Gorenje’s profit dropped by 57% in 2008

According to the preliminary data, Slovenian manufacturer of household appliances, "Gorenje", registered net profit of 10.2m EUR in 2008, which is 57% less than in 2007, but the incomes grew by 3%, reaching 1.33 billion EUR.

The President of the Management of "Gorenje", Franjo Bobinac, said that the growth of incomes had resulted from the takeover of Dutch rival "ATAG Europe", while the drop in profit had been the consequence of the global financial and economic crisis. Bobinac pointed out that the biggest decrease in incomes (80%) had been registered in Ukraine, while the sales had also dropped in Russia and Croatia.

The first man of "Gorenje" pointed out that between 15 and 20m EUR would be saved in 2009. The Management of the Slovenian company with the headquarters in Velenje is of the opinion that its reaction on the crisis was quick and resolute.

"Gorenje" seeks ways to increase demand and reduce costs of materials, services and work.
The number of employees in that company was reduced between January 2008 and January 2009 by 300, and the Management plans to cut current number of workers by additional 400 to 500.

Bobinac added that his company had applied for the state subventions because it had shortened the working week for 4,800 out of total of 5,200 workers. Production in "Gorenje" dropped by 25% on annual basis during the first two months of the year, but larger number of orders is expected in March”, Bobinac said and added that the company’s investments in 2009 would be 50% smaller than in 2008, and that they would amount to 37.9m EUR.

Gorenje d.o.o. Beograd

Gorenje

Franjo Bobinac

ATAG Europe

Velenje