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Lithuania Business News: Archive 2003-

WEEK 45.2007

Saturday, 10th of November

DnB Nord rises
The assets of DnB Nord, the third largest Lithuania's commercial bank, rose by 34.8 percent over the first ten months of this year, to cross the LTL 10 billion threshold for the first time in the bank's history. Compared with early 2006, the assets of the bank surged twofold, DnB Nord said in a statement.
Kauno Diena, Respublika

Producers join Maxima
Nineteen Lithuanian producers and suppliers refused any intentions to raise prices for products. Maxima LT announces such news after one week negotiations with its suppliers. The biggest bread producers have also to joined Maxima's campaign, while the producers of meat also decided not to increase prices until the New Year. Company such as Arvi Kalakutai (Arvi Turkeys) has decreased the prices for its products by 5 percent.
Kauno Diena, Respublika

Awards for Lithuanian companies
Business Day has been celebrated in Lithuania for the third year in Lithuania, the Ministry of Economy decided to commemorate the day while awarding the most successful Lithuanian companies. The Prime Minister Gediminas Kirkilas noted that there are more and more companies in Lithuania, which could be awarded every year. The Ministry arranged various nominations for the companies. Such as the award and medal for the youngest businessperson, or the award for the biggest merits for business and many more. Such companies like Svyturys-Utenos Alus, Rimi, Arvi Kalakutai, Orion Global Pet and etc. were presented for different nominations and were awarded with prices.
Lietuvos Zinios, Respublika, Kauno Diena

Friday, 9th of November

Alita reports its profit
Alita, the largest Lithuania's alcohol producer, reported LTL 6.507 million in unaudited consolidated net profit for the first nine months of 2007, a decline of 19 percent versus the year-earlier figure. The consolidated sales, however, rose by 40 percent, year-on-year, to LTL 128.089 million, the company said in a statement. Darius Vezelis, Alita's marketing and sales director, attributed the decline in earnings to growing labor costs, investments into expansion, including acquisitions, as well as active development of exports.

Snoras bank reports profit
Lithuanian bank Snoras reported LTL 46.2 million in unaudited net profit for the first ten months of this year. In October alone, the net profit shrank by 8.9 percent, year-on-year, to LTL 10.2 million, or 22 percent of ten-month profit.

SAS reduces numbers of flights to Palanga airport
Scandinavian carrier SAS will not reduce the number of flights from Copenhagen to Lithuania's seaside resort of Palanga. In December the carrier will offer twice daily flights on the Palanga-Copenhagen route, in line with its winter flights schedule. SAS earlier decided to stop using its Bombardier Dash 8 Q400 planes after three crash landings in six weeks, which resulted in a one-day call-off of flights to Palanga.
Lietuvos Rytas

Thursday, 8th of November

Unemployment rate in Lithuania
The unemployment rate, as estimated under the new methodology adopted by the Labor Exchange, made up 4.2 percent in Lithuania early in October.
The new methodology prescribes the calculation of jobless rate as a percentage share of persons registered with the Labor Exchange in the number of economically active population. The jobless rate published for August and September reached 2.8 percent. However, the figures are not comparable to that of October as a result of change in methodology, the Labor Exchange representatives have explained. The exchange put the number of job seekers at more than 89,700 as of October, down 1.6 percent versus September and a decline of 8.6 percent from the year-earlier.
Lietuvos Rytas, Verslo Zinios, Respublika

Zemaitijos Pienas posts numbers
Zemaitijos Pienas, one of Lithuania's largest dairy groups, posted LTL 18.7 million in consolidated unaudited net profit for the first nine months of this year as the consolidated sales rose by 21 percent, year-on-year, to LTL 342.5 million.
The company attributed the rise in profit to favorable prices of skim milk powder and cream on exports markets. It did not provide the comparative figures for the respective period of 2006, however.

Microlink sells its data communication business to Norby Telecom
Lithuanian information technology and telecommunication company Microlink Lietuva has sold its data communication business to the international company Norby Telecom for an undisclosed amount. With the transaction complete, Microlink Lietuva would focus on data storage hosting and data centre business, while Norby Telecom would take over the rendering of services to Metro Internet subscribers and MetroTel landline customers, Microlink Lietuva said in a statement. From now on, Norby Telecom will operate the Metro-trademark optical data networks in Lithuania and Estonia, which would be merged into a common infrastructure together with a respective data communication network in Latvia.
Lietuvos Rytas, Verslo Zinios

Wednesday, 7th of November

Lietuva Statoil begins selling bio ethanol E85 in Lithuania
Lietuva Statoil, the second largest Lithuania's gasoline retailer, has kicked off trade in bio ethanol E85. Lithuania was among the first countries to launch trade in gasoline with biological additives. Bio ethanol E85 may only be used in cars with engines specially adapted to this type of fuel. Starting from Tuesday, bio ethanol E85 will only be available in Lithuania at a sole gas station in Vilnius. Across the Baltic countries, bio ethanol is also available at two stations in Estonia and one in Latvia. Lietuvos Rytas, Verslo Zinios

Maxima withdraws from the code of good business
Maxima LT, the operator of the largest Lithuania's retail chain, has decided to withdraw from the code of good business practice for retail chains. The code banned retail chains to sell goods at lower prices, Maxima LT explained. The code was signed late in March with the aim to ensure that retailers offered fair prices and had no chance to use the forthcoming introduction of euro as a pretext to raise prices. The code of good business practice signed by Lithuanian association of trade companies restricted the possibilities of retail chains to negotiate prices and gave a chance for suppliers to boost prices in summer and fall, Gintaras Marcinkevicius, Maxima LT CEO, pointed out.” In our opinion, the essential reason behind the rise in prices of those goods is the artificial decline of competition," he said. A prohibition for all retail chains to purchase goods at lower prices had an inevitable effect on the rise of consumer prices and the leap in inflation in Lithuania, Marcinkevicius noted. Having withdrawn from the code, Maxima LT reportedly aims to invite the suppliers to renegotiate the prices, as the retailer will seek to reduce the prices of goods.
Kauno Diena, Lietuvos Rytas, Respublika, Verslo Zinios

Vagos Prekyba reports figures
Vagos Prekyba, the operator of the largest Lithuania's bookstore chain, reported LTL 13 million in revenues for the first nine months of this year, a surge of 31 percent. In September alone the sales reached LTL 2.5 million. The company opened five new bookstores in Vilnius, Siauliai, Panevezys, Joniskis and Taurage in January-September and intends to set up one more outlet in Siauliai by the end of the year. Vagos Prekyba currently runs a chain of 30 bookstores.
Verslo Zinios

Tuesday, 6th of November

Elkem enters Lithuania
Norway's aluminium producer Elkem is mulling the construction of some LTL 800 million worth cathodes plant in Klaipeda or Kedainiai, West Lithuania.
Prime Minister Gediminas Kirkilas discussed the plans of the company with its representatives on Monday, the government's press service reported. Legal and economic conditions in Lithuania were favorable for the building of Elkem's plant, Kirkilas said. Meanwhile, Elkem has not yet taken a final decision concerning the site of the new plant. Norway's company would implement investments into the new plant in two stages, the second of which would be launched in about 5 years after the launch of construction.
Respublika, Verslo Zinios

Lithuanian companies among the European ones
As many as 23 Lithuania's companies have been entered into the list of 500 European SMEs with the highest growth rate and the number of jobs created in 2003-2006.
Latvia and Estonia are represented by five and two companies, respectively, the website of Europe's 500 listing ( has shown. Textiles company Korelita ranks the 28th in the listing, the highest among Lithuania's companies. The top 100 also includes the fish company Salu Zuvys (50th), Teltonika (73rd) and Viciunai Ir Partneriai (78th). Two companies made it into the second top one hundred - Artilux Baltija (161st) and Danbalt International (163rd). Five companies appeared in the 201 to 300 ranking, nine - in the 301 to 400 ranking, and five in the 401 to 500 ranking. The list of participants aspiring to enter the listing showed companies from the European Union (EU), Switzerland, Norway and Iceland. Last year Lithuania was represented in the ranking by four companies. Europe's 500 ranking of fastest growing companies has been compiled each year since 1996.
Kauno Diena

Commercial Union Lietuva Gyvybes Draudimas will be renamed
Lithuania's life and pension insurer Commercial Union Lietuva Gyvybes Draudimas (Commercial Union Lithuania Life Insurance), part of UK Aviva insurance group, will be renamed Aviva Lietuva. Commercial Union Polska, the sole shareholder of the Lithuanian company, approved the measure on September 3, Commercial Union Lietuva Gyvybes Draudimas said in an announcement. Commercial Union Lietuva Gyvybes Draudimas reported LTL 3.4 million in profit for the first half of 2007, a surge of 4.3 times versus the year-earlier figure of LTL 790,000.
Lietuvos Rytas

Monday, 5th of November
Siauliu bank posts its net profit
Lithuania's fast-growing Siauliu Bankas and its subsidiaries posted LTL 22.8 million in consolidated net profits for the first nine months of this year, of which net profit attributable to the bank's shareholders was LTL 20.87million. Year-on-year, the group's net profits for January-September declined by 42.8 percent, Siauliu Bankas reported on Wednesday. The group's net profit attributable to the bank's shareholders increased by 1.5 percent this year, from LTL 20.57 million in January-September 2006.
Verslo Zinios

Ukio bank posts net profit
Lithuania's Ukio Bankas Group posted LTL 61.5 million in consolidated unaudited net profits for the first nine months of 2007. The net earnings of leasing companies of the group made up LTL 0.7 million, while the combined losses of other companies totaled LTL 7.5 million in the reporting period. The assets of the group rose by 33 percent over nine months, to reach LTL 4.25 billion as of late September. The deposits and L/C portfolio expanded by 30 percent, to LTL 2.75 billion.
Verslo Zinios

Comparison of prices
The highest prices for butter and beef were recorded in Lithuania last month, while the prices for sugar, vodka, bread and poultry were the cheapest in the Baltic States. One kilogram of sugar cost EUR 0.91 in Lithuania, EUR 1.08 in Latvia and EUR 0.98 in Estonia. The prices for beef varied too, for example one kilogram of beef cost EUR 3.60 in Lithuania, EUR 3.24 in Latvia and EUR 3.04 in Estonia.
Verslo Zinios

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