Liepajas metalurgs                                              01.11.2005.



Management report of JSC "Liepajas metalurgs" (corrected)



(Word “increase” changed to “decrease” in first paragraph)  

The economical activity of nine month of the year 2005 for JSC "Liepājas 

metalurgs" gives the profit in amount of 1,4 million LVL, but it is for 3,2 million

LVL less than compared this result with profit of nine month of last year. These 

changes are involving with the price level in world’s market of ferrous metal. At 

this year the selling prices in world’s market of ferrous metal are decreased compared 

with the prices in the year 2004.. The selling price of realized armature of JSC 

"Liepajas metalurgs" are about 2,5% less than in previous year, but production costs 

(prices of raw materials) are about 12,9% more than in previous year.

Net  turnover  of  nine  month  this  year  is  about  108,3  million.  LVL,  it  is 

about 2,1 million LVL more than in the same time period in the year 2004. The explanation 

of growth of net turnover is following: at this year are produced armature for 5109 t 

more than in previous year and realized for 24 608 t more than in the year 2004. 

Partly the realization volume depends from customer’s desires and possibilities to 

receive the previously ordered goods.

The activity of JSC “Liepajas metalurgs” has not any changes. The modernization of 

plant and the construction of new continuous casting equipment are in progress. The 

discussions of technical problems about a change of open furnace to electrical furnace 

are in progress too.



Joint-stock company "Liepajas metalurgs" 

Chairman of Board

/V.Terentjev/

01.11.2005.

Liepaja