International Property News

Skoda Holding raises 2007 sales by 39%

21st March 2008

Skoda Holding, a Czech producer of equipment for power stations and transport technologies, raised sales to a record Kc13bn in 2007 from Kc9.35bn a year earlier, chief executive Jiri Zapletal has told CTK.

Sales increased thanks to a growth in supplies to the energy sector and rail vehicles sales, Zapletal said.

Net profit exceeded Kc1bn last year. In 2006, Skoda Holding made net profit worth Kc1.66bn.

This year, the company plans sales worth Kc16bn. Last year's results do not include acquisitions in Russia, Hungary, India and China.

Turbines producer Skoda Power raised sales from Kc2.7bn to Kc4.5bn, Zapletal said, adding the firm expects sales worth Kc6bn for this year and Kc7bn for 2009.

Skoda Power, which exported 60 percent of output last year, has signed orders worth more than Kc20bn for 2008-2012.

The Transportation group raised sales by Kc2bn year-on-year to Kc8.5bn in 2007 mainly thanks to higher interest in trams and trolleybuses.

The Transportation group, comprising companies Skoda Transportation, Skoda Electric, Vagonka Ostrava and VUKV Praha, produces trams, trolleybuses, train engines, commuter trains and trains for the underground. It exports 40 percent of output.

Trolleybus maker Skoda Electric generated sales worth Kc2.2bn in 2007, a year-on-year increase of one-third. Exports made up 70 percent of the sales.

Sales of the entire holding were not based on new acquisitions, Zapletal said, adding the company has invested a great deal and raised the volume of orders.

In 2006-2008, Skoda Holding will invest more than Kc3.3bn, of which investment by Skoda Power will reach Kc1.1bn.

Transportation, for instance, will build three new production halls worth Kc2bn in Plzen, western Bohemia, by June to meet the demand for trams, train engines and trains for the underground.

Skoda has recently acquired rail vehicles maker Pars nova. It is also eyeing another Czech rail vehicle components producer, said Zapletal without disclosing the name of the company.

Skoda Holding employs 2,900 people in its Czech companies, excluding Pars. The holding hired 530 staff in 2007. This year, staff numbers will grow by at least 350, said personnel head Josef Bernard.