BUDAPEST -- Car parts and farm machinery maker Linamar Hungary Rt increased net profits by 40 percent in 2003 despite exchange rate losses on credits as net sales surged 27 percent, the company said on Friday.
Linamar, controlled by Canada's Linamar Corp. said in its 2003 earning report that it posted unaudited unconsolidated net profits of 298 million forints ($1.45 million) last year.
Net sales jumped to 20.886 forints from 16.466 billion in 2002, with rising car parts sales fuelling a big part of the rise.
The company improved profits despite a 399 million forint deterioration in the financial result caused by the impact of a weaker forint on the company's debt, Linamar said.
"If the forint stays at the current weak levels against the euro, the exchange rate loss on credits will not grow further and the weak exchange rate will have a positive impact on the company's sale revenues and earnings," it said.
The forint traded around 264 to the euro early on Friday.