Slovenia-based appliance maker Gorenje said it managed to overcome the rising prices of raw materials to increase its half-yearly profit by 2.5 percent to 7.5 million euros (approx. U.S. $9 million).
According to the group, operating revenues grew by 9.1 percent to 413 million euros (approx. $500 million) in the 6-month period.
Earlier this year, the management had warned the group may see its profit fall short of targets because of the soaring prices of raw materials, particularly steel. Gorenje said it expects that market conditions will remain difficult in the second half of the year.
In related news, the supervisory board of Gorenje was introduced to the company's efforts to purchase industrial land in the Serbian city of Valjevo, where it wants to launch production of home appliances.
The new plant in Valjevo, which is valued at around 12 million euros (approx. $14.5 million), is expected to employ 200 to 250 workers at the scheduled launch of operations in the second half of 2005. (Slovenia Business Week)
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