Budimex capital group posts dismal 2004 results

The property developer and construction group's 2004 revenues were zł.2.16 billion, only 0.64% higher than in 2003, mainly due to the fact that the company posted zł.9.98 million net loss and a zł.107.4 million operational loss in Q4 2004. In 2003 the loss for an analogous period was lower, zł.7.1 million and zł.5.1 million respectively. Budimex's results are poor, mainly because last year entities making up the group earmarked zł.132.1 million for reserves in case of losses connected with construction contracts. The strengthening of the złoty against the euro also negatively influenced the results, due to lower margins and more expensive materials. The construction branch of Budimex posted a zł.119.5 million operational loss in 2004, against a profit of zł.70.9 million in 2003. Once the figures were made public yesterday, firm's standing on the stock exchange fell by only 2%, to zł.50.(Parkiet, p. 7; Puls Biznesu, p. 10) D.W.