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Elan on Track to Break Even Next Year

Begunje na Gorenjskem, 22 December (STA) - Slovenia's sporting goods company Elan will have concluded the year according to expectations, generating EUR 97m in revenues and a EUR 3m loss in the nautical division. The company plans to break even next year.

The ski division will end the year in the black, while the boat part remains in the red as a result of lower revenues due to lower demand for big boats, despite the planned volume sales.

The operating results were reviewed by the supervisory board on Tuesday with company chairman Robert Ferko assessing the year as an excellent one.

Elan has sorted out problems that cause company failures during crisis; it has carried out a reorganisation and restructuring, refunded debt and solved the mortgage problem.

"This way we have made the financial position and capital structure sustainable," the chairman said.

Aside from focusing on consolidation, Elan has been investing in new products and technologies that have met with good response from key customers and strategic partners.

For next year the majority state-owned company plans to return to profit on EUR 85m in revenues.

Ferko is upbeat about the future of the winter sports division, which has developed a totally new concept for next season, and the nautical division, which is developing four new models.

An additional EUR 7m in revenues in 2011 is planned to come from a project with German Siemens in which Elan will produce elements for wind turbines.

A five-year agreement on a second phase of cooperation with Siemens is to be signed these days to upgrade the partnership under which Elan launched manufacturing of tools for wind turbines production in May.

The cooperation with Siemens will create 40 new jobs, while Elan will also have to purchase hardware. The company counts on a EUR 40m capital injection, of which EUR 2m will go for the project with Siemens and the rest will be invested in marketing and development of new technologies.

Elan is looking for a new owner and will shortly publish a call for applications so as to select a financial adviser that would help the current owners find a new financial or strategic partner.

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