More than half of the the 69 industrial companies listed on the Bulgarian Stock Exchange have reported year-on-year declines in net profit for the first quarter of 2008, investor.bg reported on May 7.

A total of 40 companies reported lower profit, although 42 said their sales revenue went up, pointing out a trend for expenditures growing at a faster pace than revenues.

Some companies attributed their sagging net profit to the volatility of raw materials prices on international markets, as well as the inconsistent behaviour of the US dollar versus the euro.

Kurdjali-based Lead&Zinc Complex, for example, blamed its sales decline for the first three months of the year on the falling prices of zinc on international markets.

Inflation and the increase of core raw material prices were the reason for the 0.74 million loss reported by Chugunoleene AD. Last year the company reported a profit of 0.29 million leva in the first quarter of the year.

Balkancar Zarya reported non-consolidated loss of 0.22 million leva, even though sales were up 55 per cent on the year.

Balkancar Record AD reported sagging sales over the increase in prices of metals, fuels and the US dollar devaluation. About 40 per cent of its total output is sold on dollar markets, but its expenditures are both in euro or leva.

Alcomet reported a 16 per cent year-on-year decrease in sales over the ongoing reconstruction and modernisation of its casting and molding workshops.