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Dunca Expeditii anticipates 6% profit margin

Dunca Expeditii anticipates 6% profit margin

The company posted 40% increase in business in Q1, 2007 compared with Q1, 2006

18.05.2007, 18:17 121

Dunca Expeditii, one of the leading players on the freight transport market has budgeted 2 million-euro profit for this year, and turnover of 30 million euros.
"We want to increase our profit this year. Although we made three million euros in profit last year, it was not entirely derived from our core business, but also from selling a piece of real estate," says Romeo Dan Dunca, the manager and majority shareholder of the company.
The company posted 40% increase in business in the first three months of the year compared with the same time in 2006. The growth, Dunca says, came as a result of the accession to the European Union.
Dunca Expeditii is on schedule with its targets this year, as the company aims to achieve 30 million-euro turnover. It posted 22 million-euro turnover last year, up about 50% on 2005.
According to the manager and majority shareholder, transporters are facing a serious issue caused by the developments on the labour market, with many truck drivers choosing to work abroad, where they get better pay.
"The need for transportation in Romania has increased, but the workforce has become a problem," Dunca explains.
The growth of the company's business did not occur only because of the transportation operations, but also because of logistics. Dunca started an investment in a logistics centre, of which 30,000 square metres are already being used. The companies that rented space in this storage facility include Procter & Gamble and Interbrands, according to a later statement of Dunca.
Beyond transport and logistics, Romeo Dunca also plans to invest in a ski resort in the Banat Mountains.
"We will invest more than 150 million euros in this resort, but we hope most of the money to come from European funds. I think this area has a lot of potential," Dunca said.
He will not be the only investor in this resort, though. Dunca has said in the past that there will actually be five investors, three individuals and two banks. Dunca Expeditii is an international and domestic carrier, with the two operations contributing almost equally to the turnover. Most international transports go to Western Europe to countries such as France, Germany, Italy and Netherlands.

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