Gorenje Reports Financial Results
Mar 28, 2003
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Slovenian appliance maker the Gorenje group posted sales revenues of SIT 181.5 billion (EUR 782.5 million) in 2002, which is more than 13-percent more than the year before and 4.6-percent more than planned. The net financial result of the
group went up last year by 23.4 percent to SIT 4.1 billion (EUR 17.6 million), 6.1 percent over the expectations. Member of Gorenje's management Marija Miheljak, who is in charge of the group's finances, described 2002 as a very successful year.

In the structure of net sales revenues, home appliances recorded a 15-percent increase last year, while the other sectors of the
group failed to achieved the planned results, virtually remaining on the same level as in 2001. The share of sales from the field of home appliances in the structure of sales of the Gorenje group, which employs 8,610 workers, thus amounts to almost 85 percent. The group's assets at the end of 2002 totalled SIT 139.9 billion (EUR 603.1million), 14.7 percent up in comparison to 2001.

This year, the group has at its disposal SIT 17.6 billion (EUR 75.8 million) for investments, SIT 10.5 billion (EUR 45.2 million) of this is meant for the holding company, general manager of Gorenje Joze Stanic said. Most funds will be used for the construction of an automatic storage facilities, for further introduction of a standard information, system, and for the construction of a center for business, exhibition, and storage in Ljubljana. The Velenje-based group intends to start the works for the construction of a factory for Styrofoam packing and a business and storage centre in Belgrade, while some money is planned to be used for the acquisition of franchise stores in the Czech Republic.

According to Gorenje's Franjo Bobinac, 2002 was especially marked by recession on most EU markets, the reserve of many
consumers after the introduction of the euro, the crisis in the building industry, the fall in the value of the shares of some major
companies, the fear of unemployment, and the threat of a war in Iraq. Mr. Bobinac highlighted the situation on the German market, where Gorenje exports the most, and where the group's sales have been on the decrease since 1995. The sales in Germany therefore went down by 3.9 percent last year, the drop having been 4 percent the year before.

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