Budapest, Hungary December 20, 2005--Flooring company Graboplast expects to end 2005 with profits of HUF 1.1bn-1.2bn ($5.2M-$5.7M) on revenue of more than HUF 17bn ($80.8M), down from last year's profits of HUF 1.5bn ($7.1M) and revenue of HUF 20bn ($95.1M), CEO Peter Jancso announced on Monday, according to the Hungarian News Agency.
Next year, Graboplast expects 10 percent growth, if oil prices do not increase sharply.
Mr Jancso explained this year's decline in performance citing the sale of two of Graboplast's non-core businesses --a non-woven textile company and a rug business--in order to focus on its main activities: making plastic flooring, parquet and flooring for special facilities.
Performance was also hurt by the company's failure to make timely decisions on boosting competitiveness, Mr Jancso added. Decisions made at the start of the year were reached only several months after they should have been.
Exports account for about 85 percent of Graboplast's turnover. Its most important export markets are in eastern Europe, with Ukraine holding the biggest growth potential, Mr Jancso said. But Bulgaria and Romania, both due to join the EU in the next round of enlargement, offer promise too, he added. China as well could be a big customer for Graboplast's specialty products, such as floors for sports facilities and hospitals.
Graboplast employs 900 people, after laying off 12-13 percent of its workforce earlier in the year.
