Končar Distributive and Special Transformers (D&ST) achieved a net profit of 19.7 million kuna in the first nine months of this year, which is 15.2 percent lower than in the same period last year, according to the financial report of the company published on the Zagreb Stock Exchange.
The total revenues of the company during this period amounted to 477.5 million kuna, a decrease of 12.2 percent. The main reason for the reduced revenues is the uneven contracting for deliveries by quarters in 2012, which on one hand resulted in a decrease in revenues, and on the other hand a significant increase in the inventory of work in progress and finished products, as stated in the explanation of the business results.
In accordance with the state of contracted jobs for deliveries in the fourth quarter of this year, a significant reduction in the gap between achieved business revenues and planned revenues is anticipated, and accordingly a reduction in inventory.
The bulk of the company’s revenues comes from sales, which in the first nine months of this year decreased by 13.5 percent compared to the same period last year, amounting to 462.9 million kuna.
Končar D&ST incurred total expenses of 452.9 million kuna in the first nine months, a decrease of 12 percent. The business report also states that as of September 30, the value of contracted jobs amounted to 531 million kuna, an increase of 41 percent compared to the same day last year when it was 377 million kuna.
The trend of growth in contracted jobs represents a good basis for future business, it is noted. The company’s management assesses that the overall condition of the company is stable, and activities are ongoing to enhance the contracting of new jobs, as well as to rationalize operations, improve organization, make developmental breakthroughs, reduce costs, and generally enhance the competitive advantage of Končar D&ST in the market.
