Gorenje Tops 2010 Profit Plan in First 9 Months
Nov 24, 2010
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Appliance producer Gorenje Group, based in Velenje, Slovenia, reported sales revenue of just under €966 million in the first nine months of 2010, up 11.6% than in the first nine months of 2009. The company considerably boosted its operating profit (EBIT), reaching €44.4 million. Net income of €16.8 million exceeded the annual plans by almost 66% in the first nine months alone.

Sales in the Home Appliance Division totaled in the first nine months of 2010 were just over €700 million, up 9.3% over the first nine of 2009. The increase comes from a higher rate of business activity and improvement of composition of sales by products and by regions, particularly in Russia, Ukraine, Germany, Turkey, Greece, and the Scandinavian countries. In France, Bulgaria, Slovakia, Czech Republic, Poland, and the Netherlands, sales dropped slightly, partly offsetting the increase in former markets.

Eliminating the effect of the acquisition of Asko, the Swedish manufacturer of high-end home appliances that merged with the Gorenje Group as of Aug. 1, 2010, the increase in sales would have amounted to 5.5%.

The Division of Ecology, Energy, and Services saw the highest rate of growth at almost 23%, beating last year's sales by over €44 million. This division provides services in the areas of trade, engineering, agency services, restaurant and catering services, tourism, and real estate management.

The Home Interior Division, however, suffered a 13.5% decrease in revenues, which totaled just under €27 million. Lower business activity, Gorenje said, results from persistently harsh industry conditions and from deliberate cutbacks in product shipments to some partners whose financial condition is risky. This division manufactures kitchen and bathroom furnishings, sanitary equipment, and ceramic tiles.

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