Gorenje Reports on a Challenging Year
Mar 21, 2013
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Financial statements for Gorenje Group and parent company Gorenje, d.d. for full-year 2012 reflect a "highly challenging year" for the group.

The Group launched its most extensive manufacturing relocation undertaking in its history and pursued other deleveraging activities. Economic conditions in Europe, which accounts for 92% of the group's revenue, made 2012 an even more arduous one for the appliance maker.

The company had weak sales in the first nine months of the year but saw a reversal of the trend in the fourth quarter. Fourth quarter revenue topped the average for the previous four quarters (4Q 2011 and the first three quarters of 2012) by 6.9%.

Strong 4Q 2012 sales boosted EBIT (results from operating activities), which were up 2.9% from the year previous at EUR 44.9 million.

2013 is expected to be another challenging year for the company as it continues to reposition its manufacturing operations. It expects to see some positive impact of those changes by the end of the year, with the full effects materializing in 2014.

Gorenje Group's total 2012 revenue was EUR 1.26 billion, down 1.5% than in 2011. However, the company increased revenue in its core activities by 1.7%.

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