Stock of refrigerator producer Arctic continued to fall on Bucharest Stock Exchange, particularly after the company reported first quarter losses standing at 28 billion lei. The last Arctic quotation registered during Monday’s session reached 830 lei per share, 1.2 percent lower as compared to the previous session.
This stock’s value was almost half the price registered at the end of last year, when the stock was traded at 1,600 lei per share, despite brokers’ forecasts, according to which the stock was not to drop below 1,000 lei per share this year.
Arctic recorded gross operating profit of 19.2 billion lei, half the profit posted during the similar period of last year.
Expenditures on interests, exchange rate differences, and especially expenses on amortisation and provisions led however to a loss of 28.09 billion lei. Although expenses on amortisation and provisions are non-cash expenses, meaning that no money left the company, losses generated by them are pushing the perspective of Arctic dividend distribution even further in time.
Giuseppe Nardelli, the company’s financial director, says that losses were on schedule, but they were not included in the company’s income/expenses budget.
He also stated that representatives of some important brokerage companies came to the company and the information they received determined them to change their recommendation to investors from “hold” to “buy”.
The information could not be validated by capital market analysts, who say that the company has to provide further information.
Household and commercial refrigerator producer Arctic Gaesti registered on the first quarter of this year losses amounting to 3.8 billion lei, amid turnover worth 169.4 billion lei, the plant’s profitability posting a significant fallback as compared to the similar period of last year.
On the first three months of last year, the company reported net profit standing at 15.1 billion lei, amid turnover worth 120.3 billion lei.
The weak evolution registered on the first three months was due to a higher increase in operating expenditures and in expenditures associated with material expenses.
In 1999, the company registered net profit worth 14.07 billion lei, amid turnover standing at 650.7 billion lei. During the same period, the company posted revenues totalling 828.2 billion lei and gross profit amounting to 22.5 billion lei. The company’s shareholders decided not to grant dividends for year 1999.