News Parkiet

Privatization

Treasury officials looking for new jobs

At least some senior officials at the Polish Treasury Ministry are searching for new jobs ahead of parliamentary elections this fall, delaying privatization projects and leaving the department in disarray. Sources familiar with the situation say Treasury Minister Jacek Socha has already found a job as chief executive of the Polish unit of Deloitte. Meanwhile, one of his deputies, former SEC official and the existing undersecretary Dariusz Witkowski who managed Treasury?s stock market privatization strategy was appointed as executive board member at PKN Orlen oil refinery, a company that is part-owned by the Polish government.

Power industry

ZE PAK secures financing

to restart construction at Pątnów II

Zespół Elektrowni Pątnów-Adamow-Konin power plant has received 222 million euro loan to restart construction of a new power block there. Construction of Pątnów II was suspended two years ago after the plant run out of money to continue the project. Sources close to the situation say several publicly traded building and power industry contractor may gain new orders at Pątnów II. The biggest beneficiaries include Alstom and Rafako power plant builder. ZE PAK chief executive Katarzyna Muszkat says her company is negotiating an additional contract to build a 300-million zloty sulfur removal system with Rafako.

Glass manufacturing

Krosno to expand into Asia,

Latin America

Glass-maker Krosno SA is expecting stronger sales in the second half of 2005 as it seeks to expand on new international markets. Publicly traded company already sells three-quarters of its output abroad through three distribution companies in the US, United Kingdom and Russia. Krosno, which has a huge workforce of some 6000 people reported sales of about 72 million zloty in the seasonally weak first quarter. Earnings totaled just 1.6 million zloty. Chief executive Jan Kurkus says second-quarter was better for the company. However, Kurkus expects his company to do much better in the second half of 2005.

Information technology

MacroSoft slowing down

Software house MacroSoft SA, maker of popular ERP software package for small business says it won?t be able to beat last year?s record sales, driven by EU accession. MacroSoft, which has a 6 percent market share by its own estimate, saw its earnings shrink in half in the first quarter of 2005. Chief executive Sławomir Kosz now expects a recovery near the end of this year or in early 2006 when small businesses receive another round of Phare financing.

Engineering

Energomontaż-Północ launches new strategy

Warsaw-based power industry building contractor Energomontaż-Północ is refocusing on its core business after a failed foray into home-building that has nearly pushed the company into bankruptcy. New chief executive Wlodzimierz Dyrka says Energomontaż is expecting a profit on the sale of surplus properties left over from real estate buying spree several years ago. ?The company has been cleaned up?, Dyrka says. ?We?ve signed a settlement with the Social Security, rescheduling the repayment of our debts?, he added.

Energomontaż, which was taken over and rescued by Italian firms Gloria Sarl and Sices International is now going back to its roots as power and oil industry builder, Dyrka said. The company expects to work on Pątnów II power block and other big projects at PKN Orlen oil refinery.

Banking

Nord/LB boosts lending in Poland

Corporate lender Nord/LB Polska, a unit of Germany?s Nord/LB boosted its 1H lending to as much as 1.1 billion zloty, or 330 million US dollars. The bank provided financing to nearly 80 investment and other projects, local executives said at yesterday?s conference. Nord/LB is expecting at least 14 million zloty in earnings this year. First-half profits totaled 8.2 million zloty, the company saidShares of CCC shoe retailer rose to a new all-time high of 16.1 zloty yesterday after a positive report issued by CA IB Securities and stronger expectations of future earnings. CA IB Securities equity analyst Przemysław Sawala-Uryasz, who set a target price of 13.9 zloty for CCC in a previous report says investors will have to wait until July 27 for an upgrade. Meanwhile, CCC?s spokesman Mariusz Gnych says the firm may raise its earnings estimate in a six-month report, due in late October. CCC said earlier it expects 31.4 million zloty in earnings on sales of PLN 325 million in fiscal 2005.