Restructuring in Krosno will give PLN 17m of savings

APA - Austria Presse Agentur
opublikowano: 16-12-2005, 18:22

Warsaw (Puls Biznesu) This year, Krosno, Poland¹s biggest producer of glass used in households, may not have earnings promised in its forecast it had revised down in summer (to PLN 12-14m from PLN 22m, or EUR 5.7m).

Warsaw (Puls Biznesu) This year, Krosno, Poland¹s biggest producer of glass used in households, may not have earnings promised in its forecast it had revised down in summer (to PLN 12-14m from PLN 22m, or EUR 5.7m).

We are doing our best to fulfill those forecasts, Jan Kurkus, Krosno CEO said.

The problem is that in the first three quarters of this year, the company had only PLN 5m of net income.

The fourth quarter seems to be worse than the same period of 2004, Jacek Soltys, Krosno deputy CEO for financial issues complained.

Krosno¹s problems are connected with exchange rates. The company settles half of its sales in dollars, 25-30 percent in euro, 5 percent in GBP and only the Rest in zlotys. There is, however, a chance to fulfill the forecasts.

But it depends on one-time events, the CEO admitted.

He means here the settlement of selling a building where the old plant was located to Tesco. Talks are being held with trade unions, which if successful may allow to close reserves for severance payments. The company will also sell some of its assets.

This year may be weak but the management is optimistic as far as 2006 is concerned.

We have conducted restructuring and we have cut employment. Results will be noticed in 2006, Jan Kurkus promised.

According to the management, PLN 17m will be saved thanks to the changes.

Moreover, Krosno is re-launching sales to Japan, Australia or Holland. The CEO believed that Krosno will have net income at the level achieved in 2004 PLN 18.5m.

(PLN 1 = EUR 0.258)

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Podpis: APA - Austria Presse Agentur

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