Gorenje Boosts 2003 Profit By 20 Percent Mar 1, 2004

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Slovenian home appliance maker Gorenje reported unaudited net sales revenues of 542.6 million euros (approx. U.S. $677.9 million) last year, which is an increase of 7.8 percent over 2002 and 1.3 percent below the business plans.

Meanwhile, net profit jumped by 22.4 percent to 20.1 million euros (approx. $25.1 million), exceeding plans by 5.7 percent, the Velenje-based company said.

Lower than planned figures of sales revenues were prompted by the transfer of the home appliance sale to the subsidiary company GTI in the second half of 2003, the company said in a statement.

The Gorenje group, which includes the parent company and subsidiaries at home and abroad, recorded unaudited net sales revenues of 826 million euros (approx. $1.03 billion) in 2003, a rise of 8.1 percent compared to 2002, which exceeded business plans by 2.3 percent. The group's net profit amounted to 19.9 million euros (approx. $24.8 million) in 2002, which is a rise of 15.1-percent year-on-year, but 4.1 percent short of expectations.

According to Gorenje management, the business results were satisfactory given the harsh market conditions last year, namely low economic growth in the EU and other Gorenje export markets, lower consumer confidence, and weak dollar against euro. (Slovenia Business Week)

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