Gorenje, the appliance maker based in Velenje, Slovenia, reported revenue was down 3.3% from the first half of 2011. Lower Western Europe sales profits, but the group maintained and in some cases increased sales in a few markets with higher profitability, notably Germany, Russia, the United States, and Australia.
Adjusting for the impact of divestment of Istrabenz Gorenje divested in July of 2011, revenue in the first half of 2012 was EUR 618.6 million, down 3.3% than in the first half of 2011.
Sales in 2Q 2012 were down 1% from 2Q 2011, but were higher than adjusted sales in 1Q 2012.
Operating profit in the first half of 2012 was EUR 16.5 million, down 7.2% from the first half of 2011.
Net income (profit after taxes) in the first half was EUR 2.3 million, lower than last year, mostly because of currency translation and finance expenses.
"Conditions in upstream, downstream, and financial markets remain highly unpredictable and pose many challenges," said Gorenje President and CEO Franjo Bobinac. "The struggle for market shares in suitable sales structure on one hand, and intensified optimization of manufacturing operations and cost control on the other are the key activities we shall be focused on for the rest of the year. We shall continue to build the financial stability of our business system and to reduce our debt by sound management of inventories and receivables, and divestment activities."
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