PHS might alternatively remain independent after recording profit

PHS might alternatively remain independent after recording profit

Polish steel mill PHS announced that it has decided to stand alone if its future privatisation collapses. Company authorities stated that PHS would convert its Zloty 2 billion debt with state owned companies into shares. Therefore, the company seeks for an investor who would convert the liabilities into shares. PHS reached this conclusion after the company has posted its first operating profit since it was set up a year ago. Furthermore, the company is also expected to identify the winning bidder for the privatisation soon. LNM Holding and US Steel, the bidders, have submitted improved offers for PHS last week. PHS has reported a net profit of Zloty 12 million (approx. $3 million) in May with Zloty 634 million revenue due to better prices in domestic market and the favourable Zloty exchange rate against the Euro. However, PHS has still Zloty 71 million loss in the five months of 2003 against a Zloty 259 million loss for the same period a year ago. The company has announced its sales as Zloty 3 billion in the first five months of the year with an 14% increase compared to same period last year.