Barlinek likely to issue profit warning following poor Q3

The company's representatives' expectations revealed in August stated, that the group's revenues were to increase by 30% over the course of the year to zł.309 million and the net profit was expected to rise by 28% to reach zł.33.3 million. While the company's Q1 results were satisfactory and in line with the projections, Q3 threw a spanner in the works. Barlinek's revenues in that period continued to grow (by 34%), but its operational profit was zł.7.3 million and the net profit was zł.5.3 million, a 37% slump compared with the analogous period of 2004. To reach the projected 2005 results the company would have to earn over zł.13 million in Q4, four times more than it made in Q4 of 2004. Asked if it was possible, Mariusz Gromek, head of Barlinek's supervisory board, said that "When it comes to revenues, we are most likely to fulfill our projections as we immediately sell whatever quantities we produce. However, when it comes to net profit we might have to correct the projections due to an unfavorable Euro exchange." Some 75% of Barlinek's production is sold on foreign markets. (Parkiet, p. 3) D.W.