Konsorcjum Stali, the listed steel distributor, had PLN 3.71m (EUR 1.1m) of net income in the first quarter, or 30 percent less than in 2007. Sales fell 20 percent to PLN 90.8m. Meanwhile Bodeko, which is currently merging with Konsorcjum Stali, had PLN 176.35m of sales (14.1 percent increase) and PLN 7.84m of net income (19 percent up). Consolidated results amount to PLN 267.13m of sales and PLN 11.47m of net income. They are, respectively, 0.33 percent and 3.99 percent lower than in the same period of last year.
“The reason is that we have different clients. Konsorcjum Stali delivers products to construction companies which have not been very active recently. Bodeko sells its products to wholesalers”, Robert Wojdyna, Konsorcjum Stali CEO explained.
He added that there are lots of enquiries from potential clients and many contracts signed. The clients ask to have the deliveries delayed as they cannot launch their contracts. Bodeko has no such problems. Its clients, wholesalers, believe that steel prices will continue to grow and they buy it eagerly.
(PLN 1 = EUR 0.290)