Business News

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Economy surges in last quarter

Photo: David Castillo Dominici / freedigitalphotos.netThe Czech economy grew by one of the fastest rates in Europe in the last quarter of 2013 with a 1.6 percent advance compared with the previous three months. That rate of growth is believed to be the second only to Romania in the rest of Europe. In spite of the late spurt, the Czech economy as a whole is expected to have shrunk by 1.1 percent over the entire year.

Skanska profits hit by falsified figures

Illustrative photo: Kristýna MakováThe sad state of the Czech construction sector is perhaps summed up by managers who cooked the books to cover up disappointing results at one of the biggest building companies. The more than creative accounting by three managers at the Czech unit of Swedish building group Skanska contributed to a sharp drop in 2013 profits to nearly 900 million crowns. Skanska, which boasted a clean image in a somewhat murky sector, said it had laid off the managers and shaken up internal procedures.

Bank profits hit by low interest rates

Photo: Filip JandourekLow interest rates have dented profits for two of the country’s biggest banks. Komerční Banka declared a just over 10 percent fall in net profit for 2013 while ČSOB was 11 percent down on the previous year. Cleaned up of exceptional factors, Komerční Banka said its profit drop was just 5.6 percent with ČSOB stating a 3 percent fall. The remaining third big bank, Česká Spořitelna, should declare its results at the end of the month.

Far east sales help china producer

Photo: archive of Český PorcelánStrong exports to the Far East and Russia have helped traditional porcelain producer Český Porcelán boost its 2013 profits by around 10 percent to around 5 million crowns. The manufacturer, which celebrates its 150th anniversary this year, exports around 60 percent of its output. This includes dishes in the traditional Czech ‘blue onion’ design as well as porcelain figures, which are particularly popular in Russia.

Rail company examines fuel bill

Photo: Filip JandourekRail passenger company Czech Railways is seeking another round of cost savings with train drivers the subject of close scrutiny. The company has installed global positioning and other monitoring systems to work out if fuel consumption really corresponds to the distances travelled. First results of monitoring show 10 percent or higher differences in fuel consumption. In some cases, drivers are leaving motors running or travelling needless extra kilometers. Fuel theft could also be a factor. With a 2 billion crown annual fuel bill, the rail company believes tens of millions could be saved.

Brown coal mining limits up for debate

Photo: Tomáš AdamecRelaxation of existing limits on coal mining are possible according to the new minister of industry and trade. Jan Mládek said on taking up his office that small changes could be contemplated on the main coalfield in the north-west of the country as long as there is no destruction of towns and local landmarks. He added that a major extension of the mining limits would have to be backed in a regional referendum. Existing limits date from the start of the 1990’s. Coal mining companies argue that existing reserves are being depleted and jobs are at risk wile environmentalists say the country should switch to cleaner fuel.

Suburban and long distance trips boost Czech Railway figures

Photo: Tomáš AdamecState-owned rail passenger company Czech Railways says around half a million more journeys were taken using its services last year than in 2012. Passengers paid for almost 170 million trips in 2013 with the biggest increase on suburban city and long haul journeys. The company is counting on a small operating profit of around 24 million crowns for this year.

Nuclear reactor output exported abroad

Photo: archive of Radio PragueThe Czech Republic exported less electricity in 2013 than in its record topping volume of 2012. The country sold 16.9 TWh of power abroad last year compared with the previous 17.1 TWh. Czech power companies have been exporting the equivalent of the entire annual output of one nuclear reactor for each of the last four years. The strong export performance is undermining arguments for state owned utility ČEZ to add another two nuclear units at its Temelín site.

Plzeňský Prazdroj sees record foreign sales

Photo: Plzeňský PrazdrojThe biggest Czech brewer, Plzeňský Prazdroj, announced record exports sales in 2013 although overall beer sales were down on the previous year. The brewer said total sales declined by around 2.0 percent but exports shot up by around 5.0%. Asian countries and Britain were among the brightest export markets. In the Czech Republic. sales of flagship beer brand Pilsner Urquell, cider, and non-alcoholic beer sales, bucked the downward trend.

Marching orders for Czech clothes firm

A Czech clothes producer has landed the contract to provide the ceremonial uniforms for the Dutch army. The order for around 70,000 outfits was won by Prostějov based company Koutný in the face of Dutch and Belgian competition. Professional uniforms represent around 60 percent of the firm’s turnover with its outfits worn by the Czech army, police, prison service, customs agents, firemen and staff at Prague’s main airport.

Chris Johnstone