Sklo Bohemia of the Czech Republic, a leading producer of lead glass, suffered decreased profits after changing distributors in the middle of 1996. After the last general meeting, the CEO Jiri Belsky …
Sklo Bohemia of the Czech Republic, a leading producer of lead glass, suffered decreased profits after changing distributors in the middle of 1996. After the last general meeting, the CEO Jiri Belsky said that the end of Sklo Bohemia“s relationship with Skloexport and the beginning of its cooperation with the new company Bohemia Crystalex caused a decrease both in the number of orders the company received and its profitability. The unfavourable situation lasted for the entire second half of 1996, when, after a change in ownership, Sklo Bohemia returned to Skloexport. Although sales in 1996 totalled Kc 720 million, Kc 18 million more than in 1995, not all the production was sold and the period of stock turnover increased from 115 to 165 days. Growth in domestic markets partially compensated for a drop in exports, which made up 65% of sales. While profits totalled Kc 4.7 million, the company“s own resources did not cover financial requirements. Bank loans and subsidies rose to Kc 387 million, an increase of 28.8% on the previous year. In 1996, the company had revenues of Kc 745.7 million, Kc 558.8 million of which came from the production of goods. Revenues decreased by Kc 101.8 million, while the production of goods fell by Kc 67.2 million. Production plans were not fulfilled because of problems with production lines for lead glass and technical difficulties with lines for egg-cups, Mr. Belsky said.