Furniture industry group Elvila, controlled by businessmanViorel Catarama, will end this year with a 20% decline, a trendthat is in line with the company's worst case scenario.
"The year 2009 brought a collapse of investments in theconstruction sector, which directly affected demand for furniturefrom consumers, so that after analysing the first six months'sales, they were down 12% compared with last year (...). Withoutoverlooking the financial situation anticipated for 2010, weestimate a 5% decline in sales compared with this year," Elvilaofficials said. Catarama is among the most pessimisticentrepreneurs, seeing an economy decline of up to 5% in 2010.
In 2008, the group posted 115 million-euro turnover, so that takinginto account a 20% decline, the turnover should stand at 92 millioneuros. The 5% drop anticipated for 2010 would drive the business ofthe furniture manufacturer and retailer to less than 90 millioneuros, i.e. 87.4 million euros.
The group controlled by Catarama has about 1,500 employees afterhaving made 5% redundant. Elvila will continue restructuring in2010, when it makes another 5% redundant.
"The best case scenario is that in which the real estate marketwill see a rebound, financing for real estate complexes will beunfrozen, consumers will be able to buy new homes and thus thefurniture market will be unfrozen, too," the representatives of thecompany said.
As far as 2010 is concerned, the trends shaping up for thefurniture industry include 5% decline sales volumes, slightimprovements in profit margins because of a better cost control, aswell as takeovers of ailing factories.
The furniture market, put at some 1.13 billion euros in 2008 couldreach 960 million euros this year and approximately 910 millioneuros in 2010. Over the last few years the industry has gone upslightly mainly driven by the high number of residential and officebuildings started.
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