Cofinec plunges on H1 results .
Emese Bartha
BUDAPEST 1996-08-30
Shares of France-registered printed packaging company Cofinec S.A. plunged sharply on the Budapest Stock Exchange ( BSE ) on Friday , despite a mostly reassuring forecast by the group .
Cofinec 's Global Depositary Receipts ( GDRs ) opened at 5,200 forints on the BSE , down 600 from Thursday 's close , following the release of its first half results this morning .
Cofinec CEO Stephen Frater told reporters in a conference call from Vienna on Friday before the opening of the bourse that he expects a stronger second half , although the group will not be able to achieve its annual profit goal .
" We will not achieve the full 37 million French franc ( net ) profit forecast , " Frater said . "
Obviously , we cannot make up the unexpected decrease that has been experienced in the first half of the year . "
Frater declined to give a forecast for the full year , ahead of a supervisory board meeting next week .
Cofinec , the first foreign company to list on the Budapest bourse , released its consolidated first half figures ( IAS ) this morning .
In the conference call , Frater said he regarded Cofinec GDRs -- which are trading below their issue price of 6,425 forints -- as a buying opportunity .
" Obviously , at some point it represents a buying opportunity , " Frater said . "
I think the reality is that we operate in emerging markets , emerging markets tend to be more volatile . "
" My message is that the fundamental strategy of the company , its fundamental market position has not changed . "
The group , which operates in Hungary , Poland and the Czech Republic , reported an operating profit before interest of 21.8 million French francs compared to 34.1 million in the same six months of 1995 .
Net profit for the January-June 1996 period was 2.1 million French francs , down from 10.3 million in the first six months of 1995 , with the bulk of this decline attributable to the performance of Petofi , one of its Hungarian units .
Cofinec said Petofi general manager Laszlo Sebesvari had submitted his resignation and will be leaving Petofi but will remain on Petofi 's board of directors .
" Until a new general manager of Petofi is appointed ...
I will in fact move to Kecskemet ( site of Petofi printing house ) for the interim and will serve as acting chief executive officer of Petofi , " Frater said .
-- Budapest newsroom ( 36 1 ) 327 4040