CRISIS BRAKE ON MACHINE BUILDING
Sparky, Mashstroy main companies to blame for sectors BGN 11m total loss
The sales of listed machine-building companies in Bulgaria slumped 57.6% in 2009, the non-consolidated reports of the five biggest companies in the sector show. The total sales of M+S Hydraulic, Sparky, HES, Elprom-ZEM and Mashstroy last year amounted to BGN 85.8 million, compared with BGN 202.3 million in 2008.
Machine-building enterprises work mainly for export and the shrinkage of US and European markets affected them seriously, Stara Planina Hold CEO Vasil Velev told the Pari daily. M+S and HES are part of the holding's portfolio.
Companies
Only Elprom-ZEM reported a sales increase on a yearly basis. Last year its sales went up 6% to BGN 15.7 million. The biggest slump was booked by Sparky: 79.5% to BGN 8.3 million. In absolute terms, the biggest sales income was reported by M+S Hydraulic. Its sales, however, decreased 53.7% to BGN 38.1 million.
Change
The situation improved at the end of 2009, though. The companies' fourth-quarter results show a 4.6-percent increase in sales on a quarterly basis to BGN 20.1 million. Yambol-based HES booked the biggest jump: 51.5% to BGN 5.3 million for Oct-Dec. The fourth quarter is traditionally stronger but last year it was connected with bouncing off the bottom, Velev said. Elprom-ZEM, however, was not so successful. Its sales fell 2.1% to nearly BGN 3 million in the last quarter of the year.
Results
The five companies reported a total loss of BGN 11.08 million for 2009, compared with a BGN 14.1 million profit for 2008. Sparky and Mashstroy were the biggest losers with negative results of BGN 11.6 million and BGN 236,000 respectively. In 2008 the Ruse-based company booked a BGN 3.9 million profit but Mashstroy was again in the red with BGN 174,000. The other three companies reported profits, though smaller than in 2008. Elprom-ZEM posted a BGN 550,000 profit, down 40% year on year. M+S Hydraulic's profit shrank 99.4% to BGN 38,000. HES netted BGN 153,000, down 94.7% on 2008.
