Annual Report 2004

Ž E L E Z I A R N E P O D B R E Z O V Á ANNUAL REPORT 2004 34 REPORT BY THE BOARD OF DIRECTORS The income achieved in 2004 by Železiarne Podbrezová a.s. is appreciable. Difficult conditions in the purchase of raw materials necessary for production negatively influenced results of the first quarter of 2004. Foresight in the sales strategy in various territories and using the extraordinary boom in metallurgical industry brought expected profitability in the following quarters in 2004. As in each year since 1995 Železiarne Podbrezová achieved profit. Experienced staff headed by experienced management resulted in a taxable profit of SKK 222,323 thousand, as shown in individual financial statements, confirmed by an auditor's opinion. Subsidiaries and associated companies considerably contributed to the total income of Železiarne Podbrezová. The final consolidated figure in 2004 was SKK 282,350 thousand, of this Železiarne Podbrezová's share as the consolidated unit amounts to SKK 329,931 thousand and share of minority interest represents a loss of SKK 47,581 thousand. Years of prosperity provide a guarantee in the region for the performance of medium and small entrepreneurs. The jobs and steady income provided by Železiarne Podbrezová a.s. and by its subsidiaries, create encouraging social background in the district of Brezno. The Board of Directors of Železiarne Podbrezová a.s. wish to hereby express their sincere gratitude and appreciation to all colleagues contributing inevitably to the year's achievement. Also we would like to extend our thanks to our suppliers, customers, banks and financial institutions and to all our business partners for this co-operation. We wish to resume our satisfying mutual relationship. Thank you for your trust. Podbrezová, May 2005 Approved by the decision of the Board on 28 April 2005 Conclusion