The unaudited interim report, released on Friday, says that the lower net profit was mainly a consequence of slightly poorer results of subsidiaries.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) at the group level were up by 2.2% to EUR 19 million, while operating profit decreased by 1.2% to EUR 11.2 million.

The Unior group employed 3,051 people at the end of June, which was 121 fewer than at the same point in 2018. The main reason is lay-offs in units in China and Croatia.

The core company, which this year marks its 100th anniversary, generated EUR 91.7 million in net sales revenue, 5.7% more than in the first half of 2018.

Despite a 4.8% drop in the production of forged parts, which are almost entirely supplied to automotive industry, the company's sales revenue in this segment was down only 0.8% to EUR 60.3 million.

Sales in the hand tool segment were meanwhile up by 2.7% to EUR 18.6 million, or 1.8% above the plan.

The largest growth in sales was recorded in the machine manufacture segment, as they almost doubled to EUR 9.9 million.

Net profit of the core company was however down 18% to EUR 5.3 million, which includes EUR 1.1 million in proceeds from the sale of RTC Krvavec, the operator of the namesake ski resort.

Unior's operating profit in the first half of the year reached EUR 5.6 million, or 2% more year-on-year, while EBITDA increased by 3.9% to EUR 9.8 million.