||Lithuania Business News: Archive 2003-2006
Saturday, 15th of July
FDI in Lithuania reach EUR 5.65 billion
Foreign direct investment (FDI) in Lithuania reached LTL 19.518 billion as of April 1, a rise of 3.8 percent versus January and a surge of 16.9 percent from the year-earlier figure. FDI per capita made up LTL 5,745, up by 17.8 percent versus LTL 4,874 a year earlier.
Denmark accounted for the biggest share of FDI in Lithuania, at 14.6 percent, followed by Sweden with 13.7 percent, Russia with 13 percent and Germany with 11.2 percent.
FDI from the EU countries were LTL 14.588 billion and accounted for 74.7 percent of total direct investments . FDI from CIS states, art LTL 2.599 billion, covered 13.3 percent of the total.
Kauno Diena, Respublika
Money in circulation
Currency in circulation in Lithuania rose by LTL 219.2 million over June, to reach LTL 6.9 billion at the end of the month, the Bank of Lithuania reported. External assets of the central bank shrank by LTL 29.1 million in June, to reach LTL 11.5 billion. Deposits by residents shrank by LTL 46.9 million, mostly due to transactions, and made up LTL 3.7 billion at the end of the month.
Austrian plane makes forced landing at Vilnius airport
A Dash-8 plane of Austria's airline Tyrolean Airways made a forced landing due to a malfunction in Vilnius on Friday. Alvydas Sumskas, deputy director of Lithuanian Civil Aviation Administration, said that the pilot of the plane flying from Riga to Vienna with 49 passengers and 4 crew members aboard had reported about a failure in one of two engines and asked for permission to land at Vilnius International Airport. The plane landed successfully. The Tyrolean Airways plane performed a flight of the company Austrian. In Sumskas' words, the Austrian company is to decide how the passengers should be transported from Vilnius.
Lietuvos Rytas, Lietuvos Zinios, Respublika
Friday, 14th of July
Vesiga took over fish processing firm
A sauce producer UAB Vesiga, marketing products with Daumantai brand, has acquired a fish processing company Pelemide. The sum of the deal has not been announced. UAB Vesiga plans to invest LTL 6.4 million in the newly acquired company.
The new shareholders claim that the fish processor started exporting its production to the Western Europe after the deal.
Kauno Diena, Verslo Zinios
PML posts profit
Philip Morris Lietuva, the Klaipeda-based tobacco plant, posted LTL 64.835 million in pre-tax earnings for full 2005, a surge of 94 percent versus the year-earlier figure of LTL 33.402 million.
The company's turnover rose by 68 percent, to LTL 448.194 million, from LTL 265.949 million in 2004.
Philip Morris Lietuva aims to plough over LTL 20 million into the expansion of manufacturing at its Klaipeda plant by the end of 2006.
Customer counting system installed in Akropolis
Vilnius Akropolis has installed a customer counting system in its trade and entertainment centres Akropolis. The new system will make it possible to calculate customer flows precisely and to analyse them.The customer counting system was put into action on July 1.
Vilnius Akropolis paid LTL 200 thousand for the system installed by Arevita company.
More than 13 million people visited Akropolis centres in Vilnius and Klaipeda in 2005.
Vilniaus Akropolis has reported LTL 476.369 million pre-tax profit for the last year. Companys turnover stood at LTL 78.158 million in 2005, or 2.1 times more than in the previous year, when the turnover amounted to LTL 37.414 million.
Thursday, 13th of July
Lithuanias government renounces its pre-emptive right to buy oil refinery
Lithuania's government has renounced its pre-emptive right to buy the 53.7 percent in Mazeikiu Nafta (Mazeikiai Oil or MN), which is still controlled by Russia's oil company Yukos, to the benefit of Poland's oil concern PKN Orlen.
Acting economy minister Kestutis Dauksys confirmed that the decision, the adoption of which was postponed a fortnight ago, had been passed, and the waiver would be sent by the end of this week.
"The government ruled to waive the pre-emptive right since the agreements with PKN Orlen have already been signed and approved by the parliament. The government has made a move that should speed up the process," said Nerijus Eidukevicius, vice-minister of Economy.
The waiver of pre-emptive right only concerned this transaction, Eidukevicius said.
Estonian Hansabank seeks to acquire remaining shares of Lithuanian Hansabankas
Estonia's commercial bank Hansabank seeks to implement a mandatory buyout of remaining shares in Hansabankas, the second largest Lithuania's commercial bank, from small shareholders.
The Securities Commission will decide on Thursday whether to approve the mandatory buyout price as proposed by Hansabank.
Hansabank currently owns 99.92 percent of Lithuania's Hansabankas.
The Hansabankas group posted LTL 44 million in unaudited net profit for the first quarter of 2006, a rise of 26.4 percent versus the year-earlier figure of LTL 34.8 million. Its assets surged by 50.5 percent, year-on-year, to LTL 13.1 billion as of late March.
Support to public tourism projects
LTL 12.9 million of the European Union funds and LTL 4.3 million from the Lithuanian state budget have been allocated to another six public tourism projects of Lithuania.
The contracts on support were signed on Wednesday, the Ministry of Economy reported.
LTL 76.3 million support has already been allocated to public tourism projects. On the whole, it is planned to allot LTL 282.8 million for the public tourism area.
Kauno Diena, Verslo Zinios
Wednesday, 12th of July
Pieno Zvaigzdes raises sales by one-fifth
Pieno Zvaigzdes, the leading Lithuania's dairy group, posted LTL 248.7 million in preliminary sales for the first half of 2006, a rise of 20 percent versus the year-earlier figure of LTL 206.4 million. The rise in sales resulted on a 35 percent surge, to LTL 110 million, in exports, which comprised 44 percent of total sales, Julius Kvaraciejus, Pieno Zvaigzdes chairman, said.
Pizza market leader Cilija enters Poland and Ukraine
Cilija, the operator of the largest Lithuania's chain of pizza restaurants, which is also active in Latvia, is entering the markets of Poland and Ukraine. The company New Vision Baltija has announced the signing of one-year agreement for the installation of specialty systems at Cilija subsidiaries in those two countries. Sigita Zalyte, Cilija marketing manager, has confirmed that Cilija has established subsidiaries in Poland and Ukraine, although she would not disclose the plans of the pizza restaurant operator in those countries.
Cilija currently controls 37 public catering establishments in Lithuania and nine in Latvia.
Lietuvos Zinios, Lietuvos Rytas
Lithuania's consumer spending with Visa branded cards surges 42 percent to EUR 3.7 billion
Overall spending with Visa branded cards by Lithuania's consumers totalled EUR 3.7 billion in a year ended on March 31, 2006, a surge of 42 percent versus the year-earlier figure. Some EUR 3.1 billion were withdrawn with Visa cards at ATMs, a rise of 57 percent compared with the previous year ended on March 31, 2005. Payments with Visa branded cards at trade outlets surged by 40 percent, year-on-year, to reach EUR 593.1 million in the reporting period. Lithuania's residents used their Visa branded cards on 78.1 million occasions in the reporting period, a rise of 27 percent year-on-year.
Lietuvos Zinios, Verslo Zinios
Tuesday, 11th of July
Lithuania's exports rise 29 percent
Lithuanian exports grew by 29.3 percent to LTL 15.733 billion in the first five months of this year from a year earlier, while imports rose by 28.2 percent to LTL 20.426 billion. The foreign trade deficit for the five months widened by 24.9 percent year-on-year to LTL 4.693 billion, according to preliminary data based on customs declarations and Intrastat reports. The rise in exports largely resulted on a 41 percent surge in exports of mineral products, 58.1 percent rise in exports of land transport vehicles, 80.4 percent growth in exports of plastics and articles thereof, and a 23.5 percent rise in exports of furniture.
Lietuvos Zinios, Respublika
Lithuania's budget revenues almost 2 percent above target
The Lithuanian central government collected LTL 6.867 billion in budget revenues in the first half of this year, exceeding its target by almost 2 percent or LTL 131.4 million. Total revenues including EU support funds amounted to LTL 8.191 billion. In June alone, the central government's budget revenues came in at LTL 1.34 billion, which was LTL 2.4 million more than planned.
Lietuvos Zinios, Lietuvos Rytas, Respublika
SEB Vilniaus Bankas doubles net profit
SEB Vilniaus Bankas, the largest Lithuania's commercial bank by assets, reported LTL 131.9 million in preliminary unaudited net profit for the first half of 2006, a surge of 2.1 times versus the year-earlier figure of LTL 62.5 million. The unaudited net profit of SEB Vilniaus Bankas group, meanwhile, rose by 1.5 times, to LTL 120.3 million, from LTL 78.1 million in January-to-June of 2005.
Monday, 10th of July
Vilniaus Vingis reports lower sales
Vilniaus Vingis, deflection yokes producer for colour picture tubes, posted LTL 34.4 million sales in the first six months of this year, a decline of 27.2 percent since the same period a year ago when the sales came in at LTL 47.3 million.
Darius Oziunas, finance director of Vilniaus Vingis, claims that the results are really not bad with regard that the company lost two main clients this year Panevezys-based Ekranas and Samsung in Berlin.
The groups income amounted to LTL 4.7 million in June. Solely Vilniaus Vingis reported income of LTL 3.5 million.
Lietuvos Zinios, Verslo Zinios
New plans will boost expenses for power
Power grid Rytu Skirstomieji Tinklai (RST) is to apply new payment plans for power as of next September. Some companies will have to pay more for electricity. The aim of the new plans is more efficiently use the present wattage. Those companies that have more wattage will pay more from September.
Lietuvos Zinios, Kauno Diena
Sanitas sales increase
Sales of Sanitas pharmaceutical group surged by 2.7 times, year-on-year, to LTL 44.59 million in the first half of 2006, from LTL 16.3 million in January-to-June of 2005. In June alone, the sales totalled LTL 18.37 million, a six-fold surge versus the year-earlier figure of LTL 3.3 million. Six-month sales by Sanitas alone rose by 7.9 percent, to LTL 17.56 million, including LTL 10.53 million in sales on foreign markets and LTL 7.03 million in sales on home market. Sales in Latvia comprised 23 percent of consolidated Sanitas' sales in the first half of 2006. Sales in Germany accounted for 17 percent of total figure, in Lithuania - 16 percent.
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