Pegas Posts Fourth-Quarter Profit on Currency SwingsLenka Ponikelska and Ladka Bauerova
March 14 (Bloomberg) -- Pegas Nonwovens SA, a Czech maker of nonwoven textiles, swung to a fourth-quarter profit as currency swings boosted earnings.
Net income for the three months ended Dec. 31 was 3.2 million euros ($4.1 million) from a loss of 2.3 million euros a year earlier, the Znojmo, Czech Republic-based company said. Revenue rose 20 percent to 47.6 million euros. The company will announce its dividend in June or July, Chief Executive Officer Frantisek Rezac said at a Prague press conference.
Pegas expects 2013 Ebitda, or earnings before interest, tax, depreciation and amortization, to rise between 5 percent and 15 percent from 38.1 million euros last year, it said. Total capital expenditure for the year won’t exceed 41 million euros, it said.
“I don’t expect a strong market reaction as they met their full-year guidance,” Komercni Banka analyst Josef Nemy said by phone. “Their 2013 forecast is also pretty decent and the news that the Egyptian plant should have positive results is also good.” Nemy has a “buy” recommendation on the stock.
Pegas shares traded down 0.2 percent at 520 koruna at 9:09 a.m. in Prague, their lowest level since Feb. 26, according to data compiled by Bloomberg.
The priority for 2013 is the commissioning of the new production line in Egypt, Rezac said. The new plant in Egypt should have a positive Ebitda, he said.
The company expects production volume this year to rise helped by its Egyptian line. Because of the new capacity and the need to create inventories at the Egyptian plant, there should be a slight increase in the level of inventories of finished products compared with 2012. Pegas’ Egyptian plant should post a positive Ebitda this year, it said.
Production capacity should be sold out for this year, Pegas said, while the company is considering a new production plant in the Czech Republic. It also plans a second factor in Egypt, Rezac said. The new Czech plant is “not for next year,” he said.
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