Zelmer finally breaks into profit, privatization in 2004

Rzeszow-based white-goods producer Zelmer recorded a zl. 6.7 million profit in 2002, a year before it made a loss of zl. 18 million. Company president Andrzej Libold, who started restructuring Zelmer in late 2001, predicts that the company should be able to double its profits in 2003. "Last year's result would have been substantially better, but we were forced to create a zl. 3.3 million reserve for outstanding loans. However, due to the small chances of an upturn in the economy, our sector will be characterized by declining sales, which in turn could mean a fierce price war is possible," added Libold. Despite the fact that Zelmer's revenues dropped by 15% in comparison to 2001, it managed to record profits and cut operating costs by 17%, which meant they could avoid lay-offs. The company is scheduled for privatization in 2004. (Puls Biznesu, pp. 1, 3) M.M.