Construction output in Slovakia in April accelerated when it grew 2 percent y/y to SKK 7.253 billion. Production output in March achieved SKK 6.645 billion. Growth resulted from higher output in new construction, modernization and reconstruction by 7.2 percent. Output in maintenance and repair works dipped 13.3 percent, and construction output abroad was 3.8 percent lower, the Slovak Statistics Office informed SITA on Monday.

Industrial Output in Slovakia Up 5 Percent y/y in April

The growth rate of industrial production in Slovakia decelerated from 9.2 percent y/y in March to 5 percent y/y in April. This growth rate reflected the 6.8 percent output growth in the manufacturing industry. The production and distribution of electricity, gas and water declined 0.7 percent and production in mining and mineral extraction decreased 15.5 percent. In the manufacturing industry, machinery and equipment production not classified elsewhere posted the most significant growth of 17.8 percent, followed by the production of transport facilities, going up 16.2 percent, the Slovak Statistics Office informed on Monday.

Ruhrgas Announces Takeover Bid for Nafta Gbely

German gas company Ruhrgas Energie Beteiligungs AG announced a mandatory takeover bid for shares of Slovak gas storage company Nafta Gbely. The bid applies to bearer shares and the takeover price is SKK 1,259 per share. The bid expires within thirty days from June 7, according to data published by the company. Ruhrgas will finance all obligations stemming from the bid from its own resources. Ruhrgas‘ intention is to further develop the company in the respective market segment.

Fourteen Companies Bidding for FWA Frequencies

Fourteen entities have shown interest in operating a fixed wireless access (FWA) network in the 3,410 – 3,600 MHz frequency range. However, Telecom Office can only grant all-state frequencies to four applicants and thus it must announce a tender. A commission will select the four winners. Representatives of academic, ministerial and state administration bodies will sit on the commission. Telecommunications Office spokesman Roman Vavro informed SITA that among the applicants are the dominant fixed-line operator, both mobile telephone network operators, FWA 26 GHz band license holders, significant alternative providers and one British company.

Sales and Output of Agro-Bio Hubice Dropped Last Year

Last year’s financial result of agricultural company Agro-Bio Hubice reflected the unfavorable situation in the Slovak agricultural sector. The company’s sales of its own products and services dipped by 8.2 percent y/y to SKK 150.4 million on a 3.9 percent drop in output that amounted to SKK 182.9 million at the end of December 2003. The company reported an increase in goods sales that were SKK 9.4 million higher from the year 2002, standing at SKK 55 million. However, the company slipped into the red figures last year when its 2003 losses amounted to SKK 20.7 million following a moderate profit in the previous year.

VB Leasing Made Contracts Worth SKK 5.737 Bln. Last Year

VB Leasing Slovakia, a.s. made 7,889 leasing contracts totaling SKK 5.737 billion last year. This is an increase of twelve percent compared with 2002. The company’s balance-sheet total stood at SKK 9.083 billion at the end of last year, up 13 percent from 2002. The company’s portfolio included 22,532 leasing transactions and its market share was over 13 percent in the segment of leasing movable items in 2003, VB Leasing Slovakia informed SITA on Monday.

Forty Foreign Financial Firms Can Operate in Slovakia Without Permit

Forty foreign financial institutions are currently licensed to operate in Slovakia without the Financial Market Office’s (UFT) permission. In addition to companies with the UFT’s permission, foreign financial institutions to which the UFT did not grant permission can operate on the Slovak market from the date of Slovakia’s integration into the European Union (EU). UFT’s spokesman Marek Kacmar informed SITA that twenty-one of the foreign entities operating in Slovakia are insurance companies, eleven are stock brokerage firms and eight are credit institutions.

Tuesday is the Deadline to Agree the Land Sale for Kia Motors

Tuesday, June 8, is the deadline for land owners to come to an agreement on the sale of land plots on which Korean car maker Kia Motors wants to build a car assembly plant. Economy Minister Pavol Rusko said at a press conference on Monday that in the event that agreements are not clinched on Tuesday, he would propose the compulsory purchase of these plots to cabinet. „If we do not agree on Tuesday, the compulsory purchase process will start immediately. We have no more time,“ said Mr. Rusko.

Slovakia Needs Nuclear Power to Avoid an Energy Crisis, says Rusko

Economy Minister and Alliance of a New Citizen (ANO) head Pavol Rusko stated on Monday that the period when Slovakia will face an electricity shortage is getting longer every single day. Every day of delaying the decision to complete the remaining two units of the nuclear power plant in Mochovce prolongs the period when Slovakia will already have decommissioned its Jaslovske Bohunice V1 nuclear power plant while the Mochovce plant remains uncompleted. Mr. Rusko denied accusations that he deliberately re-opened the topic directly before the European Parliament elections. He insists that this issue is not part of anyone’s election campaign but it is an issue on which attention will be concentrated for the next several months.

Four Month Sales in the Engineering Sector Were SKK 117 Bln. in 2004

Sales of engineering industry companies during the first four months of this year registered 37.8 percent y/y growth to SKK 117.078 billion. Sales from industrial production, which grew on the y/y basis by 37.4 percent represented SKK 114,545 billion out of that figure, data provided by the Economic Ministry indicate.

Metallurgical Industry Reports Four-Month Sales of SKK 33.7 Bln.

Companies in the Slovak metallurgical industry reported sales of their own output and goods at SKK 33.663 billion during the first four months of this year. Compared with the previous year’s period, sales remained almost unchanged. Companies‘ sales from industrial activities shrank 6 percent y/y to SKK 31.516 billion, the Economy Ministry reported on Monday.

Wood Processing Sector with Four-Month Sales of SKK 25.975 Bln.

Slovak companies in the wood processing industry reached total sales for their own production and services at SKK 25.975 billion: up 4.9 percent y/y for four months of this year. Exports reached SKK 24.9 billion, growing 8.3 percent, while imports grew 7.3 percent to SKK 12.6 million for the monitored period. The number of companies in the sector grew from 215 to 225, the Economy Ministry informed on Monday.

Number of Chemical Firms Up 6 Percent y/y Four Months into 2004

Companies in the chemical and pharmaceutical industry in Slovakia posted a moderate drop in sales for their own products and services, which went down SKK 48.965 billion in four months of 2004. Four-month sales for industrial operations remained almost unchanged at SKK 46.536 billion, the Economy Ministry informed SITA. The number of companies in the chemical and pharmaceutical industry reached 170 at the end of April, which is an increase of 6.9 percent y/y.

STOCK MARKET: Slovnaft Shares Pushed SAX Index to Seven Year High

Shares of Slovnaft oil refinery firmed the official SAX share index on Monday. The index grew 2.36 percent or 4.53 points to 196.70 points, thus reaching its highest level in seven years. It was last higher on May 26, 1997, when it closed at 197.69 points. Turnover on the Bratislava Stock Exchange (BCPB) grew from SKK 719.5 million on Friday to SKK 1.576 billion on Monday, with a mere SKK 1.1 million in share trading.

Manufacturing Industry Companies Boost Four-Month Sales by 18.5%

Manufacturing industry companies reported sales of their own output and goods at SKK 272.434 billion during the first four months of 2004. Compared with the January-April 2003 period the sales figures were up by 18.5 percent. Sales from their industrial activities reached almost the same year-on-year growth dynamics and amounted to SKK 262.214 billion. The manufacturing industry reported 1,602 companies at the end of April, which is the highest number over the last four years.

Four-Month Sales of Light Industry Firms at SKK 17.145 Bln.

Light industry companies in Slovakia reported sales for their own products and services at SKK 17.145 billion in four months of this year, a 2.7 percent increase from the same period in 2003, the Economy Ministry informed SITA on Monday. Sales from industrial operations amounted to SKK 16.706 billion in late April, up 2.2 percent y/y.

FOREX MARKET: Slovak Crown Firmed Moderately Towards Euro

On Monday the Slovak currency firmed moderately towards its reference currency, the euro. CSOB dealer Richard Brza said that the crown appreciated to 39.910/940 SKK/EUR from the opening 39.960/990 SKK/EUR. The situation on the interbank money market once again influenced trading on the Slovak FOREX market. „The Finance Ministry accepted almost one-half of banks‘ bids in the auction of five-year government bonds,“ said Mr. Brza.

MONEY MARKET: Ministry Accepts Half of Bids in Bond Auction

The Finance Ministry accepted SKK 6.137 billion out of a total bid of SKK 13.957 billion in an auction of five-year bonds on Monday. The minimum yield in the auction was 4.66 percent p.a., the average yield was 4.757 percent p.a. and the maximum yield was 4.796 percent p.a., ING Bank dealer Martin Koska informed SITA. The money market remained in a significant liquidity surplus after the National Bank of Slovakia (NBS) turned down the whole bid in its NBS-bills auction last week. Commercial banks deposited SKK 29.743 billion in their reserve accounts in the central bank, meeting the minimum reserve requirement on a cumulative basis at 144.19 percent.