Latvia: Valmiera Fiberglass 2002 profit exceeds company target

Latvian fiberglass manufacturer Valmieras Stikla Skiedra posted net profit of LVR 871,440 (EUR 1.387 million) for 2002, 2.5 times higher than the company“s target for the year. Valmieras SS financial…

Latvian fiberglass manufacturer Valmieras Stikla Skiedra posted net profit of LVR 871,440 (EUR 1.387 million) for 2002, 2.5 times higher than the company“s target for the year. Valmieras SS financial director Imants Saulitis said the company“s net turnover in 2002 was LVR 17.99 million , also up from the planned turnover of LVR 17.5 million. Year-on-year, Valmieras SS profit in 2002 rose 2.4 times over 2001 and turnover grew by 19%. In 2001 the company posted net profit of LVR 362,300 on a net turnover of LVR 15.113 million Saulitis said the large profit growth in 2002 was due to an increasein sales and in the number of customers. In addition, favourable currency exchange rates in 2002 helped the Latvian fiberglass producer. Valmieras SS sells principally in the EUR-zone countries, therefore the rising EUR rate had a positive effect on the company“s results in 2002. The company sold LVR 18.1 million worth of products last year, up 19% from 2001 when its sales were LVR 15.2 million. The growth in sales is attributed to the upgrading of production facilities at Valmieras SS in previous years and favorable exchange rate fluctuations. In 2003 the company expects its annual results to be on the same level as in 2002 but the 2003 budget is still awaiting approval, said Saulitis. Shares in Valmieras SS are quoted on the second list of Riga Stock Exchange. The largest shareholders in the company are German firms.