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Lithuania Business News: Archive 2003-

WEEK 34.2007

Saturday, 25th of August

Eta Bankas increases the number of clients
The number of Eta Bankas, Ukio Bank e-banking system, users increased by 54.4 percent up to 37.4 thousand of clients during the seven months of this year. While the number of e-banking system users reached 24.2 thousand in 2006. The Bank plans to make more financial operations on internet in future. The majority of charges for operations via Eta Bankas are smaller than in bank’s subsidiaries or offices. Respublika

Lithuanian poultries suffer losses
The biggest poultry company Vilnius Paukstynas, controlled by the company Kauno Grudai, has suffered losses again. More than 11.4 thousand of chickens died this summer in Vilnius Paukstynas. It is already not the first case in this poultry company this summer. It is said that chickens died due to hyperthermia, the air temperature was too high for the birds and the ventilation system did not assure the optimal temperature in the factory. Approximately, 30 thousand of chickens died in four Lithuanian poultry companies this summer due to poor ventilation system. The chickens began dieing after the temperature reached over 30 degrees of Celsius. The inspectors have also claimed that the problem might have been caused by the fact that there were too many chickens kept in one place.
Lietuvos Rytas

Negotiations with Russia to be started
The Prime Minister Gediminas Kirkilas has recalled Petras Vaitiekunas, Minister of Foreign Affairs, from his holidays. Kirkilas delegated Vaitiekunas to begin the negotiations for natural gas prices with Russia. Kirkilas encourages the negotiations to be started as soon as possible, as according to the preliminary data, Russia intends to increase the gas prices for Lithuania. The Prime Minister mentioned that Russia might impose such gas prices for Lithuania as there are in Germany. Kirkilas said that Russia might increase prices for gas, also because the new candidate for the director of the State Price and Energy Commission is not yet clear. Kirkilas and the President Valdas Adamkus had not yet agreed for the right candidate for the position of the director of the Commission.
Respublika, Lietuvos Rytas, Kauno Diena

Friday, 24th of August

Sanitas earns LTL 21.6 million
The pharmacy company Sanitas has earned LTL 21.6 million of consolidated net profit during the seven months of this year. Last year the company suffered LTL 3.739 million of losses at the sae period. The company had LTL 0.427 million of losses this July due to planned holidays in advance and planned construction works. The consolidated sales of Sanitas stood at LTL 194.986 million during the seven months; it is by 3.5 times more than last year at the same time.
Verslo Zinios, Respublika

Insurance companies present numbers
Insurance companies signed the insurance agreements worth LTL 1.09 billion during seven months of this year; it is by 39.3 percent more than lat year at the same time. There were non-life insurance contracts signed worth LTL 731.9 million it is by 26.3 percent more than in 2006. Insurance companies signed by 76.4 percent more life insurance contracts during mentioned period comparing it with last year. There were by 13.9 insurance agreements signed during the seven months of this year.
Verslo Zinios, Lietuvos Rytas

Lithuanian Post’ losses
Lithuanian Post, which is controlled by the State, has suffered LTL 7 million of losses this half year; it is by 2.3 times more than last year during the mentioned period. The Post, however, hopes to cover the losses during the third quarter o the year. The turnover of Lithuanian Post increased by 5.4 percent and reached LTL 91.4 million during the mentioned period.
Lietuvos Rytas

Thursday, 23rd of August

Lithuanian airlines’ numbers
Lithuanian airlines carried 418.2 thousand of passengers during seven months of this year; it is by 7.3 percent more than last year during January and July. The biggest part of passengers (52.4 percent) was flying on regular flights during September and July of 2007, it is by 13.9 percent less than last year.
Lietuvos Rytas

Competition problem among airlines and travel agencies
The travel agencies are worried that the Latvian airline airBaltic sells their special campaigns’ tickets only on its website. The Association of Tourism Agencies in Latvia has addressed the Competition Department, however its’ complain was refused. Audrius Ramanauskas, director of Interneto Partneris and greitai.lt, says that it is not good when one airline offers cheaper tickets, as clients then are running away. airBaltic is misusing its possibilities as it sells the product cheaper while other agencies cannot influence the prices of tickets. Ramanauskas adds that they are competing for the same clients, although airBaltic still manages to attract almost all of them. Arkadijus Maizelis, board chairman in the travel agency West Express, says that such campaigns by the airline are not pleasant and it would be better if such campaigns could be joint.
Verslo Zinios

inRED presents numbers
The company’s inRED, which is controlled by Invalda group, turnover stood at LTL 54.5 million during the first half year, which is by 1.7 times more than last year at the same time. Tomas Bucas, director of the company, claims that the reached results show that the chosen strategy was right. He added that the company plans to invest only to projects with great value. In RED intends to reach LTL 96 million turnover this year. Last year the turnover stood at LTL 79.1 million.
Verslo Zinios

Wednesday, 22nd of August

MG Baltic Trade posts numbers
The holding MG Baltic Trade, which is controlled by MG Baltic, earned LTL 1.263 of net profit last year; it is by 10.8 percent more than in 2005. The net profit of the holding in 2005 reached LTL 1.14 million.
Lietuvos Rytas

Hansa Lizingas provides numbers
Hansa Lizingas was leading in terms of its factoring portfolio in the country during the first half year. Its portfolio stood at LTL 666.04 million. The factoring analysis was made for the first time in Lithuania. Factoring is the service of working capital financing. SEB Vilnius Bankas was on the second place, it covered 30.54 percent of factoring market in the country. While Ukio Bankas was the third and covered 10.09 percent of market.
Verslo Zinios

More loans for students
The State Education and Studies Fund will distribute LTL 31 million for students’ loans this year. It is by 9.8 percent more than last year. The Fund has given loans worth over LTL 127 million since 1998 for students. Stanislava Eugenija Lipinskiene, head of Loans Department in the Fund, says that students’ interest towards loans is rapidly growing each year. The first-year student come to the fund even before September 1 and fill the applications for loans.
Verslo Zinios

Tuesday, 21st of August

Ekranas selling the real estate and equipment
Creditors of Ekranas, Lithuania's bankrupt TV tube manufacturer, will try to sell the company's real estate and equipment through separate auctions in early September and expect to receive at least LTL 332 million for the assets. The auctions are scheduled for September 7. The starting price for Ekranas' real estate is set at LTL 118 million, and the price for the plant's equipment, which will be sold as a whole or as separate lots, is set at LTL 214 million. "The total selling price of the assets has increased after the company's creditors decided to sell the real estate and equipment as separate lots via separate auctions," Gintaras Gelcys, the CEO of Baklis, Ekranas' bankruptcy administrator, said.
Lietuvos Zinios, Lietuvos Rytas

Kotryna opens new store in Latvia
Lithuanian-owned children's product wholesaler and retailer Kotryna has opened a new store in Latvia. The company said it had invested LTL 176,000 in the 200-square-meter store, called Cipollino, which sells products for babies and children, as well as maternity products. Kotryna Marketing Director Stasys Petrauskas said the company had opened the new store in order to have a retail outlet in Riga's fast-growing Kapsala neighbourhood and in view of the chain's growing sales in the neighbouring market. Kotryna's Latvian retail operations generated sales of 2.9 million euros during the first half of this year.
Verslo Zinios, Lietuvos Rytas

Ecosupplies sets up a unit in Lithuania
Swedish office supplies company Ecosupplies is setting up a unit in Lithuania. The company is currently advertising for a manager responsible for the establishment of its Lithuanian office. Established in 2005, Ecosupplies supplies printer cartridges and other office products in four Western European countries. Povilas Levisauskas, a Lithuanian, sits on the Swedish company's board of directors.
Lietuvos Rytas

Monday, 20th of August

Dispute for the new nuclear power plant
Poles are not satisfied with Lithuanian stocks part in new nuclear power plant and they claim that they are still considering whether to participate in the construction works. While Poles are so confused about it, the number of candidates for the project is increasing. The disputes between the Baltic States and Poland might postpone the start date for construction of the new nuclear power plant. Estonia and Latvia are unsatisfied that Lithuania has invited Poland to participate in the project.
Verslo Zinios

French company sues with Kaunas
The French constructions company Bouygues Batiment International has appealed the court after Kaunas City Council decided to cancel the negotiations about the sports arena. French claim that Kaunas City Council’s decision was inadequate and untenable, and political causes were affecting it. Jean Francois Legrain, business development director for the Baltic States in Bouygues Batiment International, said that the aim of the company was to renew the negotiations and to continue the project. Verslo Zinios, Kauno Diena

The numbers of Olympic Entertainment Group
The net profit of the largest casino operator in the Baltic States Olympic Entertainment Group reached EEK 189 million this first half year; it grew by on fourth from last year’s the same period. The turnover stood at EEK 1 billion, by 43 percent more than last year. The casino operator plans to increase the turnover by 60 percent this year. The turnover of the casino increased by 39 percent in Estonia, by 31 percent in Latvia and by 20 percent in Lithuania. The operator controls over 80 casinos in the Baltic States, Ukraine, Belarus and Poland, it also develops the network in Romania.
Verslo Zinios

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