Latvian Valmiera Glassfibre said it is targetting a stable to slightly lower 2000 net profit against a 0.6 million lat 1999 target as lat currency appreciation against the Euro and mark continue to we…
Latvian Valmiera Glassfibre said it is targetting a stable to slightly lower 2000 net profit against a 0.6 million lat 1999 target as lat currency appreciation against the Euro and mark continue to weigh. “We have set our turnover target at 13.8 million lats (US$ 23.6 million) and we would still be working on the profit target figure by end-January,” Imants Saulitis, Valmiera finance manager said. “We are targeting the 1999 (net profit) level (of planned 0.6 million lats), but we could come in below that,” Saulitis added. Valmiera also said currency fluctuation is making the firm raise prices, with the marketing department expected to be ready with a subsequent profit target around 20 January. Valmiera said it has lost 9% of its revenues, some 200,000 lats, in currency exchange fluctuations and gave a profit warning in the fourth quarter, putting its net profit target figure at 0.6 million lats, versus an earlier planned 0.78 million lats. Its turnover in 1999 came to 13.5 million lats. Valmiera had 84% of its sales go to Euro and mark zones in 1999, including 46% to Germany. Valmiera said its strategy remains to position itself between larger western European producers and lower-priced CIS producers. “We have to pick products which western behemoths do not want to fiddle with and, at the same time, not to compete with state subsidized CIS factories by majoring in technically more complicated products,” Valmiera General Manager Inars Polaks said. Valmiera expects its unaudited 1999 balance sheet to be ready around 15 February and its shareholders“ meeting expected to be set for 29 April.