PSP Engineering sees losses rise

PSP Engineering sees losses rise
Published: 14 June 2004

PSP Engineering, which took control of production at the bankrupt Prerovske strojirny engineering firm last year, posted an audited loss of CZK 93.4 mln in 2003, up from a loss of CZK 6.58 bn the previous year, according to figures released by the company. The firm will not comment on the results until after its annual general meeting (AGM), scheduled for June, takes place, according to PSP spokesman Ludek Fesar.

Shareholders will vote on a proposed share capital cut of CZK 150 mln to CZK 350.7 mln aimed at eliminating past losses at their June meeting. PSP’s board of directors should propose a reduction in the nominal value of PSP shares from CZK 1,000 to CZK 700. PSP makes complete plants and equipment for the building materials industry, especially the cement sector. Exports account for nearly 70 % of the firm’s total sales. PSP is owned by the German engineering firm IKN, which acquired a nearly 100 % stake in the company from Prerovske strojirny and Tarpa Securities in 2003.