ZAGREB (Croatia), November 5 (SeeNews) – Croatian blue-chip civil engineering institute IGH reported on Monday a 50.6% year-on-year surge in net profit through September, despite weaker performance in the third quarter, but its share price plunged as brokers said the results failed to meet market expectations.
IGH's net profit for the first nine months of 2007 rose to 36.3 million kuna ($7.2 million/4.9 million euro) from 24.1 million kuna a year earlier and was in line with company projections, IGH (Institut Gradjevinarstva Hrvatske), said in a statement to the Zagreb Stock Exchange. IGH is one of the 30 members of the 30-share index Crobex of the Zagreb bourse.
Its third-quarter net profit dropped to a mere 152,000 kuna from 5.3 million a year earlier, figures from the statement showed. The company didi not elaborate on the reasons for the fall and IGH officials were not immediately available to comment.
IGH’s share closed at 12,949 kuna on Monday, down 7.07%, on relatively strong turnover of 11.3 million kuna, following a string of record highs in the past few weeks.
“The released business results that were not at the level of the strong expectations also contributed to the fall in the share price today,” said a broker with Zagrebacka Banka.
IGH issued the following details:
| (In millions of kuna) |
Jan-Sept’07 |
Jan-Sept'06 |
July-Sept’07 |
July-Sept’06 |
| Net profit |
36.3 |
24.1 |
0.152 |
5.3 |
| Pre-tax profit |
43.3 |
31.7 |
3.3 |
9.1 |
| Total revenue |
490.1 |
397.2 |
149.3 |
145.4 |
| Sales in Croatia |
451.6 |
351.0 |
137.2 |
128.6 |
| Sales abroad |
13.1 |
18.8 |
3.0 |
4.1 |
| Total costs |
446.8 |
365.6 |
146.0 |
136.3 |
(1 euro=7.3419 Croatian kuna)