Polish Business Survey
Furniture sales looking up
Jarocin furniture manufacturers JFM are hoping that their restructuring process will lead to profits this year. In the first ten months of 2000 the company noted profits of PLN1m, compared to a loss of PLN3.8m in the same period last year. Nonetheless operating losses stand at PLN5.5m.
Management is aiming to improve the situation by concentrating on limiting operating costs. This year they have limited them to PLN12m on the same production level as last year but with a PLN1m saving.
They are also trying to limit their assets. The company has sold its leisure resort and last week signed a contract to sell property in the centre of Jarocin. By the end of the year the company hopes to have collected PLN3.1m from the sale of property.
The company has PLN15m worth of orders on its books and hopes to close the year with sales at PLN65m.
JFM is hoping to find new export markets as well as updated solutions for existing clients. Sales contacts with Russia and the Ukraine have been renewed after having been quiet for some time. The company is also hoping to get a PLN6m order this week for furnishing a five star hotel in Berlin.
Changing business
Plans to change the business of Częstochowa based Yawal are under way. The company is no longer interested in basing its core activity around aluminium profiles and is hoping to concentrate on the media. However a lot of cash is needed to further these ambitions. That is why it is trying to raise it through the sale of two of its production companies: Yawal System and Final.
Edmund Mzyk, managing director of Yawal said that western companies had proposed too little for these companies. That is why he has not sold them yet.
He does not want to say how much he thinks they are worth. The only thing that is known is that the figure is in the order of tens of millions of zloty.
The Swedish Sapa had shown an interest but now negotiations are at a stand still. Yawal is therefore seeking alternatives.
One of these alternatives is a share or bond issue which would find their way into the hands of an investor.
The company needs around PLN30m to launch Y-Radio.
Yawal has bought an American programme to manage radio programmes at a what it terms a minimal cost. It was aimed at starting up this year but due to limited funds, kick-off has been postponed until 2001. Mzyk is aiming at having 25 radio stations within three years.
Intercell to invest PLN100m
Packing producer Intercell has announced that it intends to invest PLN100m next year in increasing its product range.
Jerzy Janowicz, managing director of Intercell said that this investment was essential if the company is to maintain its position as market leader in certain of its brands.
Electrical sales poor
The third quarter of this year did not bring the expected relief for the white goods sector. Results for the third quarter were still poor although they were better than this time last year. One of the largest players, Amica, was one of few to be happy. It made a net profit of PLN40.7m on a PLN595.5m turnover.
Chemical industry is hard sell
It is clear now that it will be hard to find investors for companies in the chemical industry. Potential buyers are unhappy with the plans of privatisation advisors Business Management and Finance to sell off the plants whole.
Protecting the rail monopoly
Most of the 21 companies that have concessions for private rail operations will lose them. The law stated that those who had not begun operations by the end of October would not be allowed to operate concessions at the same time as the transport ministry made it impossible for private companies to work.
Okocim to commence brewery
Next spring, beer manufacturers Okocim are planning to start rebuilding their brewery at Brzesko near Kraków at a cost of around PLN300m. Analysts feel, however, that this may be a little too early to begin production when a sales network has not yet been established for the extra beer.
Scania takes over Volvo
In the first ten months of this year around 3,020 lorries over 16 tons were sold. After leading the pack for many years, Volvo Trucks has been beaten into second place by Scania.