Baltic Export, Latvia, Railways, Transport

In the first quarter of last year, the company’s sales reached EUR 3.6 million.

The group completed the three-month period in 2016 with a loss of EUR 0.96 million compared to loss worth EUR 0.923 million in the first quarter of last year.

During the accounting period the group exported its products to eight countries, the total export volume amounted to EUR 1.8 million, compared to EUR 2.7 million in the respective period last year. The main export directions were EU countries – Estonia, Poland and Lithuania, and the third countries – Russia, Uzbekistan, Belarus.

The big losses are due to the fact that the company was not provided with orders to full capacity. In the first quarter the group implemented costs optimization, reduction in the number of employees and gave up unprofitable activities.

According to preliminary forecast, the group will have sufficient project load during the third and fourth quarters.

As reported, consolidated net sales of DLRR last year was EUR 19.2 million, up four% from 2014. DLRR finished the year with losses of EUR 2.7 million, which is considerably more when compared to the losses the company sustained in 2014 – EUR 1.1 million.

Significant losses are firstly related to the sales agreements in Russian ruble, as well due to only partial work load during the reporting period. Thus, in order to increases the factories economical efficiency, reorganization and optimization of the manufacturing process was performed and cut of operating expenses, the financial report states.

DLRR is the largest company in the Baltic countries specializing in repairs to and modernization of locomotives and rolling stock and manufacturing spare parts for trains.