Hard times ahead for trailers

In Q3 of 2008 Wielton, Poland's leading producer of trailers and one of the top 10 trailer producers in Europe, saw zł.101.4 million in revenues (a growth of 2.8 percent y/y) and zł.10.1 million in net profit (a decrease of 27.4 percent y/y).

The Q1-Q3 period brought the firm zł.316.6 million in net revenues and zł.46.5 million in net profit. Thus, Wielton managed to meet only 81 and 93 percent of its forecasts for the period, respectively.

The strengthening złoty to euro and lowered demand for trailers in Europe were the key reasons for lower results, the company explained. "Our clients found it difficult to find sources of financing their new investments, and had to postpone them," said Wielton's president, Włodzimierz Masłowski.

The crisis also resulted in increased demand for the company's cheaper products, bringing smaller margins.

Following the international crisis, the firm implemented a restructuring plan at the end of October. It includes increasing automation of production and laying off 200 employees by the end of January.

"The slowdown is only temporary," President Masłowski stressed, adding that the company's target markets in the CEE region have strong potential for growth.

Despite the unfavorable period, the company has extended its share in the market from nine to 11 percent between Q2 and Q3, Masłowski added.