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Cimos Group Generates Almost EUR 98M Loss in 2012

Koper, 30 April (STA) - The group around the troubled car parts maker Cimos generated a net loss of almost EUR 98m in 2012, with the core company's net loss accounting for EUR 74m, Cimos said on Tuesday.

The group, which made a minor net profit in 2011, suffered a fall in revenues from EUR 480.7m in 2011 to EUR 445.6m last year, with sales revenues dropping from EUR 455.6m to EUR 417.5m.

The core company's revenues meanwhile fell from 413m in 2011 to EUR 388.5m last year.

While the car parts maker generated EUR 4.7m in operating profit in 2012 (down EUR 11m from the year before), the group's EUR 30m operating profit from 2011 turned to an operating loss of EUR 59.4m last year.

The group's stock also skydived from EUR 139.3m in 2011 to EUR 22.5m at the end of 2012, and the core company's stock was more than halved sliding from EUR 116m to EUR 50.3m.

Cimos chairman Jerko Bartolić explained that the company was faced with severe liquidity problems, resulting from the lack of working capital and high indebtedness, so he deems the relatively low decline in revenues encouraging.

In the audited results, EUR 75m of impairments have been added on group level and EUR 78m for the core company. However, Bartolić stressed the correction would have no additional negative effect on liquidity.

Bartolić labelled as crucial for the salvaging of the troubled company an agreement on the company's financial restructuring and aid signed last week by Cimos, its owners, creditor banks and the state after weeks of negotiations.

According to yesterday's media reports the agreement stipulates that the company with some 7,000 employees, of which 3,000 in Slovenia, should get soon after the May Day holidays the first part of the total EUR 35m in loans, which are to be followed by a capital hike and sale of some of its assets.

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