Dolnoslaskie Surowce Skalne revises financial forecasts

2010-09-03

Dolnoslaskie Surowce Skalne (DSS) has made adjustments to its financial prognoses for 2010. According to its new estimates, the firm will generate total revenues of PLN 171.1m (€43.2m) and a net loss of PLN 5.7m (€1.4m), Parkiet reported.
The results will fall below original expectations for a number of reasons, including less-than-expected raw material sales this year and delays in signing and carrying out contracts. Furthermore, the company's order book likewise includes two contracts, the prices for which are well below the average price of its other orders. One of these contracts is slated for completion at the beginning of next year, while in the case of the second DSS has already renegotiated the prices, which will also rise from 2011.
DSS' senior management expects the situation will improve next year, when the company is expected to achieve a net profit of PLN 46.9m (€11.9m) on revenues of over PLN 515m (€130.7m). According to its plans, from the beginning of next year DSS will begin the process of consolidating its results with Kieleckie Kopalnie Surowcow Mineralnych and Kopalnia Surowcow Skalnych in Zlotoryja. Dolnoslaskie Surowce Skalne has already inked a contract with the Ministry of Treasury to purchase 85% of the shares in both these companies.
In H1 2010 the company noted sales revenues of PLN 45.7m (€11.6m) and a net loss of PLN 11.1m (€2.8m).