Cristian Secosan, former general manager of E.ON Furnizare (E.ON Supply), who took over the local subsidiary of German industrial group Siemens on July 1, expects the company’s turnover to stagnate this year, after years of posting double growth compared with the domestic economy.
"We had planned a significant rise at the beginning of the year, in line with predictions on the economic growth in 2009. We usually look at the GDP growth, double it and that’s our target. Under the current market conditions, these forecasts have been modified and I think we will end the year with a level similar to last year’s, amid a 5% decline in new orders," says Secosan, CEO of Siemens.
The group’s Romanian turnover last year exceeded 300 million euros, around a third of which is accounted for by Siemens SRL. The rest originates either from the German group’s production facilities or from contracts secured by other Siemens entities with Romanian-based companies.
"We have a very extensive portfolio of orders, in major sectors such as energy, health and transport. These are long-term contracts and can ensure business stability, although this year has seen a decline in new orders. Long-term orders soften the blow of recession," Secosan adds.
According to the Siemens official, the biggest order drops have been recorded in constructions and industry. Orders from the energy sectors have not matched last year’s level, either.
"For instance, on the overall market, demand from the steel industry is half of last year’s level," says the new Siemens CEO.
According to Secosan, if the economy does not recover, the business he runs could shrink. Several top-ranking executives said last autumn that the effects of the recession would worsen, especially because of the politicians’ unwillingness to make unpopular decisions in a pre-election period.
"I don’t think the Romanian economy will recover in 2010. It will get to zero at best. What people don’t understand is the impact the crisis has on small companies, which are the most likely to be hurt. Multinationals are able to hold out, but if a constructor, for instance, goes down, it drags 20 smaller companies with it. We should be able to grasp how this whole structure works in order to see where solutions can be found," says Secosan.
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