Mostostal Export posts profit after three-year loss

2004-05-05

Mostostal Export, a construction and assembly concern, plans to get back to its core business, i.e., exports of construction work. The company signed several contracts in Russia but some of them have not been carried out because of a lack of financial insurance from investors. Mostostal has not begun the construction of residential complex worth $150m, but the contract is still binding and the firm may start work, says Michal Skipietrow, Mostostal Export's president. Mr. Skipietrow added that, because of a lack of financial insurance from investments, the firm has not begun to execute contracts in Kazakhstan and Belarus. Currently, Mostostal Export is involved in contracts in Russia with a total value exceeding $50m. Mr. Skipietrow claims that 80% of the 2004 revenue will come from Russia. The company, which showed a consolidated net loss of PLN 60m in 2003, estimates that the value of its work in 2004 and 2005 will total PLN 232m.
Mostostal also wants to sell its plot in Pola Mokotowskie in Warsaw. The company intends to earn PLN 6m from this transaction.

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