ECONOMY

Strong euro hurts Mytilineos profits

Metals and engineering group Mytilineos said yesterday nine-month profit dropped 92 percent, hurt by the rising cost of oil and a strong euro. Mytilineos, a major Balkan producer and trader of aluminium, zinc and lead, posted net profit of 15.3 million euros, down from 193 million euros in the same period a year earlier. Sales rose 10 percent to 734 million euros. The company estimated the euro’s strength made a 65-million-euro dent in turnover. «The consistently high level of oil prices to an all-time high… led to increases in the prices of many raw materials used in the production process as well as to increases in shipping and transport costs,» Mytilineos said. Subsidiary Metka, Greece’s biggest builder of power plants, said that its net profit had risen 5.2 percent to 30.3 million euros, while sales grew 38 percent to a total of 299.1 million euros. Its order backlog stands at 1.5 billion euros after Mytilineos recently signed a power production agreement with refinery Motor Oil. Mytilineos will pay 59.5 million euros through a share capital increase to acquire a 65 percent stake in Corinth Power, which has a license to operate a plant to be built near Corinth, and which is 35 percent-owned by Motor Oil. (Reuters, Kathimerini)