Amica issues profit warning following slump in sales

Amica projects that 2005 will see no boom on the white goods market. "The 2005 forecast, which was prepared at the end of 2004, envisaged a 3% increase in sales as compared to 2004. However, in reality, between January and August the sales rate dropped by nearly 10%, and Q3 did not bring the expected revival," explained Amica in a press release. The company expects that over the next few months the sales rate will continue to fall. Amica's low turnover is also the result of a very poor financial situation of its largest client, the Mars retail network. "In spite of a considerable increase of exports, the influence of domestic factors forced Amica to verify its financial expectations for this year," concluded the announcement. Last year, the company's sales amounted to zl.1.21 billion, and it posted a net profit of zl.40 million, while H1 2005 brought a net loss of zl.350,000. (Parkiet, Oct. 8-9, p. 3) A.F.