Business News

Iskra Avtoelektrika's Group Profit Down in First 9 Months

Šempeter pri Gorici, 13 November (STA) - The group around car electronics maker Iskra Avtoelektrika generated EUR 186.7m in sales revenues in the first nine months of 2012, which is 0.6% more year-on-year. However, the group's net profit was down to EUR 1.5m from EUR 3.9m in the first three quarters of 2011.

According to unaudited results published on the website of the Ljubljana Stock Exchange on Tuesday, the stagnation of sales is the result of lower demand in the third quarter.

The group's results are also burdened with the loss incurred as a result of the sale of an Iran subsidiary in March, which cut the group's profit by EUR 2.4m, which is however in line with the plans.

The core company generated a total of EUR 144.6m in sales revenues in the first nine months, which is 1.7% less than in the same period last year. The company's net profit meanwhile grew by 22.1% year-on-year to EUR 2.5m.

In line with the company's mid-year expectations, demand in the automotive sector started declining in the second half of the year and a drop of as much as 15-20% is forecast for the last quarter, upon which the demand is to pick up in February or March.

Although the conditions mean the annual plans will most probably not be met, the management of Iskra Avtoelektrika pointed out that both the core company and the group will end the year in the black.

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