Kaolin Ad

By the end of the first nine months of 2008 Kaolin Plc has generated a 26 % growth of the consolidated incomes from sales compared to the same period of 2007 (BGN 108 210 000 by Sept. 30th 2008 compared to BGN 85 684 000 by Sept. 30th 2007). In comparison with the individual incomes of the company for the first nine months of 2008 the rest of the economic group has added incomes to the amount of BGN 17 088 000, out of which the biggest share to the amount of BGN 6 485 000 belongs to PKSP, followed by Kopovi with BGN 5 548 000.

The generated by the end of the third quarter consolidated profit of the group to the amount of BGN 9 738 000 has grown up considerably compared to the result of the group by June 30th 2008 – BGN 5 754 000. Most essential contribution to the consolidated profit also for the third quarter continuously belongs to the companies PKSP, Kopovi and Srbokvarc.
The generated sales on a group level are in accordance with the prognoses of the management as of the beginning of this year. Despite the world financial crisis and the overall worsening of the market situation, the company’s management, yet by Sept. 30th 2008, reports achievement of the projected consolidated growth (20 %) of the incomes for this year.

Negative influence over the expected sales volume for the last months of this year is expected to be imposed by the consumption shrinking in the ceramics and construction fields, which has already been noticed in the country and abroad. However, the group expects to compensate this decrease due to the diversified product range mainly by increasing the sales of limestone and filling products.

In this reference, along with the progress of the crisis, the management of Kaolin Plc yet during the past quarter structured its investments priorities in the country and abroad, as several potential investments intentions outside the country were frozen. Besides, the main accent until the end of the year shall remain the timely conclusion and put into operation of considerable energy-saving investments, including provision of gas supply for the factories, general introduction of energy management in every field, as well as partial automation of the main production lines.

Regarding the projects abroad, a priority shall remain the project for completion and putting into operation of the factory for cilica sand concentration in Ukraine, which is expected to be completed during the first quarter of 2009. During the third quarter was initiated the preparation for construction of an open mine for the kaolin deposit of Promineral. The activities under this project shall be frozen for the autumn – winter period, i.e. by the end of the first quarter of 2009. Irrespective of the political and economic crisis in Ukraine, the management of Kaolin Plc does not expect a serious delay in the growth rates of its active business there.