While people may find that thanks to strong crowns spend cheaper holidays abroad, some exports persistently singing me to break my weight. Fuck you for profit. It is also the case of Hradec Králové’s Petrof, which, over 90 percent of its products, develops.
“At the fall of the dollar since the end of the year, our company has been waiting for 10 million crowns, and at the fall of the euro, it has been around 12 million crowns. And as the current situation suggests, these losses do not have to be done.
We want the hope of our politicians that a new citizen has spent on the koruna’s gym, but it is important to realize that in this development we will soon be asking where you went! ” points out Tom Brandejs from Petrof.
They are similar in other places. “The exchange rate of around 25 crowns per euro is on the verge of the company’s profitability,” says Jaroslav Vt, economic director of the Hronov company Wikov MGI, who will supply transmissions to the countries of the European Union and the United States.
Wik’s exports were constantly growing, last year pm exports in euros and dollars accounted for 60 percent of turnover. Strengthening the koruna, therefore, the Hronov society net.
Negotiating a price increase that would compensate for the loss is not easy. “We are dreaming of the exchange rate impact by buying and agreeing on entry prices in euros or dollars. But this floor is very low, ”explains Vt.
The losses caused by a strong crown must also be compensated by the Novomstský seduction of Amman Czech Republic, which is also trying to solve the situation by buying subcontractors abroad.
Petrof had to move to increase prices, to convert payments of supplier invoices into euros and other measures. “We read that in the future these measures may be insufficient. For our Slovak neighbors, let’s just see the transition to a single European currency, ”to Brandejs.
The Association of Exports has been running a campaign for several years, in which the public and its public alerts the importer to the difficult situation. “We did not see a significant reduction in the price of exits and electronics, only the mare of importers and wholesalers increased.
A solid crown, high energy prices, rising wages and the growth of other costs are irreparably reducing the competitiveness of domestic exports, ”said Ji Grund, Chairman of the Association of Exports and CEO of Grund Mlad Buky.
According to the CEO of Atas elektromotory Nchod and a member of the board of the association, export Otto Daka, the export is fighting for hol peit. “I made a model case for a typically Czech company, which develops three quarters of its production into the European Union and buys 10 percent of input materials through imports from the Union.
I have implemented real average exchange rates, inflation and a 3% increase in real wages. Under these conditions, a company reporting a profit of 7 percent in 2004 would be at a loss of 31 percent at the end of this year, if it were a dollar area, the loss would even be 47 percent. It surprises me that exports should have a tactile pulse, ”to Dank.
Therefore, some exports start calling for the fastest possible adoption of the euro, even despite the expected rise in inflation associated with it. “If the Euro is adopted in 2017 and the koruna strengthens in the average trend as in the last five years, the euro will be worth 17 crowns and the dollar 9 crowns, and no one from the export is drinking,” adds Dank.