HŽ Infrastruktura, along with its five subsidiaries, is expected to generate revenues of two billion kuna by the end of the year, of which 1.5 billion kuna should come from the state budget.
This was stated today by the company’s CEO Branimir Jerneić at a press briefing in Zagreb, who added that slightly more than one billion kuna will be spent on salaries (890 million kuna for employees in HŽ Infrastruktura and 160 million kuna for employees in subsidiaries). Jerneić presented the business results for the first nine months of this year, stating that they collected 93 million kuna less from the state budget than in the same period last year, but achieved a profit of five million kuna (compared to a loss of 20.6 million kuna for the same period last year). Extraordinary revenues were generated from the sale of real estate and apartment rentals amounting to 46 million kuna, obligations to suppliers were reduced by 108 million kuna and now amount to 380 million kuna, and payment deadlines have also been reduced to 55 days. – I note that this Management Board found payment deadlines of 129 days at the time of takeover in September last year. The goal is to reduce deadlines to 40 days by New Year – said Jerneić.
In addition, savings were made by introducing transparent and efficient public procurement amounting to 100 million kuna by reducing procurement costs, as stated by Management Board member Ivan Matasić, by 20 to even 67 percent, and expenditures for overtime and daily allowances were reduced by 5.5 million kuna. For severance payments, two-thirds less money was paid than last year in the same period thanks to successful negotiations with unions, so severance pay was reduced from 200 thousand kuna net to 160 thousand kuna gross, and in subsidiaries to 140 thousand kuna gross. A total of 70 million kuna was paid for severance payments. He noted that the average salary is 6,800 kuna, so he considers this severance payment system very favorable. Jerneić added that since the beginning of the current Management Board’s term (September 2009), the number of employees has been reduced by 790, and now 7,000 are employed in HŽ Infrastruktura and 800 in subsidiaries. – We have funds for severance payments this year for another 80 employees, and we also plan to reorganize the company where there will be 90 surplus employees from the financial sector. Some of them will still be employed in other services – said Jerneić.
