Business News

Half Year Profit for Gorenje 30% Higher to EUR 6.4M

Velenje, 29 August (STA) - The group around household appliance maker Gorenje reported on Monday a EUR 6.4m net profit for the first half of 2011, a more than 30% increase year-on-year. Without the loss recorded by Asko, the Scandinavian company acquired by Gorenje last summer, the group's net profit would have stood at EUR 12.4m.

Sales revenues increased by 22% compared to the same period last year to EUR 744.6m, earnings before interest, tax, depreciation and amortisation (EBITDA) were level at EUR 43.6m and earnings before interest and taxes 9% lower at EUR 17.9m.

Gorenje attributes the lower earnings to the expected loss recored by Asko as a result of a modest scope of sales and production in the first quarter and intensive activities for the business integration of Asko in the Gorenje group. The negative effects are expected to be neutralised in 2012.

Gorenje chairman Franjo Bobinac told the press he was happy with the results given the situation, explaining that the prices of raw materials were stabilising while the situation on the markets remained unpredictable.

The company will continue to try to keep things under control with product and service development activities and improved sales on the 70 or so markets it is operating on.

"A key role will also be played by the strategic plan for the period until 2015 which will be completed in September," Bobinac added.

The Gorenje group spent EUR 23.9m for investments in the first six month of the year.

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