Vetropack Holding cuts profit guidance on Ukraine currency devaluation

Vetropack Holding AG, a Swiss producer of packaging glass, on 16 December 2008 reduced its net profit outlook for 2008 due to the fall in the Ukrainian currency.
As a result of the extreme devaluatio…

Vetropack Holding AG, a Swiss producer of packaging glass, on 16 December 2008 reduced its net profit outlook for 2008 due to the fall in the Ukrainian currency. As a result of the extreme devaluation of the Ukrainian hryvnia against the US dollar, Vetropack expects net profits for 2008 to be around CHF 30 million (USD 26 million) lower. Ukrainian subsidiary OJSC Vetropack Gostomel obtained its loans in US dollars. The hryvnia“s fall of over 50% in the past two months has led to exchange rate-related losses which will be booked in the 2008 consolidated income statement. In spite of a slowdown in market growth, the operating performance of the whole Vetropack Group is in line with expectations. Vetropack Gostomel is also profitable from an operational point of view.