According to Promet Group, the higher profits result from better corporate governance and the fact that we have managed to ensure the continued production of important companies in the automotive sector. “Despite the pandemic, Tatra Trucks was one of the few who stopped production in 2020 and managed to meet production plans and customer commitments with the production of 1,181 vehicles,” says the annual report. Another company from the holding, the manufacturer of semi-trailers and trailers, Stecomtra, did not have to stop production.
Not all of the effects of the pandemic have been eliminated. The shutdowns of most mechanical engineering companies have reduced demand for raw materials, which are processed and sold by Promet’s metallurgical division. This was also the main reason that sales fell by 15 percent to 6.6 billion crowns last year.
Electromobility: what are the EU and the world’s plans?
Despite the problems associated with the corona crisis, Promet wants to increase its profits again this year. “Before the start of the year, we conservatively estimated that EBITDA would grow by around ten percent. So far everything indicates that we will succeed in fulfilling the plan, ”said Denisa Materová, Marketing Director of the Promet Group, daughter of the group owner René Matera.
Compared to last year, they think the engineering department is doing well, relying on newly started contracts that have been put on hold due to the pandemic. Metallurgy, on the other hand, is getting into an increasingly complicated situation due to the high input prices. “In terms of operating costs, this is the greatest turbulence in our business in thirty years,” said Materová.
Forbes magazine placed the Promet group in fifth place in this year’s ranking of the largest family businesses in the Czech Republic. At the head of the engineering group, Matera has a longstanding collaboration with the industrialist Jaroslav Strnad, the founder of the Czechoslovak group that holds the majority in Tatrovka. Now he plans to expand into Croatia, where both businessmen are trying to control the debt-laden engineering company Đuro Đaković.
In addition to Tatra Trucks and Stecomtra, the Promet Group also includes Tawesco, which supplies press and welded parts for automobile manufacturers, and Kofing, a manufacturer of steel structures.