Gorenje's Quarterly Results Above Expectations May 10, 2004

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Slovenian appliance group Gorenje reported consolidated net sales revenues of 199 million euros (approx. U.S. $235 million) in the first quarter, up 7 percent year-on-year. The net profit amounted to 3.6 million euros (approx. $4.3 million), up 12.3 percent over the same period last year, the Velenje-based home appliance maker said.

The parent company Gorenje, meanwhile, generated net sales revenues of 144.7 million euros (approx. $171 million), up 14.2 percent year-on-year, while the net profit stood at 3.95 million euros (approx. $4.7 million), up 16.3 percent from the first quarter of 2003.

As to the future business prospects, the company says it will have to face tougher conditions on the markets of Bosnia-Herzegovina, Macedonia, and Croatia, due to Slovenia's entry into the European Union and consequent cancellation of free-trade agreements with the countries.

According to the company, plans have been threatened by two unexpected factors, namely the trade union's demands for higher wages and a price rise in raw materials, which could cut profits, according to Gorenje management. (Slovenia Business Week)

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