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MCG: QII/2011 Business operation explanation
Vietnam Mechanization Electrification & Construction JSC (HOSE: MCG) explained the fluctuation in business result in Quarter 2/2011 decreased compared with Quarter 2/2010:
• The major activities of the company were in construction and engineering. Recently, due the difficulty of the whole economy, the lack of capital works, many works to stop the construction or extension. Therefore, the mechanical construction sales were falling down
• In 2011, price increased higher leading to materials expenses and labor cost, cost of construction machines increased high make cost of goods sold increases, profit decreased
• In 2011, loan bank interest rates higher than 40 percent compared with 2010 leading to financial expenses increased high compared with the same period last year. At June 30, 2011, due to the difficulties of the stock market, MECO must made provision for short term investment by VND17,973 million leading to profit decreased.
HOSE
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