Teraplast: 1Q Net Profit Fell 57% On Higher Raw Material Costs

05.12.2011 By Andrei Circhelan

Romanian plastic systems maker Teraplast (TRP.RO) Thursday reported a net profit of 1 million lei (EUR245,000), down 57% from RON2.5 million in the same interval of 2010, held back by higher costs for raw materials.

First-quarter sales stood at RON38.1 million, up 11% from RON34.3 million in the year-earlier period.

The company posted an operating loss of RON1.5 million (EUR368,000), from a profit of RON1.2 million in the same interval of 2010. The financial result rose to RON2.6 million (EUR620,000), from RON1.3 million.

"This positive financial result is based on the appreciation of the leu, corroborated with currency hedging operations," the company said in a news release.

At the end of the first quarter, the company had debts of RON105.7 million, up 49% from RON73.4 million a year before.

The company had 400 employees at the end of March, compared to 495 in the same interval of 2010.

Teraplast is part of the Teraplast Bistrita Group, which also includes the subsidiaries Plastsistem, Politub, TeraGlass and Tera Tools.

Teraplast has a share capital of RON29.7 million, divided into 297.8 million shares with a face value of RON0.1.

The company is 34.26% owned by Dorel Goia, while SIF Banat-Crisana (SIF1.RO) holds 10.82% and Emanoil Viciu holds 10.15%.

Teraplast shares closed down 3.92% Wednesday, to RON0.49. (EUR1=RON4.0842)