Polcolorit's plans to boost production and double profit fail to impress

"We should begin the works once the snow melts, which should be in a few days," said Paweł Puterko, management board advisor of Polcolorit. Puterko went on to say that the plant should be operating by the end of the year and production capacity of the company will increase from 4.5 million sqm to 13.5 million sqm of tiles annually. Polcolorit will also manufacture granulate for the production of tiles, which should lower costs. Thanks to these investments, company's profits will increase twofold to zł.33 million by 2006. Despite this the firm's shares continue to plummet. Michał Buczyński, analyst with DM Millennium, suggested that the reason for this is the fact that investors envisage deteriorating results of the company in H1 due to falling demand. (Puls Biznesu, p. 11) M.M.