Ingra reports a loss of 24.7 million kuna

Ingra reported a loss of 24.7 million kuna in the first half of this year, compared to a profit of 234 thousand kuna in the same period last year, according to the consolidated financial report published by the company on the Zagreb Stock Exchange.

Total revenues for Ingra in the first half of this year amounted to 145.5 million kuna, a decrease of 58.7 percent. Sales revenues, which constitute the majority of income, fell from 314.6 million kuna to 127.8 million kuna, while financial revenues also decreased by 29 percent to 16.57 million kuna. Ingra recorded a decline in total expenses in the first half of the year, down 52 percent to 170.29 million kuna. The explanation of the business results notes that despite unchanged business conditions in the sector and related activities still facing the consequences of the economic crisis, this period for Ingra was marked by the successful completion of the construction of a residential and commercial complex in Dubrovnik. The investment is worth over 55 million euros and represents Ingra’s currently largest investment project, the effects of which will be visible in the coming periods.

They remind that in May they signed a contract with the Ministry of Industry of Iraq, worth 4.2 million euros. Two contracts for the Macedonian market worth 4.1 million euros were also signed. The traditional market of Algeria remains Ingra’s largest export market, where they participate in tenders worth 230 million euros. Ingra emphasizes that a strong crisis is still felt in the construction and industrial engineering segment in most markets, and the high cost of financing projects currently makes many of them unprofitable, which is why Ingra has postponed some projects indefinitely.

To better adapt to the new market conditions, Ingra began restructuring at all levels in mid-2009. Fixed costs and the number of organizational units, as well as the number of employees, were reduced by 25 percent. In the first half of this year, the company continued to implement the initiated financial restructuring measures, successfully reprogramming tranches of commercial papers, while other financial obligations were regularly serviced. According to the plan, preparations began in early June to extend the maturity of 200 million kuna bonds from December 2011 to December 2016, as one of the key steps in the financial restructuring that will continue in the second half of the year. Stabilization of operations, driven by financial and personnel restructuring as well as new contracts in foreign markets, is expected during the next period of this year, Ingra states. (H)