The Slovenia Times

Krka and Gorenje Shares Plummet After Ruble Tumble


Gorenje lost 10.5% and Krka 8.98% in the first 25 minutes of trading but then gained some ground so that Gorenje is now trading at EUR 5.10, 6.85% down on Tuesday's close, and Krka at EUR 52.90, down 6.54%.

Both companies have reported difficulties arising from the fall in the Russian currency with Gorenje speaking of "dramatically" deteriorated economic conditions in the country in a filing on Wednesday.

The ruble fell 34% between 1 and 15 December after it had depreciated by more than 12% in November, Gorenje said in its posting on the stock market web site.

"The depreciation of the Russian currency has a negative effect on the Gorenje Group's revenue from sales in Russia in euro terms, and the currency translation differences have a negative effect on the Group's bottom line," the release reads.

The company "seeks to alleviate the negative effects of the harsh economic conditions in this market on the operations and performance with a variety of measures".

Krka reported yesterday that the depreciation of the ruble was expected to affect this year's group results as the amount of revenue generated on the Russian market expressed in euros is declining.

The company said it was monitoring the situation and adjusting to the latest developments.


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