Vítkovice Heavy Machinery


Vitkovice A.S. Cuts Share Capital To Kc 132 Million From Kc 3.98 Billion

Ostrava, North Moravia, Aug 21 (CTK) – Vitkovice a.s. company will cut its share capital to Kc132.8m from Kc3.98bn by reducing the nominal value of all of its shares to Kc10 from Kc300 per unit, the company’s general meeting decided today.


Along with part of retained profits, the money will be used to cover a Kc4.55bn loss for last year.


Some minority shareholders criticised the step.


The loss increased by Kc3.3bn in annual terms. Sales decreased to Kc976.7m from 2016’s Kc1.18bn.


The management attributed the higher loss to accounting operations linked with the performance of subsidiaries.


The general meeting approved the financial results of the entire engineering group for 2016. The consolidated loss grew to Kc5.5bn from some Kc82m in 2015. Consolidated sales totalled Kc8.4bn, a drop of about Kc2.3bn from 2015. The 2016 loss was a result of insolvency proceedings of some units in the group.


Ostrava-based entrepreneur Jan Svetlik is a majority shareholder of Vitkovice a.s. and Vitkovice Machinery Group.