News Parkiet

Privatization

Poland to continue privatization under Jacek Socha

'Privatization process has to be more open and transparent' former chairman of the Polish Securities and Exchanges Commission Jacek Socha said yesterday after taking over as Poland's new Treasury Minister. Socha's appointment prompted speculations that Polish government will resume sale of key assets through public offerings on the Warsaw Stock Exchange.

Pharmaceuticals

Recordati may go to court over Polfa takeover bid

Italian drug-maker Recordati may go to court to block competing takeover bid of leading Polish pharmaceutical company Polfa Kutno by Miami-based Ivax Corp. Recordati's CEO Giovanni Recordati told PARKIET on Monday, his company has asked Securities and Exchanges Commission to investigate competing bid, alleging that Ivax broke Polish securities laws by publishing newspaper ads addressed to Polfa's shareholders.

Information Technology

ComArch reiterates forecasts for 2004

Top Polish maker of billing software, Kraków-based ComArch S.A. expects 20 percent growth in earnings and sales after posting much higher first quarter earnings. Founded in early 1990's, ComArch said it earned 2 million zloty versus 1.55 million zloty last year. The figure for 2003 excludes special gains after ComArch reversed previous provisions on investment in Interia.pl web portal. First-quarter sales were up 47 percent to 37.2 million zloty. During the first quarter the firm signed new contracts with phone companies in Finland, France, Montenegro, Iran and Lithuania totaling PLN 25 million ($6.5 million). Separately, ComArch founder and CEO Janusz Filipiak said this company has no plans to buy back 40 million zloty worth of convertible bonds issued in early 2002 or pay dividends. Instead, ComArch will use some of its cash to build new main office near Kraków. ComArch stock is a component of MIDWIG mid-cap index and TechWIG IT index.

Construction

Projprzem sees record earnings

Publicly traded building contractor Projprzem S.A. is expecting record earnings this year after posting nine-fold increase in the first quarter, traditionally the weakest period for Bydgoszcz-based company. Projprzem, which has a market value of just 54 million zloty said on Monday its 1Q earnings were up to 0.68 million zloty on sales of PLN 18.6 million. 'Demand for our services is huge', says Chief Executive Henryk Chyliński. 'We expect even stronger earnings in the following quarters', Chyliński says. The company hired 80 new employees because of order backlog from customers in Germany and in Poland. In addition to construction services, Projprzem sells custom-made steel components used by larger building companies.

Construction

Ferrovial subsidiary cuts red ink

Poland's largest construction company, Ferrovial subsidiary Budimex S.A. said it has narrowed its losses for the first two months of this year to 6 million zloty. However, sales at the Warsaw-based company in January and February fell by half to just 193 million zloty. Budimex, which owns one of Poland's largest road-building firms and specializes in large scale projects still expects sales to exceed last year's 2.14 billion zloty after resuming multi-million dollar contract to build new passenger terminal at Warsaw's Okęcie airport.

Power industry

Rafako expanding regional export sales

Rafako power plant supplier has signed several new contracts totaling 60 million zloty ($15.5 million) with customers in Southern and Eastern Europe. New deals in Russia, Serbia, Rumania, Turkey and the Czech Republic are worth between 3 and 18 million zloty each. By next year Racibórz, Southern Poland-based company expects its first payments for large-scale contracts to build sulfur removal systems at key Polish power plants. Total value of these projects is estimated at 300 million zloty.

Home furnishings

AAgata furniture retailer has announced the opening of its fourth sales outlet in Poland, located in Warsaw. Privately held company said it would rent a 28.000 square meter facility, including a large showroom and an adjacent warehouse from its competitor, Germany's Walther Meble. The firm, which has annual sales of approximately 70 million zloty has postponed IPO plans, Chief Executive Grzegorz Przondziono told PARKIET yesterday.