Business News

Hyundai contract to be signed soon. Energy company CEZ earns record profits. Czech airlines reports substantial losses. CSOB bank sees healthy economic results for 2005. Prague Stock Exchange deploys single index: PX. Distrainers on the rise. Distrainers on the rise. Skoda considering producing five-door Superb.

Hyundai contract to be signed soon

The daily Pravo reported on Friday that Industry and Trade Minister Milan Urban will sign a contract with Hyundai Motor next week about the company's construction of a factory in the North Moravian town of Nosovice. The contract is reportedly worth some 28 billion crowns, or about 1.2 billion dollars and the plant will employ some 3,000 people directly, while indirect jobs created by the plant could top 11,000. This in a region where unemployment is exceptionally high.

Energy company CEZ earns record profits

Czech energy giant CEZ announced a hefty profit this week of 22.3 billion crowns, or almost a billion dollars. The main reason for the record result for a Czech company is the growing price of electricity. Shareholders can be especially happy with the company, as the price of the stock more than doubled in the last twelve months.

Czech airlines reports substantial losses

Prague Ruzyne Airport

Czech Airlines, however, had quite the opposite economic results, reporting a loss of 500 million crowns, or about 20 million dollars. As recently as 2004, the company reported profits of about 13 million dollars, but company representatives say that the rising price of fuel and increased competition caused the carrier's economic results to decline. Unions on the other hand, say that the previous management led by former president and former defense minister Jaroslav Tvrdik is to blame for the losses. Current CSA president Radomir Lasak said that the company has launched a radical restructuring plan to put the company back into the black by 2008.

CSOB bank sees healthy economic results for 2005

The CSOB bank, owned by Belgian bank KBC, reported profit increases of 17 percent this week, totaling about 333 million dollars. CSOB says that the record profit was mostly achieved thanks to increases in both retail and business clients.

Prague Stock Exchange deploys single index: PX

The Prague Stock exchange underwent an overhaul this week, as its two indexes, the PX-D and the PX-50 were combined into one index, the PX. The stock exchange said that the indexes were combined because of their close correlations and similarities. The new index will provide universal and easily understandable information about developments in stocks traded here in Prague.

Distrainers on the rise

Czech courts issued a record number of distrainers last year. A total of 270,480 repossession orders were issued in 2005, up 70 percent from the year before. The Bailiff's Association said that most of these orders come from utilities, municipal police, health insurers and even mass transport companies. Increasingly, the bailiffs are being called in to deal with petty debts.

Skoda considering producing five-door Superb

Skoda Superb

Finally, for all you motorists out there, Skoda Auto is considering a five-door version of its Superb large sedan, which would also include four-wheel drive. The weekly Ekonom reported this week that the car maker is considering producing this car along with the extremely successful Octavia 4x4 beginning in 2008. Skoda Auto recently launched its Roomster MPV and is developing its compact 4x4 Yeti concept as well.