News Parkiet

Civil engineering

Mostostal Zabrze may get another chance

Failing building contractor Mostostal Zabrze got a reprieve from one of its main creditors, Polish investor Zbigniew Opach, who said Mostostal doesn't have to pay back 22.5 million zloty it owes. Mr. Opach bought Mostostal debt along with 24.6 percent stake in the company, becoming both a major creditor and a shareholder. He said he would try to help to company, once southern Poland's main construction group, recover from its financial woes, cutting deals with other creditors and restructuring its operations.

Equity market

Broker FM hearing delayed

Radio broadcaster Broker FM has asked the to attend a court hearing that's supposed to rule on whether it is possible to manipulate stock price during and IPO. The SEC has asked Polish courts to investigate the case after Broker FM's competitor published a negative report about the company during last year's offering.

Food industry

Elstar Oils reports lower earnings

Canola oil maker Elstar Oils reported lower second-quarter earnings because ongoing expansion of its main facility in Olsztyn slowed down production, the company said. Earnings were down 30 percent from last year to PLN 1.4 million. Revenues were slightly lower at PLN 30.1 million. Elstar said earlier it plans earnings of approximately 7.1 million zloty for all of 2005. First-half profits totaled just 2.7 million zloty.

Forestry products

Paged misses estimates

Timber wholesaler and furniture manufacturer Paged S.A. said its second-quarter earnings totaled just 4 million zloty, or 30 percent below last year's figures. Warsaw-based company blamed poor situation on the domestic market and in Germany. Paged said its domestic sales reached just 50 percent of the target. Total revenues were down 6 percent to PLN 71.3 million.

BDM PKO BP brokerage, one of the few stockbrokers that follows Paged, expected earnings of 4.5 million zloty on revenues of PLN 87 million.

Information technology

ATM may pay its first-ever dividend

Fiber optics network operator ATM may pay its first ever dividend from this year's profits, deputy chief executive Tomasz Czichon said yesterday. Owner of ATMAN fiber optics' ring in Warsaw, ATM plans 8 million zloty in earnings on 108 million zloty in sales for the fiscal 2005. The company may pay up to 30 percent of this year's earnings as dividends to shareholders, Czichon said.

Ratings

DI BRE raises Kęty's rating to 'hold'

Analyst Michał Marczak of Dom Inwestycyjny BRE Banku raised his 'reduce' rating on Gruupa Kęty packaging manufacturer to 'hold'. The target price for Kęty, whose shares are part of the WIG20 blue-chip index, was set at 129.5 zloty. The stock closed at 137 zloty in yesterday's trading.

Marczak attributed higher rating to the prospects of three upcoming acquisitions and an improving economic situation.

Outdoors equipment

Lubawa sees stronger 2Q

Military gear and outdoors equipment maker Lubawa had a 'much better' time during the second quarter, chief executive Witold Jesionowski told PARKIET yesterday. The company reported 1Q earnings of just 118 000 zloty on some 3 million zloty in sales. According to preliminary estimates, six-month earnings totaled PLN 1.4 million. Detailed financial report for the three months to July will be published on Friday.

Pharmaceuticals

Jelfa in talks with potential suitors

Generic drug manufacturer Jelfa said it has begun talks with the six international firms interested in buying publicly traded company. Jelfa's management said it wants to safeguard company's interests as the Polish government and its allies sell their controlling stake in the company. The six bidders for Jelfa include two private equity funds, Enterprise Investors and Advent International, Latvia's Grindex, AB Sanitas from Lithuania, Ivax Corporation and India's Lupin.

Jelfa's shares rose 6.33 percent to 67.2 zloty yesterday after Enterprise Investors said it has offered to pay a premium over Tuesday's closing price.

Conglomerates

Alchemia signs mystery deal

Shares of Alchemia S.A., a former tannery rose as much as 4.4 percent since late July, closing at 21 zloty yesterday as the company turned to a new, more profitable business. Formerly known as Garbarnia Brzeg, Alchemia said it has signed a trading contract worth up to 15 million zloty a month that would generate enough profits to offset 1H loss of some 3.7 million zloty. However, Alchemia's Karina Wściubiak won't name its new business partner. She also refused to say what kind of goods her company plans to sell to make a profit.