2005.11.28, Valmieras stikla šķiedra, RIG

JSC Valmieras stikla šķiedra                         Nov 28,2005



Comment on financial results in 9 months 2005



On Friday morning, JSC Valmieras stikla šķiedra published its 

financial results for 9 months 2005. The report indicates that the 

company has reached a 9-month net turnover of LVL 25.81 million and 

has made a net profit of LVL 1.46 million.



The company's net turnover continues to develop as budgeted, while 

its profit for 9 months 2005 is lower than planned.



Recent years' intensive work with customers, the investments 

realised by JSC Valmieras stikla šķiedra, and the circumstance that 

we operate with considerable amounts of purchased semi-finished 

products, all supported the noted increase in net turnover. As 

mentioned before, purchasing semi-finished products has been essential 

for preparing our market for the new glass fibre plant.



The net profit plan for 9 months was not achieved because of the 

cost of materials, which exceeds costs in 9 months 2004 as well as 

planned costs for 2005. First, it must be pointed out that JSC VSŠ 

was forced to purchase the abovementioned semi-finished products for 

higher prices than expected. Second, an unplanned price increase i.a. 

of raw materials and heating oil occurred.



It is due to these reasons that the company's net profit for 12 months 

will not exceed 1.5 million lats. Net turnover will be realised as 

budgeted (LVL 26.77 million).







To remind the reader: JSC Valmieras stikla šķiedra is the only glass 

fibre producer in the Baltic States. During the recent years, the 

company has conquered the growing global market of glass fibre products 

with determination and successfully.







JSC Valmieras stikla šķiedra

Assistant to the Board

Lauma Kugrēna

Phone +371 4202222

      +371 6441429

Fax   +371 4281216

laumak@vss.lv