BorsodChem increase revenues but profits are down

The company's operating profit rose by 42% to surpass HUF 16 billion. However, its net profit was HUF 14 billion (zł.232.4 million), 18.2% lower than in 2004. The main reason behind the slump was a lower profit from hedging contracts. The management of BorsodChem projects increasing the value of sales in 2006 by increasing its production capacity. The company is currently in the process of implementing its three-year development program that encompasses investments in machinery as well as acquisitions. "The negative effects of rising operating costs in the chemical sector can only be compensated by steady growth, through constant improvement of the product portfolio as well as rigorous cost control," explained Laszlo F. Kovacs, BorsodChem general director. (Parkiet, 18-19 February, p. 5) D.W.