News Parkiet

Mining

Treasury pushing for board changes at KGHM

New Polish Treasury Minister Jacek Socha may try to replace at least some state-appointed board members at KGHM Polish Copper mining conglomerate at the next meeting in early July. The government, which retains 49 percent stake in the company, picks five out of nine board members at the mining group.

Government

Poland to open up professional services

market

Polish government is working on a new law that would bring more competition to various trades now controlled by professional associations and guilds, including lawyers, architects and notaries in response to complaints about price collusion.

UOKiK anti-trust authority criticized lawyers? guilds and others for restrictions on new entrants and overpricing.

Equity markets

Inter Cars up 7 pct. on IPO

Shares of Inter Cars auto parts distributor rose 7.1 percent from their IPO price on Wednesday, closing at 22.5 zloty. Earlier this month, privatization funds controlled by Ballinger Capital raised over 80 million zloty selling 30 percent of the Warsaw-based company to the public at 21 zloty per share. Inter Cars CEO Krzysztof Oleksowicz said his firm has no immediate plans to sell new stock.

Food industry

Sokołów to start paying dividends

Poland?s largest meat processing company Sokołów SA has finally decided to start paying dividends after years of spotty performance and consolidation-related expenses. Sokołów, which is part owned by Finland?s HK Ruokatalo said shareholders can expect first dividend payments next year.

Last year Sokołów posted net earnings of 19.2 million zloty on revenue of PLN 1.04 billion ($265 million).

Corporate governance

Irena?s margins lower because of commissions to shareholder

Payments to a major shareholder are reducing earnings of Irena SA glass-making plant. Inowrocław, central Poland-based Irena sells about 40 percent of its production on the international markets through privately held Minex trading group, which has a 24.6 percent stake in the company. Irena, which has quarterly sales of just over 20 million zloty refused to say how much it pays its shareholder.

Energy

Alstom Power earnings decline

Polish subsidiary of France?s Alstom group reported lower earnings for 2003 because of extra provisions for ZE PAK power plant. Alstom Power said yesterday its earnings in the twelve months to March 2004 fell to 58.9 million zloty ($15.1 million) from PLN 117 million reported in the fifteen-month period starting January 2002. Sales were down from 1.4 to 0.9 billion zloty. The French blame weaker performance of their Polish unit on the suspension of major contract at Zespół Elektrowni PAK after the plant has run out of money to finish a new power block there.