Investments in automation, outsourcing and the simplification of the manufacturing process due to the introduction of the Logan model helped Automobile Dacia double turnover and start turning a profit in 2005, the company''s vice-president Constantin Stroe said yesterday.
The company announced its financial results for last year yesterday.
Turnover more than doubled to 1.2 billion euros, while the company made a profit for the first time since its takeover at the hands of French carmaker Renault in 1999. The net income amounted to 57 million euros.
According to the data sent to the Public Finance Ministry, the Pitesti-based carmaker had posted turnover of 2.4 billion RON (some 592.6 million euros) and net losses of 296.6 million RON (73.2 million euros) in 2004.
Stroe added that other factors that contributed to good financial results last year were the improvements in labour productivity, as well as the export of completely knocked down kits to the plants assembling Logans abroad.
Dacia''s vice-president specified that exports contributed 348 million euros to the turnover in 2005, 300% more than in previous years. Sales of spare parts amounted to 122 million euros, accounting for 9.8% of the turnover.
Operating income reached 56.8 million euros, which accounts for 4.73% of the turnover. The net income after tax amounted to 57 million euros, 4.75% of the turnover.
Investments stood at 157 million euros, with total investments since the time of privatisation up to the end of last year reaching 630 million euros.
At the same time, Constantin Stroe stated that Automobile Dacia could revise the prices of the models it sells in case the domestic currency maintains its appreciation trend and reaches around 3.4 RON/EUR.
"If the euro goes below 34,000 ROL, then we have a problem and we will have to revise prices," Stroe said.
Automobile Dacia
* Turnover in 2005 stood at 1.2 billion euros
* Posted a profit for the first time since takeover by Renault in 1999
* Net profit amounted to 57 million euros compared with a 73.2 million-euro loss in 2004
* Exports contributed 348 million euros to total turnover and were up 300%
* Could revise prices if the exchange rate goes below 3.4 RON/EUR
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