268.8 million in a week to USD 3.1935 billion. The National Bank of Slovakia's (NBS) reserves decreased as well, going down USD 88 million in a week to USD 13.1598 billion, the NBS press department informed SITA on Friday.
Banska Bystrica County Applies for Biggest Sums From EU Funds
Entities from the Banska Bystrica region requested the biggest sums of money from European Union (EU) structural funds as of September 13, 2006. A total of 1,555 applications worth SKK 32.214 billion were registered from this region, which is 18.5 percent of Slovakia's applications totaling SKK 174.2 billion. The value of 605 approved applications for entities from the Banska Bystrica county exceeded SKK 16 billion, and the value of 416 implemented projects was SKK 10.85 billion, according Construction Ministry data on structural funds.
Istrokapital Wants to Withdraw Shares From Bratislava Stock Exchange
The majority shareholder of financial company Istrokapital, a.s., Mario Hoffmann, plans to transform Istrokapital group in a supranational holding in line with European Union (EU) legislation. Istrokapital informed SITA that the first step to reach this goal is the withdrawal of Istrokapital shares from trading on the Bratislava Stock Exchange (BCPB). Shareholders approved this decision at their extraordinary general meeting on Friday. Shareholders holding 95.1 percent of Istrokapital shares attended the meeting. "Of them 99.899 percent voted for withdrawal of shares from the stock exchange trading, 0.098 percent refrained from the voting, and 0.003 percent were against it," the company representatives informed.
Perex Publishing House Reports H1 2006 Profit of SKK 24.2 Mln.
The daily Pravda's publisher, Perex, a.s., closed H1 2006 with a profit of SKK 24.2 million. In H1 2005, the profit was SKK 21.3 million. In July 2006, the British group Daily Mail and General Trust bought 100 percent of the publisher's shares through its affiliation Northcliffe International. Perex had H1 2006 sales of its own products and services of SKK 235.8 million, about an SKK-16-million increase y/y. Value added exceeded SKK 100 million on production costs of SKK 135.1 million. The balance-sheet total was SKK 122.7 million, of which current assets at SKK 79.4 million made up the most. The publisher's liabilities were SKK 72.8 million covered assets to a greater extent. Shareholders' equity was SKK 37.7 million.
MONEY MARKET Closed Week in High Liquidity Surplus
The interbank market closed the week in a high liquidity surplus. Tatra Banka dealer Jozef Bozek said that commercial banks deposited SKK 50.689 billion in their reserve accounts in the National Bank of Slovakia (NBS) on Friday, meeting the minimum requirement for September on a cumulative basis at 104.47 percent. Apart from this, an additional SKK 15.778 billion ended in one-day deposits in the central bank at a yield of 3 percent p.a. Only the NBS regular repo tender could enliven next week's trading. Mr. Bozek stated that banks now have so much in available funds that they could increase the maturing volume of SKK 119.94 billion up to approximately SKK 170 billion.
No Transformation of Hospitals into Joint-Stock Companies
Health Minister Ivan Valentovic informed about several prepared changes in his sector at a press conference on Friday. State-owned healthcare facilities, as teaching hospitals, will not be transferred into joint-stock companies. So that they could be transformed into joint-stock companies currently, they would have to declare bankruptcy because of their debts, Mr. Valentovic explained. He believes that financial situation of hospitals should be stabilized and that healthcare facilities should remain in state hands. However, the state will watch closely how they handle funds.
STOCK MARKET: SAX Index Firms 2.27 Points at End of Week
The official SAX share index reported gains at the end of the week. Its value rose 0.56 percent or 2.27 points to 404.44 points on Friday. Rising share prices of crude-oil refiner Slovnaft were behind this strengthening. Turnover on the Bratislava Stock Exchange (BCPB) dropped from SKK 604.1 million on Thursday to SKK 158.852 million on Friday, with a mere SKK 287,100 in share trading.
Five UNICE Members Criticize State Intervention in Energy Prices
Five central- and eastern-European member federations of the Union of Industrial and Employers Confederations of the European Union (UNICE) from Slovakia, the Czech republic, Austria, Hungary, and Slovenia criticize the attempts of individual governments to intervene in setting energy prices. "An important condition in this area, even in the case of Slovakia, is functioning and politically independent regulation. A long-term solution to the situation in energy is a further strengthening of liberalization on European level," member of the National Employers' Association`s (RUZ) Presidium Jan Oravec stated at a press conference on Friday.
FOREX MARKET: Crown Follows Development on Emerging Markets on Friday
Development on emerging markets determined trading in the Slovak crown at the end of week. Tatra Banka dealer Milan Cavojec said that the crown opened at 37.570/37.600 SKK/EUR. The crown weakened initially under the influence of the losses of the Polish zloty. Later, the Slovak currency strengthened, and the exchange rate stood at 37.520/37.540 SKK/EUR before the close of trading. Development of the surrounding markets' currencies probably will determine the direction of the crown's exchange rate over the next few days. Mr. Cavojec supposes that the crown could stay in the band from 37.450 SKK/EUR to 37.650 SKK/EUR.