Pannonplast, a Hungarian maker of plastic packaging turned stock market investor, posted a Q3 profit after the value of its stake in a local computer services company increased.
Net income for the three months ended September 30 was Ft 396 million ($1.95 million) compared with a loss of Ft 12 million a year earlier, the Budapest-based company said in a statement to the stock exchange today. The company booked a Ft 300 million gain on the revaluation of its stake in Synergon Nyrt, the top performer in the benchmark BUX Index this year. Its shares have more than doubled as the computer company won new contracts. Pannonplast Nyrt has focused on investments in companies in the region after demand for its packaging waned, forcing it to sell property and unprofitable units. The company bought its first stake in Synergon in May for an undisclosed sum and said earlier this month it plans to sell a third of the holding. Sales in the Q3 at Pannonplast slumped 35% to Ft 3.44 billion, the company said. It has reduced its workforce to 677 people from 773 at the end of the first half. Shares of Pannonplast were unchanged at Ft 3,400 at 11:02 am in Budapest, giving the company a market value of Ft 14.3 billion. They have risen 75% this year. (Bloomberg)
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.