News Parkiet

Politics

Belka calls for public finance reform,

economists skeptical

Polish prime minister Marek Belka pledged to continue public finance reform program in a speech before the parliament on Friday. Belka, 52, promised to increase old-age benefits, reduce unemployment and speed up privatization hours before a no-confidence vote later that evening.

Most economists who followed Belka's speech say parts of his plan seem unrealistic and doubt he would be able to push through some of the more radical measures through the parliament.

Real estate

Globe Trade Centre posts weaker Q1

earnings after asset sale

Leading Polish property developer Globe Trade Centre (GTC) posted lower operating earnings and sales after it sold 50 pct. stake in a shopping mall in Warsaw. GTC, which begun trading on the Warsaw bourse just days ago said its earnings fell from 13.9 do just 2.1 million dollars because last year's figure included a special, one-time gain on its real estate portfolio. The company nevertheless says its earnings figures remain on track and expects greater profits in the second half of this year after an expansion into the Czech Republic, Hungary, Romania and Serbia.

Information Technology

Prokom Q1 earnings below expectations

Poland's largest IT services company, Gdynia-based Prokom Software said on Friday its first quarter earnings were up 12 percent to PLN 12.9 million despite lower sales. That compares with analyst expectations of 18 million zloty. Revenues for the quarter were down 19 percent to PLN 301 million because of the postponement of a crucial contract with PZU insurer and smaller projects for the Post Office. The company expects stronger earnings and sales in the following quarters, CFO Dariusz Górka said.

Power industry

Elektrim can't find ZE PAK stock certificates

Elektrim power and telecoms group has reportedly 'misplaced' stock certificates that give Warsaw-based conglomerate operational control over Zespół Elektrowni PAK power plant.

Court officials and sources at the company say it will take 'a while' before the company receives new documents confirming its ownership title. Elektrim retains its voting rights, depsite the loss of its stock certificates.

Chemicals

Sanwil to call of stock sale plan

Publicly traded artificial skin maker Sanwil SA is unlikely to go ahead with planned secondary offering to raise funds for expansion in Russia. Shareholders of Przemyśl-based company wanted to give management the right to sell up to 2.5 million new shares in three years' time to pay for a 50 percent stake in a joint venture near Moscow. However, the project was called off because of excess risk on the market there.