News Parkiet

Equity markers

Fourth quarter sales rose substantially,

analysts say

Fourth quarter sales at major Polish corporations were much higher than in the same period in 2003, equity research analysts polled by PARKIET say. A survey of stockbrokers shows strong top-line growth at key resource and TMT companies.

Banking

BRE reports wider fourth-quarter loss

Commerzbank unit BRE Bank reported fourth-quarter loss of 386 million zloty because of massive charges at pension fund subsidiary and revisions to comply with new accounting standards. BRE, Poland's no. 5 lender by assets, said its fiscal 2004 loss totaled 278 million zloty because of 163 million zloty write-down of its stake in PTE Skarbiec Emerytura, a private pension fund, goodwill write-offs and other charges.

BRE's new chief executive, former retail unit executive Sławomir Lachowski said the bank expects gross earnings of 250 million zloty this year. The company also said it plans to raise its return on equity to as much as 20 percent in 2007.

Equity markets

Stock brokers overloaded by IPO orders

CDM Pekao and other large retail brokers are facing complaints by some investors who say their IT systems are too slow to handle the number of IPO orders. One investor who tried to buy shares of Polmos Lublin vodka distillery says it took CDM Pekao four hours to accept his order.

Krzysztof Polak, the head of BM BPH, another brokerage, says the number of complaints against his firm stems from its popularity and the number of accounts it handles.

Power industry

ZE PAK borrows money from friendly bank

Zespół Elektrowni Pątnów-Adamów-Konin power plant took a 47 million zloty emergency loan from Invest Bank, a second-tier financial institution that belongs to media magnate Zygmunt Solorz-Żak. Mr. Solorz-Żak, better known as the founder of Polsat TV station, holds a large stake in ZE PAK through Elektrim SA, a publicly owned power and telecoms group.

Separately, sources close to the situation said cash-strapped plant is negotiating extension of 220 million zloty loan from NFOŚiGW, a government agency that finances environmental projects.

Metals

Śrubex IPO begins

Śrubex SA, Central Europe's no. 1 manufacturer of screws and industrial fasteners, begun taking orders in a two-day, 51 million zloty Initial Public Offering today. It plans to sell as many as 1.02 million new and existing shares at 50 zloty each.

Shares of Śrubex of Łańcut in south-central Poland are set to begin trading on the WSE on or about February 17, chief executive Wojciech Fedko said.

The IPO is managed Millennium DM and CDM Pekao.

Textiles

Novita meets target despite 1H loss

Novita SA, a publicly traded carpet manufacturer, reported fiscal 2004 earnings of 1.9 million zloty, or 0.6 million dollars yesterday after a cost-cutting program that stemmed losses in March and June quarters.

The company said earlier it expects earnings of around 2 million zloty on sales of PLN 95 million. Actual revenue figure totaled PLN 95.25 million, with EBITDA earnings at more than 10 million zloty.

Shares of Novita gained 3.1 percent to close at 13.15 zloty on the news.

Private equity funds

EI buys bottle cap maker for PLN 380 million

Enterprise Investors, a US private equity fund with strong exposure to Polish stocks, bought an 80 percent stake in DGS, the country's biggest bottle cap manufacturer for 380 million zloty ($122 million) in a deal announced yesterday. DGS founder Krzysztof Grządziel retained operational control and a 20 percent stake in his firm.

Włocławek-based company reported fiscal 2004 sales of some 215 million zloty, EI said at a conference yesterday. Over half its products are sold abroad, mainly to UK and Germany.

Michał Rusiecki from Enterprise Investors, said DGS could be floated on the WarsawShares of Ciech chemicals group will begin trading on the Warsaw Stock Exchange this Thursday, company spokesman Marek Klat said yesterday. Ciech sold 11.5 million new and existing shares in a hugely successful IPO late last month raising a total of 276 million zloty for itself and its shareholders, including the government. The offering was twenty times oversubscribed.