Earnings of the listed and to be listed companies

‰ The commercial and industrial group AS Estiko earned 6 million kroons ($428,571) of net profit at 346.7 million kroons net turnover in the period January-August. The group's financial director, Igor Sada, said that in the eight-month period Estiko had met 85.4 percent of the group's consolidated turnover target of 406 million kroons and 60 percent of the profit target, according to non-audited figures. Year on year, the net turnover of the Estiko group increased by 111.5 percent in the eight-month period, while profit declined by 7.7 percent, he said. Sada said that the fall on the Russian market had not had any effect on the group's industrial sector results so far. The Estiko group's commercial sector suffered a 2.1 million kroons loss on 235.5 million turnover in the first eight months of 1998. The loss was caused by extraordindary expenditures connected with the launching of new projects. The growth in the group's trade turnover was 146.6 percent compared with the same period last year.

‰ Because of difficulties experienced by Russian automobile manufacturers, AS Norma canceled its turnover and profit targets for 1998. Cancellation of the turnover and profit targets was caused by a decrease in output by Russian automobile manufacturers, Norma development director Peeter Tibbo informed the Tallinn Stock Exchange. Because of the Russian financial and banking crisis, transfer of money for products already supplied also has become more complicated, Tibbo said. According to its forecast published on April 22, Norma expected a turnover of 490 million kroons and a net profit of 85.5 million kroons in 1998. No new forecast can be published until the situation becomes settled, Tibbo said.

Thanks to active negotiations in Russia, AS Norma has managed to reduce the receivables from its main clients from 207.1 million to 143.7 million kroons. Norma financial director Peep Pihotalo said the reduction of receivables has been in freely convertible currency. Pihotalo said that to speed up payment for its supplied products, Norma made an agreement with AvtoVAZ that in the fourth quarter the Russian car manufacturer will pay for the goods in cars, delivering them immediately to a dealer appointed by Norma. The dealers will pay for the goods received directly to Norma. Such a scheme will be used only once, Pihotalo said, and will make it possible to considerably decrease AvtoVAZ's debt to Norma. The selling expenses will be covered by the difference in the wholesale and retail price of the cars, thus Norma will have no additional expenses in connection with their sale, Pihotalo said.

‰ The non-consolidated net profit of Rakvere Lihakombinaat (Rakvere LK) meat-packer was 4.4 million kroons at a net sales turnover of 516.1 million kroons in the January-August period. In August, Rakvere LK earned 1.06 million kroons of net profit at 61.3 million kroons of sales turnover. The net turnover of Rakvere LK's subsidiary, Rigas Mie of loss in the eight-month period.

‰ In August, Rigas Miesnieks showed a profit of 1 million kroons at 21.5 million kroons net turnover. AS Ekseko earned 1.5 million kroons net profit in August at 11.5 million kroons on net sales turnover. Over the eight-month period, Ekseko's net profit was 5.8 million kroons and its net turnover 84.9 million kroons. Rakvere LK has not been able to meet its budget targets in conditions where a vague situation continues on the Russian and Ukrainian markets and export of output to those markets is excluded, Andrit Heidov, an aide to the company director, said. Rakvere LK's non-consolidated profit target for 1998 is 37.6 million kroons, but the company does not rule out the possibility that it will be revised.

‰ Tallinna Kulmhoone freezer plant earned a consolidated net profit of 14.86 million kroons at 225.3 million kroons of turnover in the eight-month period January-August. Compared with last year, Kulmhoone's net profit increased by 6.55 million and its turnover by 160.6 million kroons. Tallinna Kulmhoone Financial Director Evald Karu said the Russian economic crisis has had no effect on Kulmhoone's operations or its financial situation, because the company is not dependent on the Russian market. Tallinna Kulmhoone's only export partner is Latvia where it sold 302.6 tons of ice-cream, or 12.7 percent of total sales, in the eight-month period. In the eight months, ice-cream sales totaled 2,373.6 tons. Compared with the same period last year, the sales volume increased by 21.7 percent or 423 tons.

Latvia

‰ Gutta juice producer earned a net profit of 2.517,000 lats in the first eight months of this year, the Riga Stock Exchange reported. The company produced a turnover of 14,813,000 lats in the period. Gutta has made provisions for extraordinary losses worth 400,000 lats. Gutta's long-term investments made up 12,209,000 lats and work capital amounted to 14.293 million lats. Gutta's equity capital and provisions constituted 12,436,000 lats and long-term obligations 2,804,000 lats. Assets accounted for 26,502,000 lats.

Lithuania

‰ During the first eight months of this year, Lithuanian gas company Lietuvos Dujos sustained 6.755 million litas in losses. The company's losses amounted to 1.493 million litas over the first half of 1998. Lietuvos Dujos earned a profit of 8.1 million litas in the first quarter, but sustained losses of 9.6 million litas over the second quarter. In August alone, the company sustained losses of 651,000 litas (LTL 7.06 million year-on-year) on 28.97 million litas sales (LTL 32.99 million in August 1997).

Lietuvos Dujos earned a profit of 36.05 million litas over the January-August period last year. However, 16 million litas were fines returned by consumers. In January-August, the company's turnover came up to 356.7 million litas, which is 19.6 percent lower than over the same period last year. The Lietuvos Dujos' unprofitability is attributable first of all to the decrease is gas consumption. If prices for gas are not increased this year, Lietuvos Dujos could sustain considerable losses instead of the 16.84 million litas in net profit earned last year. The new prices have already been calculated, and approval by the Ministry of Economy is now awaited, the general director of the company, Kestutis Sumacheris, told BNS. Over the January-August period, Lietuvos Dujos bought 766.5 million cubic meters of gas from Russia, which is 23.4 percent less than last year.

‰ Stumbras distillery turned over 60.1 percent less over the first eight months. Stumbras' sales, minus excises and value-added tax (VAT), came to 56.43 million litas for the January-August period, compared with 90.35 million litas for the same period last year. In August, products worth 6.92 million litas (excluding excises and VAT) were sold — 25.6 percent less than in August of last year. In 1997, Stumbras' turnover totaled 122.8 million litas. Over the first six months of this year, the company received 3.17 million litas in net profits, while profits totaled 15.8 million litas for all of 1997.