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Állami Nyomda nine-month profit drops on exchange rate loss

Állami Nyomda, a Hungarian printer of identification cards and election ballots, said profit dropped 4.8% in the first nine months of the year as a weaker forint increased the cost of borrowing in euros.

Net income fell to Ft 668.5 million ($3.3 million) from Ft 702.3 million a year earlier, the Budapest-based company said in a stock exchange statement today. Exchange rate fluctuations cost the company Ft 64.9 million, it said. Állami Nyomda Nyrt, whose clients include governments, banks and phone companies in Bulgaria, Hungary, Poland, Romania, Russia and Slovakia, listed its shares last December. The stock since has risen 4.1%, lagging behind the 11% gain for the benchmark BUX Index and valuing the company at Ft 8.95 billion. Sales in the first nine months rose 28% to Ft 10.6 billion. The company said last month it won an order worth Ft 100 million to produce driving licenses for Albania. The forint traded at 272.68 per euro at the end of September compared with 249.67 the same time in 2005. (Bloomberg)