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Negative currency effects will reduce the 2008 consolidated income statement

Post Time:Dec 18,2008Classify:Company NewsView:377

As a result of the extreme devaluation of the Ukrainian hryvnia (UAH) against the US dollar, the Vetropack Group has adjusted downwards its expectations for the current 2008 financial year. From today’s perspective, the negative currency effects will reduce consolidated net profits for 2008 in the range of CHF 30 million.

The Ukrainian subsidiary OJSC Vetropack Gostomel obtained its loans in US dollars. The collapse in the exchange rate of the Ukrainian hryvnia (UAH) against the US dollar represented a fall of over 50% in the past two months. The resulting exchange losses have to be posted at fair value and thus fully influence the 2008 consolidated income statement.

In spite of a slowdown in market growth, the operating performance of the whole Vetropack Group is meeting expectations. From an operational point of view, Vetropack Gostomel, too, is profitable.

Vetropack is one of Europe's leading manufacturers of packaging glass. With a rich variety of glass packaging products to offer the beverages and food industry, as well as a broad spectrum of services, Vetropack truly delivers "tailor-made glass". This motto describes Vetropack's wide-ranging capabilities in designing and developing, together with our customers, glass packaging solutions which in formal and visual terms best embody the product idea and marketing strategy while also fully meeting the needs of consumers. Our services range from first-class package design, production and just-in-time delivery to consulting and support services in the area of pachaging analysis, bottling, conditioning, closure technology, decorative refinement and labeling.

Source: Vetropack Group Author: shangyi

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