 COMPANY PROFILE |
The joint stock company Moravia Steel arose on 23 August 1995 with its entry in the companies register. The company's shareholders are RFG, a.s. (50 % of basic capital) and SICOMM, a.s. (50 % of basic capital). On 31st December 1998 MORAVIA STEEL a.s. owned equity investments in eight companies (Trinecke zelezarny a..s., Moravia Steel AG Zug, Moravia Steel Slovakia a.s., Moravia Steel Slovenia d.o.o., Moravia Steel Iberia a.s., Moravia Goel Trade d.o.o. and NPT kom.spol.) and had controlling influence in seven of them. The turnover of this entire group headed by MORAVIA STEEL a.s. exceeds CZK 30 billion.
The main and decisive acquisition of MORAVIA STEEL a.s. was TRINECKE ZELEZARNY a.s., where the company had a 65 % share in basic capital on 31st December 1998.
The mission of TRINECKE ZELEZARNY a.s. is to produce steel and related products with a high degree of finalisation, especially rods, flat iron, leaf springs, angles, flat bars and wires with a circular section of 5,5 - 22mm and rails.
In keeping with its subject of enterprise, MORAVIA STEEL a.s. procures key raw material for TRINECKE ZELEZARNY a.s. and effects the sale of almost all production of rolled goods and semi-finished products manufactured in the steel works. MORAVIA STEEL a.s. also co-ordinates ongoing financial management and formulates the financial strategy for the entire group, in which it has controlling influence.
| MARKET POSITION |
In 1998 MORAVIA STEEL a.s. sold a total of 1,921 tons of rolled goods (including semi-finished products), which represents a slight increase over 1997 (101,3 %).
In exports of steel products, which accounted for 55,3 % of sales in 1998,there was a basic reversal caused by the financial crises in Asia and Russia and the world-wide steel industry recession. Consequently, MORAVIA STEEL a.s. was forced to seek out new sales opportunities in Europe and appreciably reduce from the volume of sales to the Far East. In 1998, the main foreign customers of MORAVIA STEEL a.s .were countries of the European Union (34 % of total exports) and Eastern Europe. Emphasis was placed on utilising the affiliate network in Germany, Portugal, Slovenia and Slovakia. Exports went to 64 % countries.
In the Czech Republic, MORAVIA STEEL a.s. held its position as the dominant supplier of rolled wire, reinforcing bars and the exclusive supplier of rails for Ceske drahy.
|
| MAIN COMPANY OBJECTIVES FOR 1999 |
MORAVIA STEEL a.s. will continue to purchase key raw material for TRINECKE ZELEZARNY a.s. and its subsidiaries. Exceptionally, in 1999 the company will also purchase billets for further processing in rolling mills due the limited production of raw iron (general repair of the blast furnace). A long-term contract was concluded in January 1999 with Karboinvest a.s. for deliveries of coal and coke.
MORAVIA STEEL a.s. will effect sales of steel products to domestic customers primarily through direct delivery. The domestic delivery plan envisions gradual improvement in the Czech market in the course of 2000. In accordance with company strategy, more consignment warehouses were established and long-term framework agreements will be concluded for deliveries of steel products. Deliveries on the domestic market will also be influenced by the financial situation of customers.
The main task to ensure exports in 2000 is above all to assert the interests of MORAVIA STEEL a.s. on a European market where supply exceeds demand. To meet this objective, full advantage will be taken of the affiliate network as well as of existing long-term contracts with trading partners for deliveries of steel products. Sales in 1999 will be concentrated in EU and central European countries.
MORAVIA STEEL a.s. in accordance with its commercial mandate, will continue in 2000 to ensure all shipping and related services.
| REPORT OF THE SUPERVISORY BOARD ON THE FINANCIAL STATEMENTS OF MORAVIA STEEL a.s. FOR 1998 |
On the basis of the submitted documents which were discussed by the Board Directories of Moravia Steel a.s. , the Supervisory Board reviewed the financial statements of MORAVIA STEEL a.s. for 1998 and discussed the proposal for the distribution of 1998 profit.
In accordance with the audit opinion, the Supervisory Board recommends that the General Meeting of MORAVIA STEEL a.s. approve the financial statements of MORAVIA STEEL a.s. for 1998 including approval on the Board of Directors' proposal for the distribution of the company's 1998 profit.
 |
