Hungarian construction company Vegyépszer expects increasing revenue in 2006, but falling profits, because of higher energy prices, CEO Gyula Tímár said in Tuesday's issue of business daily Világgazdaság.
Vegyépszer expects revenue of Ft 80-90 billion in 2006, compared to Ft 56 billion in 2005, Tímár said. It targets net profits of Ft 3 billion. According to preliminary figures, the company had after-tax profit of Ft 3.8 billion in 2005. Tímár noted that Vegyépszer holds orders to keep it operating at 80% capacity. Projects Vegyépszer is currently working on include motorways, bridges, waste disposal facilities and sewage treatment plants. The company is also cleaning up the site of an old non-ferrous metals factory. The company is also building homes in Miskolc and in Budapest where it will slow developments as they could sell less homes than planned. State orders account for 80% of Vegyépszer's business, meaning the company is able to pay its subcontractors on time, Tímár said. In February, Vegyépszer purchased 48% of troubled holding company Transelektro.