December 20 (SeeNews) - Slovenian home appliances maker Gorenje [LJE:GRVG] said on Tuesday it expects to miss its consolidated net profit target for this year while forecasting a 45.6% increase in group net earnings for 2012.
Consolidated net profit is estimated at 9.2 million euro ($12 million) this year and at 13.4 million euro in 2012, the company said in a bourse filing.
In December last year Gorenje said it expects its 2011 consolidated net profit to reach 21.1 million euro. It turned to a consolidated net profit of 20 million euro in 2010.
Gorenje said on Tuesday it was unable to pass the strong rise in commodity prices this year onto the price of finished products.
The group is estimated to generate 1.4 billion euro of sales revenue this year with a positive free cash flow of 11.4 million euro and earnings before interest and taxes (EBIT) seen at 38.1 million euro.
Gorenje Group said it will continue to face severe challenges in 2012 as the harsh economic and financial conditions seen this year are expected to persist.
The group is planning revenue of nearly 1.4 billion euro next year with EBIT seen at 50 million euro.
Key goals for the coming year include improving operating profitability, increasing free cash flow to 28.6 million euro and reducing overall debt.
The business plan for 2012 also calls for the divestiture of some real estate properties, a reduction of headcount and exploring new bourse listing options, Gorenje said, giving no further details.
The company is currently listed on the Ljubljana Stock Exchange.
($=0.7644 euro)
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