Business News

Surprise as Czech growth rates remain high

The Czech Republic is bucking the trend of the global economic slowdown, posting a surprisingly high third quarter growth rate of 4.7%, according to analysts. The figures are a one percent increase on the previous quarter’s figures, while unemployment has also fallen to 5.2 percent – the fall in unemployment is believed to have directly helped the country’s strong third quarter growth figures. However, analysts remain extremely cautious that too much is not read into these figures, noting with considerable certainty that the final quarter’s growth figures will be lower. This analysis is underscored by the Czech Republic’s biggest trade partner Germany formally being declared as in recession this week – something that is certain to filter through to the Czech economy.

ČEZ sees profits hike as prices go up

The Czech electricity company ČEZ has seen profits go up by forty percent compared to last year. The energy giant has announced profits of 41.5 billion crowns for the first nine months of 2008, with the large increase being attributed in part to rising electricity prices increasing the company’s profit margins by 13.4 billion crowns. According to the company’s figures, 7.4 billion crowns was invested in the first three quarters in upgrading and renovating, 3 billion crowns were invested in nuclear power, and 9.8 billion crowns were invested in a wind power project in Romania. ČEZ has yet to announce electricity prices for next year, but has promised to make an effort to limit passing on the costs of higher energy prices onto customers.

Employees of porcelain maker to go without pay

Employees of the troubled Karlovarský Porcelán porcelain maker are to go without pay for the month of October it has been announced. The reasons given are that the company simply does not have the money to pay its staff. The company, which has been placed under bankruptcy protection has been in serious trouble for months, cutting production by thirty percent, and in its words existing on a week by week basis. The latest pay woes underline what many analysts are predicting – that the company may soon be declared insolvent. Karlovarský porcelain is the largest porcelain maker in the country exporting products to over 90 countries and has a history going back to the 19th century.

Prague bourse posts gains after turbulent week

The Prague bourse responded to an upward turn for world markets on Thursday by showing strong gains in early trading of Friday. The PX indicator showed gains of five percent reaching 814 points as markets reacted to similar gains across the world – believed to have been spurred by the progress of the so-called bailout measures undertaken in the troubled US financial and housing markets. The PX index has previously endured losses for three consecutive days. Shares in the media company CME climbed by more than ten percent, while the ČEZ electricity company posted similarly impressive stock value gains of 9.2%.

Czech companies boost image through charity donations

Czech companies have set aside around 750 million crowns during 2008 for charitable spending, according to newly released figures. The Czech electricity company ČEZ tops the table giving more than 470 million crowns, with the Česká Spořitelna bank coming in second, according to data compiled by the Czech Donors Forum. When adjusted as a percentage of company profits, the pharmaceutical company Johnson & Johnson tops the list, with the cosmetics company Oriflame in second place, and the consulting company KPMG in third place.