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-0,92%25.04.2007.Tigar AD Invested 2.5 Million Euros in 2006
Pirot, 18 April 2007. At a meeting held today in Pirot, the Tigar AD Board of Directors reviewed the Corporation’s 2006 Annual Report, a proposal for the distribution of profits, an updated version of the 2007-2009 Business Plan, and several contract proposals which are under the Board’s jurisdiction
In 2006, Tigar AD and the subsidiaries it controls invested a total of 2.5 million Euros, while 2008 and 2009 plans call for total investments in the order of 11 million Euros.
This year and over the next few years, Tigar plans to invest primarily in productivity and capacity increases, and in upgrading of its manufacturing processes. These investments will significantly improve the Corporation’s competitive position and earnings. Other costs relating to its higher competitive positioning, such as restructuring and human resource optimization and training costs, are covered under a special plan. An investment plan for the tire segment has been prepared separately and is not reflected in the presented figures. The Board approved a cooperation agreement aimed at further development of the domestic network of sales outlets and service centers.
As Board members contemplated the 2006 Annual Report, they took into consideration last year’s generally poor business environment in which the tire industry operated. Leading global manufacturers reported a profit decline of up to 50% relative to the previous year, primarily due to increases in raw material prices. The Tigar Corporation itself had lower revenues from foreign exchange sales due to the appreciation of the Dinar.
Members of the Board concluded that the 2006 bottom line was internally affected by the restructuring of most of the non-tire product lines, which are expected to set the stage for healthy growth of the Corporation in the future. Other key factors which affected results were changes in direction toward new product groups and markets, and changes in product mix, now increasingly geared toward the manufacture of more sophisticated products.
Keeping in mind that dividends should reflect the overall financial situation, last year’s performance, and investment and working capital needs, a recommendation was made to the General Assembly of Shareholders that 2006 dividends should equal those paid out in 2005, or a net dividend of 22.7 Dinars per share (due to last year’s 1:10 stock split). A full dividend payout will be made in cash within 30 days following the conclusion of the General Assembly of Shareholders session scheduled for 30 May 2007.
After a careful review of management’s and auditors’ 2006 reports, the Board decided to propose the adoption of both reports at the forthcoming session of the General Assembly of Shareholders.
Tigar AD will be making the 2006 Annual Report and Auditors’ Report available on its website, both in English and in Serbian. Additionally, both reports will be made available on the Securities Commission and Belgrade Stock Exchange websites, in keeping with Listing and Quotation Regulations of the Belgrade Stock Exchange and Regulations Governing the Content and Format of Public Company Reports. Tigar AD’s 2006 Annual Report will also be published in both Serbian and English versions in the Politika daily newspaper.
In 2006, Tigar AD and the subsidiaries it controls invested a total of 2.5 million Euros, while 2008 and 2009 plans call for total investments in the order of 11 million Euros.
This year and over the next few years, Tigar plans to invest primarily in productivity and capacity increases, and in upgrading of its manufacturing processes. These investments will significantly improve the Corporation’s competitive position and earnings. Other costs relating to its higher competitive positioning, such as restructuring and human resource optimization and training costs, are covered under a special plan. An investment plan for the tire segment has been prepared separately and is not reflected in the presented figures. The Board approved a cooperation agreement aimed at further development of the domestic network of sales outlets and service centers.
As Board members contemplated the 2006 Annual Report, they took into consideration last year’s generally poor business environment in which the tire industry operated. Leading global manufacturers reported a profit decline of up to 50% relative to the previous year, primarily due to increases in raw material prices. The Tigar Corporation itself had lower revenues from foreign exchange sales due to the appreciation of the Dinar.
Members of the Board concluded that the 2006 bottom line was internally affected by the restructuring of most of the non-tire product lines, which are expected to set the stage for healthy growth of the Corporation in the future. Other key factors which affected results were changes in direction toward new product groups and markets, and changes in product mix, now increasingly geared toward the manufacture of more sophisticated products.
Keeping in mind that dividends should reflect the overall financial situation, last year’s performance, and investment and working capital needs, a recommendation was made to the General Assembly of Shareholders that 2006 dividends should equal those paid out in 2005, or a net dividend of 22.7 Dinars per share (due to last year’s 1:10 stock split). A full dividend payout will be made in cash within 30 days following the conclusion of the General Assembly of Shareholders session scheduled for 30 May 2007.
After a careful review of management’s and auditors’ 2006 reports, the Board decided to propose the adoption of both reports at the forthcoming session of the General Assembly of Shareholders.
Tigar AD will be making the 2006 Annual Report and Auditors’ Report available on its website, both in English and in Serbian. Additionally, both reports will be made available on the Securities Commission and Belgrade Stock Exchange websites, in keeping with Listing and Quotation Regulations of the Belgrade Stock Exchange and Regulations Governing the Content and Format of Public Company Reports. Tigar AD’s 2006 Annual Report will also be published in both Serbian and English versions in the Politika daily newspaper.
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