Czech Pegas Q1 net drops, lags market estimates

...91 million), the company said on Wednesday.

Five analysts polled by Reuters had forecast a 42 percent drop in net profit to 3.68 million euros, mainly due to a weakening of the crown versus the euro which affects the valuation of the firm's foreign debt, though not cash flow.

In the first quarter of 2006, the firm posted a net profit of 6.37 million euros.

Operating profit excluding the impact of currency moves and interest rate swaps rose by 5 percent to 7.83 million euros, above the market expectation of 7.33 million. Revenues reached 31.34 million, compared with a market forecast of 29.89 million.

[PRAGUE/Reuters/Finance.cz]