Zetor reports a 47% profit growth for 1H2013

Despite the negative trend in agriculture, the Zetor group, traditional Czech tractor manufacturer, has managed to raise its consolidated profit before tax, increasing it by 47% year-on-year to the present 200 million crowns. The sale of the newest Zetor tractor models – this year’s novelty Zetor Major and the Forterra HSX model introduced last year, had a significant impact on the positive financial result.

“In the first half of this year, we registered the growth of other indicators, in addition to increasing the consolidated profit. For example, the operating cash flow generation indicator, EBITDA, rose by 13% to more than 270 million crowns at present,” says Petr Veselý, financial director at ZETOR TRACTORS a.s. “The Zetor group’s consolidated revenue reach 2.2 billion crowns, which is an increase of 4% compared to the same period in 2012,” adds Veselý.

“The development of Zetor tractor sales to date indicates that this entire year should be a success for our company. However, given the negative situation the second half of the year may not be as favourable. Be it the floods that have affected a number of farmers, the long winter or the decline in subsidies for the Czech agricultural sector by about one billion due to cost-cutting within the European Union, all these can be factors that will impact the sale of tractors,” says Marián Lipovský, deputy CEO and production director at ZETOR TRACTORS a.s.

Yet despite the market situation, Zetor expects a positive financial result for 2013. “We expect a moderate growth of revenues with a profit of around 300 million CZK for the entire period of 2013,” concluded Petr Veselý.

Towards the end of 2011, there were 811 core employees at ZETOR TRACTORS a.s. and this number has consistently ranged between 860 and 875 in the years 2012 and 2013. The number of job opportunities at Zetor fluctuates in the case of reduced production, related for instance to the fluctuation of demand in the given season or the introduction of a new model. When demand declines and production processes are optimised, employment is reduced by maximally six per cent. Zetor tries to avoid such events by cooperating with employment agencies, in order to have the lowest possible impact on core employees.

Contact

ZETOR TRACTORS, a. s.
Corporate Communication
Eva Prstková
phone: 533 430 251
mobile: 739 327 568
email: eprstkova@zetor.com

Ogilvy Public Relations
Miroslav Toman
phone: 221 998 230
mobile: 603 489 902
email: miroslav.toman@ogilvy.com

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