More automotive sector profits go abroad

SLOVAK companies receive only a small portion of the total revenues and profits generated by the automotive sector in Slovakia.

(Source: Sme)

As much as 99 percent of profits end up abroad via international companies, the analysis by the Indexpodnikatela.sk website suggests.

Most of the companies active in the sector have domestic ownership. About 61 percent of companies with Slovak owners are active in Slovakia, compared to 39 percent owned by foreigners. The biggest portion of Slovak firms are limited liability companies (317), followed by self-employed (193) and joint stock companies (31), the TASR newswire wrote.

The biggest driving force in the automotive sector, based on the revenues and profits of the individual firms active in the sector collected between 2009 and 2014, are big international companies with direct foreign investments. Slovak firms generate only a small portion of the total revenues and profits.

Profits of the international companies in fact go abroad. Regarding revenues it is 99.7 percent, while the share of profits is 99 percent, TASR wrote.

“Altogether more than €453 million is generated by foreign companies, which is a huge difference compared to profit of some €1.4 million of Slovak firms,” Branislav Vaculčiak of Indexpodnikatela.sk said, as quoted by TASR.

The difference could be even higher if another foreign carmaker really comes to Slovakia.

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