Business news

TBP profit down to EUR 2.1m after Prevent clash with Volkswagen

Lenart, 10 September (STA) - TBP, the Lenart-based producer of push-pull bowden cables and plastics employing nearly 1,000 people, saw its revenue decrease by 1% in 2019 over 2018 to EUR 63.7 million, while net profit was down from EUR 3 million to EUR 2.1 million.

The company, whose largest single owner through the Prevent group is Bosnian businessman Nijaz Hator with about a 25% stake, got a new management last year, with Stanislav Loncer being replaced at the helm by Danilo Rojko.

Rojko wrote in the business reports that and efforts had been made to meet and preserve goals at levels that secure stability and keep the company competitive. Also, new demanding projects were obtained through the BMW and Brose groups, which are becoming TBP's most important partners.

While pointing to new challenges as a result of Covid-19, TBP explained the 2019 result had been slightly below expectations primarily because of a dispute between TBP's main owner Prevent Holding and Volkswagen.

German media reported a while ago that Prevent allegedly did not accept a lowering of prices and cut off supply, which disrupted Volkswagen's operations and prompted it to start cancelling cooperation.

TBP invested EUR 2.2 million in technological upgrades last year and opened 40 new development projects. At its subsidiary in Mexico, TBP has started setting up serial production for Brose.

While the company originally expected around EUR 68 million in revenue for this year, the Covid-19 situation has reduced the projection to EUR 53 million. A net profit of almost EUR 0.5 million is expected after initial projections of over EUR 3 million.