||Lithuania Business News: Archive 2003-2006
Saturday, 2nd of September
Snaige fridge co to boost authorized capital in pursuit of full takeover of Kaliningrad plant
Snaige, the only household refrigerator manufacturer in the Baltics, aims to distribute a LTL 756,900 par value issue of shares among two Lithuania's and Russia's nationals in exchange for their 15 percent stake in TechPromInvest, the Snaige's subsidiary in Kaliningrad.
Snaige does not deny that some shares of Kaliningrad plant might be sold to a strategic investor in future, should the Lithuanian refrigerator producer succeed in executing the full takeover of the subsidiary.
Lithuania's RST power grid boosts H1 net profit
Lithuanian state-run power distribution company Rytu Skirstomieji Tinklai (RST) said its net profit for the first half of this year soared to LTL 21.941 million from LTL 1.545 million a year earlier.
The RST Group's consolidated net profits for January-June surged to LTL 20.192 million from LTL 2.698 million, according to the company's first-half financial report.
Heating prices grow by 31 percent in Litesko companies
Due to a more expensive fuel and other expenditures, the heating price will grow to 31 percent in the branches of Litekso, which belong to a French group Dalkia. The price of heating will grow in Marijampole most - by 31.49 percent, to LTL 16.95 for a kilowatt-hour. The heating price will grow by 30.08 percent, to LTL 19.33/ kWh in Vilkaviskis, by 28.53 percent, to LTL 16.85/kWh in Telsiai, by 28.15 percent, to LTL 16.75/ kWh in Palanga and by 25.81 percent, to LTL 18.33 in Birzai.
Kauno Diena, Lietuvos Zinios
Friday, 1st of September
New nuclear power plant
After Lithuania complies with its commitment to the European Union and shuts down the Ignalina Nuclear Power Plant in 2009, the new power plant will be built in 2013, the minister of economy Vytas Navickas claims.
According to him, companies should already watch closely all the processes related to the planned construction of a new power plant. The winners of the construction contest will be chosen in an international tender.
The minister of economy remarks that the most complicated period with regard to the electricity production expenses will be in 2009-2013 due to the rise of the global oil and gas prices.
Lithuanian state-run power distribution company Rytu Skirstomieji Tinklai (RST) reported that its net profit for the first half of this year soared to LTL 20.2 million from LTL 2.698 million a year earlier. At the end of June 2006, the net profit margin of the group amounted to 43.31 percent, while that of the company to 43.92 percent. The consolidate revenues of the group over the first six months of the year amounted to LTL 464.419 million, 10.2 percent rise year-on-year.
Lietuvos Zinios, Lietuvos Rytas, Verslo Zinios
Having completed check of the Unecha-Polockas route of an oil pipeline, an institution subject to the Russian Ministry of Environment announced that the repairs of the oil pipeline will not be started in the coming five months. It means that the Lithuanian oil refinery Mazeikiu Nafta (Ma_eikiai Oil or MN) will not receive oil through the pipeline this year.
MN representative Giedrius Karsokas assures that the oil refinery will continue functioning in full capacity. We import oil through Butinge [terminal] and we can supply oil to the oil refinery in such a way for a year. He adds that oil transportation by sea is more expensive, nevertheless, this will not affect petroleum prices.
Lietuvos Zinios, Lietuvos Rytas, Verslo Zinios
Thursday, 31st of August
Construction prices in Lithuania jump 9.8 percent
Construction prices in Lithuania jumped by 9.8 percent in July compared with the same period a year ago. Year-on-year, residential construction prices rose by 10.7 percent, non-residential construction by 8.9 percent, and engineering structures by 10.3 percent. Overall construction prices went up by 1.3 percent in July from June.
Month-on-month, wages and overhead costs increased by 2.2 percent and prices for construction materials and products were up 0.8 percent, which had the biggest impact on the construction price index. The per-hour cost of construction equipment operation grew by 0.8 percent over the month.
Kauno Diena, Lietuvos Zinios, Respublika
City Service buys building maintenance firm in St. Petersburg
City Service, a property maintenance and development subsidiary of Lithuania's Rubicon Group, has bought an apartment block maintenance company in Russia's second city of St. Petersburg at auction for LTL 660,000. The Repairs and Building Company in St. Petersburg services apartment blocks with a total area of over 400,000 m2.
"We are entering the apartment building maintenance market in Europe's fourth-biggest city. This acquisition will lay the foundation for further expansion of our business in Russia," City Service CEO Zilvinas Lapinskas said.
He added that the company targets a 15-20 percent share of St. Petersburg's apartment block maintenance market. The total area of the city's apartment buildings is 60 million m2. In Lithuania, it services 5.2 million square meters of buildings.
Kauno Diena, Lietuvos Rytas, Verslo Zinios
DFDS Lisco profit grows
DFDS Lisco, the sole Lithuania's ferry operator controlled by Denmark's DFDS, saw the turnover to rose by 14 percent, to LTL 124 million in January-June. In the light of interim results and business environment, the company has revised its full-year profit forecasts up to LTL 27-30 million, from previously projected LTL 23-25 million.
The company sees its profit moving higher on the back of suspension of loss-making operations on the railcar ferry line Klaipeda-Sassnitz/Mukran. Moreover, the interim results include the one-off gains on the sale of two vessels and one line.
Wednesday, 30th of August
Lithuanian GDP grows 8.4 percent
Lithuania's gross domestic product grew by 8.4 percent year-on-year in the second quarter of this year to reach LTL 20.481 billion. GDP per capita in April-June rose to LTL 6,018, from LTL 5,166 a year earlier. The second-quarter GDP and GDP growth figures were revised up from previous estimates of LTL 20.281 billion and 7.7 percent, respectively. The previous GDP per capita estimate was LTL 5,959. The strongest year-on-year growth was recorded in the construction sector, 17.4 percent, according to the latest estimate. The Lithuanian economy grew by 7.5 percent last year, while GDP per capita increased by 8.1 percent to LTL 20,819.
Kauno Diena, Lietuvos Zinios, Lietuvos Rytas, Verslo Zinios
Latvian milk driving local milk out of Lithuanian market
Latvian drinking milk imports into Lithuania in the first half of this year exceeded sales of locally produced milk. Latvian dairy producers held a 91.8 percent share of Lithuania's milk imports from EU countries in January-June. Lithuania imported 43,460 tons of drinking milk from Latvia in the six months, almost a six-fold increase on the same time last year. Meanwhile, drinking milk sales by local producers in the Lithuanian market more than doubled to reach 39,680 tons.
Lietuvos Zinios, Verslo Zinios
Axis Industries set to enter Romanian market
The Lithuanian industrial and energy projects company Axis Industries is gearing up to enter the Romanian market in the near future as part of its expansion plans. The company said it would supply heat metering devices, and equipment and complex decisions for biofuel boiler rooms to Romania and offer heating points modernization services in that country.
The company is also looking to enter the Czech and Bulgarian markets in the near future. According to the company's estimates, exports accounted for more than one-third of its total sales last year.
Tuesday, 29th of August
Average salary in Lithuania up 14 percent
Average monthly gross earnings in Lithuania rose by 14.1 percent in the second quarter of this year from a year earlier to reach LTL 1,519.7. Year-on-year, gross earnings in the public sector increased by 13.7 percent to LTL 1,585, while earnings in the private sector jumped by 14.9 percent to LTL 1,478.1.
Net monthly earnings in the entire economy, except sole proprietorships, rose by 12.7 percent to LTL 1,072.5. Net earnings in the public sector grew by 12.3 percent to LTL 1,114.3, while those in the private sector went up by 13.3 percent to LTL 1,045.9.
Real wages in the entire economy grew by 8.8 percent from a year earlier. The growth rates were 8.4 percent in the public sector and 9.4 percent in the private sector.
Kauno Diena, Lietuvos Zinios, Respublika, Verslo Zinios
Snaige posts losses
Snaige, the only household refrigerator manufacturer in the Baltics, posted consolidated net losses of LTL 984,200 for the first half of this year amid difficulties in the Russian market. Operating losses for the first half reached LTL 2.845 million, compared with operating profits of LTL 6.761 million a year earlier. The company forecast earlier a pretax profit of around LTL 4 million for the full year 2006, on sales of LTL 351.4 million.
Hansabankas, Nordea to loan LTL 131.6 million for residential project
Hansabankas and Nordea Bank Lietuva will extend a syndicated loan of LTL 131.6 million to Gabijos Investicijos, a subsidiary of the Ranga Group, for a residential development in Vilnius.
"There is still a shortage of quality housing in Vilnius. Therefore, we are contributing to financing the development of a new residential quarter with a good growth potential," Linas Paltanavicius, head of Hansabankas' Corporate Banking Division, said in a statement.
Monday, 28th of August
KPC ice-cream group boosts Jan-Jul sales to LTL 64.5 million
Kauno Pieno Centras (KPC), the largest ice-cream production and distribution group in the Baltics, said its consolidated sales for the first seven months of this year rose by 10.3 percent from a year earlier to LTL 64.5 million. In July the group's sales jumped by 15 percent year-on-year to hit a record high of LTL 14.9 million. KPC is targeting a million litas in profits on sales of LTL 100 million for the full year 2006.
East Capital pulls out of Vilniaus Vingis
The Swedish investment company East Capital Asset Management has divested its 15.74 percent stake in the Lithuanian TV deflection yoke manufacturer Vilniaus Vingis.
Apparently, East Capital Asset Management sold the shares in Vilniaus Vingis through several block deals earlier this week. A 5.28 percent stake in the electronics firm changed hands for a total of LTL 2.506 million on Tuesday, and another 10.57 percent for LTL 5.013 million on Wednesday.
Vilniaus Vingis posted consolidated losses of LTL 9.09 million for the first half of this year, up from losses of LTL 1.468 million a year earlier. Sales for January-June fell by 27.2 percent to LTL 33.67 million.
Verslo Zinios, Lietuvos Zinios
'Litexpo joins Global Association of Exhibition Industry first among Baltic colleagues
Lithuania's exhibition centre Litexpo has become the first among Baltic colleagues to become a member of UFI, the global association of exhibition industry. Litexpo has been admitted as UFI member in both exhibition organizer and exhibition centre categories.
"Litexpo has been recognized as a modern global exhibition centre and experienced exhibition organizer. As a member of global association, we will boost the notoriety of our exhibitions at the international scale," Aloyzdas Tarvydas, the centre director, said.
Moreover, UFI has issued recognition and approval status to the construction and repairs exhibition Resta organized by Litexpo.
Lietuvos Zinios, Verslo Zinios
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