Mostostal-Export: PLN 4.6m loss in 2009

2010-03-04

Mostostal-Export reported sales revenues of PLN 22.8m (€5.8m) and a net loss of PLN 4.6m (€1.2m) in the closing quarter of 2009, as compared with revenues of PLN 17.2m (€4.4m) and a net profit of PLN 7.6m (€1.9m) in 2008.
Last year the company reported total earnings of PLN 80m (€20.5m) and sustained a net loss of PLN 13.3m (€3.4m). In the opinion of Mostostal's senior management, the negative result was a consequence of the company's need to maintain reserves to support investments scheduled in Russia. In addition, the company is keen to carry out a number of projects which, owing to the financial difficulties of their original investors, are now in the possession of banks. The latter want these investments completed quickly and at a profit. They are thus looking to work with tried-and-tested contractors, and Mostostal happens to have a good reputation on Eastern European markets.
At the present time, it is involved in talks for orders ranging in value from $35m to $180m and hopes to ink its first contracts in Q2. The company's senior management is likewise confident that its revenues, net profit and operating profit in 2010 will exceed last year's figures. Mostostal is planning to improve its financial results by, among other things, selling flats in an investment in Warsaw's Wola district – the company hopes to make several million zloty from this project.

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