Poland's Ciech cuts Q1 losses by 70%, looks to restart privatisation

17 May 2010 17:14  [Source: ICIS news]

PRAGUE (ICIS news)--Ciech cut its first quarter net loss year on year by 70% to (Zl) 3.1m ($960.000, €777,000) as cost-cutting measures aimed at getting it in shape for restarting its privatisation began to pay off, Poland's largest chemicals maker said on Monday.

Group revenues slid 3% to Zl962m, with the company's organic division overtaking its soda ash business as the most important revenue contributor following improvements in toluene di-isocyanate (TDI) and epoxy resin sales, it added.

"With economies and our key markets (automotive, construction and pharmaceutical) gradually improving [following the downturn], demand for chemical products is generally growing slowly but there is still downward pressure on prices. But our performance in the quarter was slightly better than market expectations,“ Ciech said in a commentary on its results.

If the improvement in the company's financial results could be maintained through the second quarter, hopes would rise that Ciech could see its privatisation process resumed by the end of this year, it added.

The sell-off was postponed earlier this year by the treasury ministry which said the privatisation could not proceed until Ciech reached an agreement on restructuring its major debts with a group of banks.

A deal with the banks has since been reached, but it requires Ciech to pay down its debts by at least Zl400m before the end of March 2011.

($1 = Zl 3.24, €1 = Zl4.01)

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By: Will Conroy
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