Tigar reported business profit of RSD 77m in first half of 2010

- Tigar reported a business profit of 77 million dinars at the consolidated level in the first half of the year, while its sales incomes grew by 33%. Tigar still exports half of its products, 80% of which are exported to the EU market - it is stated in the company's announcement.

The key characteristics of the operations in the first half of the year are the presence of effects of the crisis in domestic and foreign markets and commencement of cooperation with several new buyers, especially in the field of footwear, which has resulted in the growth of export in aforementioned period. Due to delay in commencement of production in the unit for manufacturing products of recycled rubber, which was put in operation in late March, the projected volume of production has not been met in this segment. Despite that, 300 tons of these products were exported to the market of Scandinavia in the second quarter of the year.

- After 2008 and 2009 when the transaction with Michelin, through which Tigar sold its share in the joint venture, significantly affected the company's financial results, the result achieved in the first half of this year exclusively derives from the business activities and market appearance of all parts of the company. As it was expected, the greatest contribution to that result was given by the footwear product portfolio, in which most investments were made in the previous period. That is why it should not be surprising that the export of the footwear factory grew by 50% in the first half of the year, while, according to the projection, it should be 100% bigger by the end of the year against 2009. The fact that the business profit of 77 million dinars was registered at the consolidated level, after last year's losses, speaks in favor of the system stabilization, while the activities for reaching projected values are in the pipeline for the following period - says Dragan Nikolic, the President of Tigar Corporation.

Tigar's Managing Board, which consists of Aleksej Misailovic, Gordana Lazarevic and Miodrag Tancic - the members who were appointed at the annual Shareholders' Assembly, stated that, in spite of negative trends in the capital market in the long run, recent realization of the First issue of long-term bonds proved that there was interest in investments in the company. They also added that it was a good signal for new issues of securities.

Tigar a.d. Pirot

Michelin Francuska

Tigar

Michelin

Dragan Nikolic

Aleksej Misailovic

Gordana Lazarevic

Miodrag Tancic