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Ekranas AB will explore the recovering European electronics market
International Consumer Electronics Trade Fair “IFA 2005“ that took place in Berlin in the beginning of September, as forecasted, became a strong stimulus for the recovering of electronics market.
According to the Chairman of the Board and CEO of Ekranas AB Eimutis Žvybas, three technological lines are currently working in the company producing picture tubes. Forecasts are made that market buoyancy tendencies will keep up in 2006 as well, therefore next year Ekranas AB hopes to work on four technological lines.
Last year 41.9 mill. color picture tubes (CPTs) have been produced in Europe, whereas new products from the technological point of view such as LCD, plasma and projection TVs comprised only about 3,5 mill. pieces or 12 times less than CPTs (source: EECA Market Report, Summer 2005). These tendencies show that vacuum tubes is a technology holding a firm leading position in the television manufacturing industry.
Price and quality ratio of conventional tubes, reliability and effective functioning time exceeds adequate parameters of new technology products.
Therefore it has been announced in the EECA (European Electronic Component Manufacturers Association) Report that CPT is a durable product even in the European market where new technologies are usually rapidly implemented.
In the meantime the demand for CPT increased and the shortage of CPT appears in European market. Due to increased demand and shortage of CPT the important price increase has appeared in the market. Ekranas AB also follows this tendency and will increase the selling prices in the fourth quarter 2005. According to the world and European market commentary a new sales price increase tendency is expected in the first quarter y. 2006.
It is evidential the orders received by the company for the fourth quarter 2005 increased by 43 % compared to the third quarter 2005.
Although Ekranas AB sustained 60.7 mill. LTL (17.6 mill. EUR) loss during the three quarters of this year and reached the turnover of 228,6 mill. LTL 66.2 mill. EUR), the recovering electronics market allows to forecast better results for the fourth quarter 2005 and the year 2006.
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