Gorenje Meets Profit Target in 2005 Feb 27, 2006

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Slovenian-based home appliance maker Gorenje reported it finished 2005 with a net profit of SIT 5.1 billion (approx. U.S. $28.3 million), which is 0.8 percent more than a year earlier and in line with plans, the company said.

According to Gorenje, the company generated net revenues of SIT 243 billion (approx. $1.2 billion, which is 12.4 percent more than in 2004 and is 3.4 percent above plans.

The company said that the forecast-beating results come despite difficult conditions on the market. According to the management, the European market -- Gorenje's most important export destination -- continued to be weighed down by economic stagnation and low consumer confidence.

Moreover, the company was hit by a weak U.S. dollar and rising raw material costs, forcing it to seek alternative suppliers and to increase the prices of its appliances.

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