OREANDA-NEWS. June 02, 2015. Taking into consideration a sharp drop of Russian Ruble rate in relation to Euro (RUB/EUR) that provides its adverse affect in 2014, all first quarter of 2015 year  the management of concern provided renewal of sale agreements with buyers of the Russian market to currency of euro in contracts. Furthermore since 2015 there is no more exchange rate risk.

For the period of renewal of agreements of delivery of goods to the Russian market were suspended and renewed only at the end of the quarter.  As a result of it net turnover for the first quarter 2015 was only EUR 2,4 mln., and  also is planned to reach  the net turnover near EUR 20.mln. in 2015.

The first quarter of 2015 concern closed with profit EUR 1 622 after tax.

With the purpose to provide financial stability of concern the Board of JSC “Riga electric machine building works” has approved an arrangement of measures that provide optimization of all costs. This plan was reduced to practice in the first quarter of 2015. This arrangement of measures forecasted all types of costs, including reduction in the number of employees till  35% - 50%.

Dismissal of employees took place at the initiative of their and with the permission of the employer. Compensation was paid to the dismissed employees at the amount of EUR 0.7 mln.

Generally for 2015 is planned to get profit not less than EUR 0,5 mln.