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Lithuania Business News: Archive 2003-

WEEK 16.2007

Saturday, 21st of April

Svyturio-Utenos Alus wins an award
According to the data of the public opinion and market research company Spinter Tyrimai, Lithuanians trust Svyturio-Uteno Alus company the most. The biggest beer and other drinks producer in Lithuania received the best image award. Rolandas Virsilas, CEO of Svyturio-Utenos Alus, said that it was good that people evaluated the company’s personnel attempts and the award was very important for the company. Svyturio-Utenos Alus is one of the biggest sports and basketball’s sponsors, it provided LTL 14 million for charity this year. The smallest wage in the company is twice bigger than the smallest wage, which is set by the government. The company pays various social benefits for its employees. Svyturio-Utenos Alus received LTL 421 million revenue in 2006,which is 19 percent more than in 2005. The company’s turnover made LTL 353 million. The company produced 176.5 litres of different drinks and exported 8.3 million out of it last year.
Kauno Diena, Lietuvos Rytas

Stock rates in Vilnius Stock Market
The Vilnius Stock Market general turnover reached LTL 7.54 million, the number of transactions was 767 and ratio of the most expensive positions was 20 to 7 yesterday. TEO LT distinguished by its biggest stocks’ turnover – their price fell by 0.74 percent to LTL 2.7, the turnover reached LTL 3.78 million. Ukio Bankas stock increased by 1.69 percent to LTL 4.22. Invalda stocks were on the third place, their price went up by 1.43 percent to LTL 14.15, and the turnover was LTL 525 thousand. These three stocks made up 81 percent of the whole market turnover.
Lietuvos Zinios

Employees complain
The employees working in the company Vilniaus Vingio Geba, controlled by Vilniaus Vingis, do not agree with the conditions while firing them from work. Moreover, these employees state that all the equipment is being destroyed; while the heads of Vilniaus Vingis claim that the employees do not know to which company their work tools belong. Also, the employees of Vilniaus Vingio Geba blame its CEO for false statements that their wages are LTL 1,200 per month. People say that such numbers are too big and the wages most of the employees receive are minimal. The employees request that while firing them from work, the heads would follow the laws and it would be done according to the staff cut. LTL 3.6 million of redundancy pays were paid to Vilniaus Vingis and Vilniaus Vingio Geba employees in 2006, LTL 0.5 million is already paid this year.

Friday, 20th of April

FlyLAL presents new planes
FlyLAL-Lithuanian Airlines, which plans to add three new Boeing planes to its fleet this year, expects to place the first of the new aircraft into service in June. The second aircraft should be put into service in August and the third in October. FlyLAL-Lithuanian Airlines currently has four Boeing 737-500's and four Saab 2000 aircraft. FlyLAL will also offer new flights to Hamburg, Hanover and Tallinn this season. According to the company it plans to carry 100,000 passengers during summer.
Verslo Zinios, Lietuvos Rytas

Maxima’s new contract
Russian seafood and frozen food supplier Ledovo Group has signed a contract to supply its products to Maxima, the largest retail chain in the Baltics.
Ledovo said it would supply 15 tons of seafood products under the Salmon brand to Maxima stores monthly. It did not disclose the value of the contract. Lithuania will be Ledovo's first export market in the European Union. Lietuvos Rytas

Hansabankas increases its interest
Hansabankas increases its interest for time deposits in litas. The interests grow by 0.25 percent depending on the period of the deposit. The interests are raised the second time this year. If a client puts a time deposit for one year starting today, 3.3 percent of annual interest and the deposit amount will be paid at the end of the period. There were LTL 3 billion of time deposits of private persons in the bank in March.
Verslo Zinios

Thursday, 19th of April

Pieno Zvaigzde distributes shares
Pieno Zvaigzdes, the dairy producer, is planning to distribute a part of its income to buy its shares. LTL 3 million will be transferred into reserve due to this. The dairy producer posted a net profit of LTL 18.492 million last year, up 20.9 percent from LTL 15.3 million the previous year. It intends to distribute LTL 10.779 million or LTL 0.2 per share, in dividends to shareholders for 2006.

Inflation rate
The Statistics Department announced that it forecasts 0.6 percent inflation in April. The same rate of inflation was registered in March. However, some specialists claim that the inflation should slightly decrease this month. Rimantas Rudzkis, analyst in DnB NORD bank, forecasts 0.5-percent inflation in April. Specialists claim that the inflation should decrease due to unfavourable surprises in global market.
Verslo Zinios

Gubernija returns into the market
Gubernija was struck by a lightning last week, when it had to stop production. The cause of such thing was huge debts. Yesterday, it started brewing beer, when the company’s stocks went up in the stock market. Romas Bubnelis, the head of Gubernija, said that it would take a long time to get on its feet again. The company’s production was stopped for a week, because the suppliers suspended the supply. Gubernija did not have any turnover resources to pay the debts. Bubnelis wanted to resign on April 11, however the board denied his application. Bubnelis claimed that the company’s condition was very poor.
Lietuvos Rytas

Wednesday, 18th of April

Vilnius Vingis stops production
Lithuanian TV deflection yoke manufacturer Vilniaus Vingis may stop production operations in the coming days due to a lack of orders.
The company's management board is expected to take a decision to cease operations early next week. Vilniaus Vingis CEO Neringa Menciuniene said that the company will have to halt production on Wednesday unless Samsung, its only remaining buyer, places new orders on Tuesday.
"We have fulfilled the order we had and have no more orders. But if we receive some orders today, we will continue to work. Samsung is an unpredictable customer. It changes orders several times a week," she said.
Orders from the other customer, Thomson, stopped coming about a month and a half ago. Vilniaus Vingis' deflection yoke production subsidiary Vilniaus Vingio Geba currently employs about 160 people.
Lietuvos Zinios, Lietuvos Rytas

Akmenes Cementas revenues grow
Lithuania's only cement manufacturer Akmenes Cementas reported LTL 32.217 million in sales revenue for the first quarter of this year, a rise of 68 percent from a year earlier. Revenue for March soared by 73.9 percent year-on-year to LTL 11.2 million. "Sales are on the rise, as growth in the construction sector boosts demand for cement, particularly in Lithuania," Akmenes Cementas CEO Arturas Zaremba said. Lietuvos Rytas, Lietuvos Zinios

Gubernija resumes production
Gubernija, a major Lithuanian beer producer, said on Tuesday that it expects to resume beer production at full capacity by May 1.
Gubernija stopped producing beer earlier this month after company Durpe had halted malt supplies to the brewer over its debts amounting to LTL 1.5 million Other suppliers have suspended raw material supplies as well. Gubernija also said that none of its creditors has filed a bankruptcy petition to the court.

Tuesday, 17th of April

Russia promises to resume oil supply
The Russian parliamentarians who are now visiting Vilnius are promising that the supply of oil by pipeline Druzhba will be resumed. This information was given to the media by the head of the Russian parliamentary delegation, member of the Energy Committee Viktor Opekunov. He denied the media's statements that the Druzhba pipeline would be closed in favour of a sea route through the port of Primorsk near St. Petersburg for oil exports. The branch of the Druzhba pipeline ceased to supply oil to the Mazeikiai Oil Company as of last July.
Lietuvos Rytas, Lietuvos Zinios, Kauno Diena

IKI raises its sales
Lithuania's second-biggest grocery chain IKI said its first-quarter sales in Lithuania and Latvia rose by 35 percent year-on-year to LTL 484 million.
Iki expects to achieve annual sales of over LTL 2 billion this year, after posting a 25 percent rise in sales to LTL 1.7 billion last year. The chain opened 46 new stores in the two countries last year and had 200 stores in February this year.
Lietuvos Rytas

Invalda plans to distribute dividents
Lithuanian investment group Invalda, which has holdings in several tens of local and foreign companies, intends to distribute LTL 11.2 million in dividends to shareholders for 2006, or LTL 0.25 per share, and plans to buy back some of its shares.
The shareholders will also be asked to set aside LTL 34.5 million for a share buyback program aimed at increasing the company's share price.
The management board believes that dividend payment and share price raise will be profitable to its shareholders.
Lietuvos Zinios

Monday, 16th of April

Mazeikiu Nafta profits decrease
Lithuanian oil refinery Mazeikiu Nafta, which is majority owned by Poland's PKN Orlen, will not pay any dividends to shareholders for 2006, reliable sources said. The company did not pay any dividends for 2005 either. Mazeikiu Nafta posted LTL 192.058 million in consolidated net profits last year, down from LTL 887.764 million the previous year.
The company said that it suffered around LTL 130 million in damage as a result of a fire last October. Also, the refinery stopped receiving Russian crude by pipeline last summer, making it reliant on more expensive crude deliveries by sea.
Lietuvos Zinios

Euro Loto sales go down
Euro Loto, a Vilnius-based company, has been licensed to operate national lotteries in Lithuania. The State Gambling Supervisory Commission (SGCC) issued the license to Euro Loto on Friday, bringing to seven the number of companies holding such licenses.
The SGCC administration director, Andrius Karaliunas, has said that Euro Loto is owned by two private individuals and a local company that is not engaged in the gaming business. Euro Loto was registered with the Register of Legal Entities in February this year.
The other six holders of licenses to operate national lotteries in Lithuania are Olifeja, Zalgirio Loto, Fortuna Baltica, Televizijos Loterijos, Garsuva and Winloto.
Lithuanian lottery ticket sales totaled LTL 85.56 million last year, down 10.5 percent compared with the previous year. The number of tickets sold fell by 7.8 percent to 46.18 million units.
Verslo Zinios

Maxima LT sales raise
Maxima LT, the largest retailer in the Baltics, said its first-quarter sales in Lithuania, Latvia, Estonia, Romania and Bulgaria rose by 27.4 percent year-on-year to LTL 1.726 billion. The company earlier reported sales of LTL 6.27 billion for the full year 2006, a rise of 20.8 percent on the previous year.
This year, it targets a 20 percent growth in annual sales and plans to open about 90 new stores in the five countries.
Maxima LT currently operates 204 stores in Lithuania, 111 in Latvia, 36 in Estonia, 16 in Bulgaria and nine in Romania.
Verslo Zinios

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