Business News

Gorenje Loss Widens

Velenje, 19 November (STA) - Home appliances maker Gorenje reported a EUR 18.2m loss for the first nine months of the year, almost three times more than in the same period of last year, mostly on account of impairments of financial investments and one-off effects of the disposal of a subsidiary.

The loss was caused by one-off effects, but the company is expected to end the fourth quarter with a profit, which will improve the end-year figures, the company said on Tuesday.

Operating profit (EBIT) was up 5.7% to EUR 23.6m on the back of sales revenue that contracted by 1.5% to EUR 897.1m, according to the unaudited Q3 report.

Nevertheless, the company said it increased revenue in its core home appliances business by a percent, raising its share of the European appliances market by 0.22% to 3.51%.

Gorenje said the results of the relocation of production from Sweden to Slovenia and from Slovenia to Serbia would affect the bottom line next year.

CEO Franjo Bobinac described 2013 as "one of the most difficult years for Gorenje", but said it was nevertheless successful with the relocation of production and the strategic partnership with Panasonic of Japan.

"We've set the foundations for the development of the Gorenje group over the medium-term," Bobinac was quoted as saying.

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