LIFOSA

MATERIAL EVENT



PERFORMANCE RESULTS FOR THE 1 ST QUARTER OF 2004



AB Lifosa‘s operating income was 112.471 th. LTL for the Ist quarter 2004 and

increased by 7,4 per cent vs the same period in 2003, when the sales income 

reached 104.729 th. LTL. Higher sales prices of the basic product – diammonium

phosphate fertilizers resulted  in  better money terms. 193,2 th. tons of the

product were manufactured during the reporting cycle, i.e. 4 per cent more than

during the same period last year.

According to IAS the enterprise incurred 10. 147 th.LTL net loss in the Ist

quarter 2004 before the audit. Loss making activities were due to rise in the

price of ammonia –one of the main raw materials used for DAP production. In

January 2004 ammonia prices in the worldwide markets reached the unbelievable

heights experienced only 28 years ago. Other unfavourable factors like rise in

prices for phosphates and sulphur, higher freight rates and  growth in USD

exchange rate vs LTL influenced the financial situation negatively. Save and

except the unfavourable exchange rate  the operating loss was estimated as

6.207 th. LTL in the Ist quarter 2004.

However the financial indices in March 2004 are considerably better than in

January or February – the loss of 3.380 th. LTL in March is more on paper,

actually save and except the unfavourable exchange rate the company gained

387 th.LTL profit in March 2004.





Regvita Ivanovienė

Finance director

(+370 347) 66 331