Izolacja Jarocin upbeat about results

2009-12-08



Izolacja Jarocin, a company specialising in the production of asphalt and roofing felt, expects to post stronger results this year than in 2008, although its final figures will depend on revenue and expenditure recorded in the final quarter, according to Parkiet.
The firm's optimistic outlook is due to recent cuts it has made in costs of labour, materials and energy consumption. On the other hand, there are a number of factors beyond the manufacturer's control, including the price of petroleum, which have a direct impact on prices of oil-based materials, such as asphalt and the plastic packaging used in production. Izolacja Jarocin's senior management points out that prices of these products have jumped by between 20% and approx. 50% since January 2009. Other factors of major importance are the exchange rates of currencies in which the firm buys its raw materials, as well as the slowdown on the residential construction branch and a lower than expected number of orders from the road engineering sector. The company is also facing tough competition from other companies operating in the sector.

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