Business News

Steklarna Hrastnik Glass Manufacturer Stays in Black

Hrastnik, 21 August (STA) - Glass maker Steklarna Hrastnik reported on Wednesday a EUR 1.3m operating profit for the first seven months of the year, which is 22% above plans. Earnings before interest and taxes stood at EUR 1.9m.

Steklarna Hrastnik boss Andrej Božič, who told the press that the company was now changing its focus from growth to profitability, said that revenues were down 4% to EUR 29.1m year-on-year.

He said this was the result of an upgrade in one of the programmes, which put production on hold for two months, and that the shortfall would be covered by the end of the year.

Announcing plans for the future, Božič said that following a big investment into two new production lines the company is expected to increase production in 2016 from the present 120 tones of glass to between 160 and 180 tones.

The revenues of Steklarna Hrastnik, which makes tableware, container glass and glass for lights, are expected to increase to up to EUR 65m, while profit is also expected to rise considerably.

As regards the ongoing sale of the company, he said that due diligence was presently being conducted. Božič expects at least two binding offers and a conclusion of the sale by October this year.

Steklarna Hrastnik, generates more than 95% of revenue with exports, with customers including Hennessy, Finlandia, Bacardi, Villeroy & Boch and Heineken.

The business daily Finance has reported that the company is for sale because it has been successfully restructured and now faces a new investment cycle.

The company's principal shareholder, Ampelus, is controlled by Igor Lah, one of the wealthiest people in Slovenia.

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