2004.10.25, Valmieras stikla šķiedra, RIG

Riga Stock Exchange                                            25.10.2004. 



JSC “Valmieras stikla šķiedra” Management report for 9 months of 2004



The Company’s primary business activity is production and sale of glass 

marbles, glass fibre and glass fibre products. The company is also involved 

in other spheres of activities related to servicing and promoting of primary 

operations, such as trading and barter operations, intermediation, foreign 

economical activities and other activities, stated in the company’s charter.



In the first 9 months of 2004 the company’s net turnover amounted to LVL 20.642.660, 

compared to LVL 15.354.000 the first 9 months of 2003. The increase of net 

turnover amounted to LVL 5.288.600 or 34,4 %; compared to plan it is 

LVL 3.477.600 or 20.3%. The increase of turnover is a result of invested 

equipment, including successful work of one-stage workshop, development of 

new products, improvement of production and sales process as well as a 

favourable exchange rate for exports.



97% of sales in the first 9 months of 2004 were exports to 28 countries.



The profit for the first 9 months of 2004 was LVL 1.791.600 compared to 

LVL 1.055.200 in the first months of 2003. The increase of amounts to 

LVL 736.400 or 69,8%, in comparison with planned it is LVL 567.300 or 46,3%.



In accordance with a resolution, made during a plenum of shareholders in 

May 2003, there were omitted dividends to Company‘s shareholders for fiscal 

year 2003 in the amount of LVL 484.100.



During this year the price for one JSC Valmieras Stikla Šķiedra share in 

Riga Stock exchange is increase by LVL 0,67 or 79,8% i.e., from LVL 0,84 in 

December 2003 to LVL 1,51 in September 2004.



On the 30 of September 2004 Company‘s share capital amounted LVL 23.903.205.



The Company has made provisions for doubtful debtor’s debts, vacations, 

commissions, reward for Company’s Council and Board members and deferred taxes.



In comparison with December 31 2003, stock of finished products is decreased 

by LVL 478.400, but balance of unfinished products is increased by LVL 97,400. 

The decrease in finished products is explained by remarkable increase of 

turnover, increase in demand and in world-wide markets for our glass fibre products.



As of September of 30 2004 the Company had 967 employees. There was a reduction 

in the number of auxiliary workers.



In 2004 the Company is planning to invest in the development of production more 

than 10 million EUR.

This year the Company has started realisation of the development conception for 

2004-2008. The key targets of the development conception and involved investment 

projects are as follows:

-	increase in production capacity;

-	decrease in costs;

-	improving work administration;

-	development of new products;

-	searching for new markets.

The investments will be made in several big projects, related to all workshops 

and technological passages.



Planned profit in 2004 amounts LVL 1.396.000, forecasted fulfillment – LVL 2.000.000.



President

A.O.Brutāns