The Slovenia Times

Elan With Profit in 2014


The company had finished 2013 with an operating profit but posted a net loss of EUR 1.8m due to high interest expenditure.

Korošec said the return to profit was "a turnaround that is crucial for key stakeholders as well as the employees".

He attributes the trend to the effects of restructuring, new projects and the penetration of new markets.

The boat segment in particular buttressed the bottom line last year, as sales figures rose 40% year-on-year.

Ski sales, which account for about half of group revenue, were up 6%, according to Korošec.

Elan has an own-brand global market share in skis of 8%, a figure that rises to 12% if skis produced for other brands are included.

With the global ski market largely stagnant, the company has been leaning heavily on other segments, in particular equipment for gyms and sports halls, and wind turbines.

Korošec said Elan had become a global player in the market of stands for sports halls, and "things are looking up" in the wind energy segment.

As for 2015, Korošec said he was "optimistically conservative" given the changing business environment and all adverse risk factors.

Chief among them is the privatisation of the company, which has been dragging on for several years.

While the procedure is managed by the state-owned majority shareholder, chief executive Andreja Košir said they wanted an owner "that will continue developing Elan".

"The long procedure affects our business. Uncertainty also affects our partners, who think twice before increasing the scope of business with Elan," she said.

Elan was supposed to be privatised by the end of last year or face the prospect of paying back EUR 12m in state aid.

A month ago the European Commission threatened to send the company into bankruptcy if state aid is not repaired, but it is yet to take action.


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