Gorenje Reports Increased Q1 Results
May 15, 2006
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Slovenia-based appliance maker Gorenje had a relatively successful start to the year, increasing its revenues to SIT 55.3 billion (approx. U.S. $297.8 million) during the first quarter of 2006, up 2.4 percent compared to the same period last year.

The group also managed increased net profit to just over SIT 1 billion (approx. $5.3 million) in the same period, up 1.8 percent year-on-year.

Gorenje's supervisors said that both the group and the core company are operating well and in line with plans. The biggest hazards for the company Velenje in 2006, according to analysts, are volatile prices of resources, such as metals and plastics, and the implementation of the EU directive on recycling, which entered into force in Slovenia in August 2006.

Gorenje will try to offset the negative impacts by cost optimization, search for cheaper suppliers, and a rise in prices of some of its products.

It also expects a lot its the new refrigerator and freezer factory in Serbia-Montenegro, which will begin operation in October. (Slovenia Business Week)

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