Ljubljana, 20 November (STA) - Chemical company Cinkarna Celje generated a net profit of EUR 15.9 million by the end of the third quarter. Although 91% above plans, the figure was also 43% lower year-on-year. Net revenue stood at EUR 134.8 million, 1% more than in the same period the previous year.
"The management believes that the business results are very good in objective terms," says a business report published on Wednesday, which also notes that the company expected to see a net profit of EUR 8.3 million for the first nine months.
Last year, the company posted a record profit of EUR 30.6 million and by the end of the third quarter, profit had already soared to EUR 27.9 million.
Operating profit dropped by 44% over the same period last year to EUR 18.7 million. Exports reached EUR 119.4 million, 3% more than in the first three quarters of last year.
Cinkarna had no financial debt and recorded a total of EUR 27.7 million in deposits, which was 20% less than at the end of September 2018 and 17% less than at the end of 2018.
Its main product is titanium dioxide pigment, whose price has been falling in Europe and Asia due to the US-China trade wars, the company says in the report.
Protectionist measures by the US allow US producers to set higher prices, thus the price of the pigment on the US market has grown by about 5%. As a result, Chinese-made pigment is uncompetitive in the US and is therefore channelled to the European markets, pushing down prices.