Gorenje Warns of 2008 Profit Loss Dec 9, 2008

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Slovenian household appliance maker Gorenje said that 2008 group net profit could be below the forecast of €26.5 million (approx. US$33.98 million) by one third due to the global financial crisis.

"The negative effect of numerous cancellations of orders in the last weeks and other foreseen negative factors might reach the scope up to one third of the planned net profit in the year 2008," Gorenje said in a statement.

Gorenje had expected 2008 group net profit would rise by 11.8% from €23.7 million last year, while sales were seen steady at €1.3 billion.

The company said financing was the major problem for its business partners and the main reason for cancellations, while consumer demand was also falling. It said the first quarter of 2009 is also expected to be "very difficult."

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