Prague  - Czech carmaker Skoda Auto AS, a division of Germany's Volkswagen AG, said Wednesday the company saw its profit and revenues decline year-on-year in the first half of 2008, as a consequence of the firming Czech koruna.

Skoda's net profit plunged by 9.4 per cent to 7.15 billion koruny (472 million dollars) in the first half year compared to the same period in 2007, while the revenues were down
1.6 per cent year-on-year to 111.7 billion koruny (7.4 billion dollars).

In the same period however Skoda, the country's largest exporter, delivered clients over 366,000 cars, an increase of nearly 18 per cent compared to the first six months of
2007.

Skoda board member Holger Kintscher said that the speedy appreciation of the Czech currency caused the automaker to lose some 2.3 billion koruny (152 million dollars) year-on-year in the first six months.

"The situation is difficult. The Czech koruna's developments are becoming another important risk factor in addition to the traditional unfavourable external factors" such as oil and steel prices, he said in a statement.

The koruna has firmed to euro by some 20 per cent and to dollar by around 30 per cent within the past year.

Analysts say that its appreciation is no longer grounded in the Czech economy's performance and has been fueled by speculation.

The Czech currency broke another set of records Monday but has cooled Wednesday, trading in the afternoon for 23.79 koruny per euro and 15.14 koruny per dollar, according to Patria brokerage website. (dpa)