ZF News

3 nov 2009 Ziarul Financiar

EnergoBit Cluj sales up 20%, to 75 million euros

Cluj-based EnergoBit group, one of the leading electrical equipment manufacturers on the Romanian market, posted an around 75 million-euro turnover in the first nine months of the year, up 20% against the same time last year. In the January-September period of 2008 EnergoBit recorded 63 million euros in overall sales. "EnergoBit's turnover is following the upward trend predicted at the beginning of the year. Works contracted back in 2008 continue to support our group's sales, so by the end of 2009 we will achieve our budgeted turnover," Ionut Barsan, marketing manager of EnergoBit, told ZF Transilvania. The management of the EnergoBit group expects an around 96 million-euro turnover for the group, up 20% against last year. In 2008 the EnergoBit group had 80 million euros (280 million RON) in overall sales, with the gross profit rate amounting to 10%. EnergoBit contracted works to modernise the electrical facilities in Sfantu-Gheorghe and Gadalin, and to implement an automated distribution system at electricity producer and supplier Electrica Transilvania Sud. The management of EnergoBit Cluj announced in the first part of the year it was conducting a 30 million-euro investment in building a wind farm in Tulcea county, whose completion is expected in 2010.

Head of Erste: We are covering non-performing loans from operating profit

The worst of the crisis is behind us, but this does not mean things will improve significantly in the time to come, amid a continued rise in unemployment in Eastern Europe, putting further pressure on banks' credit portfolio, says Andreas Treichl, CEO of the Erste Group, majority shareholder of the BCR, Romania's largest bank. "We had three consecutive quarters of positive results and we feel that no matter how long the crisis is going to last - and we believe the worst is over, which does not mean is going to get good - our model is perfectly fit to cope with a crisis like that because we have a huge deposit base and because we finance all our commercial loans with client deposits," Treichl told CNBC channel. The head of Erste admits the bank he runs is under increased pressure from non-performing loans, which had the bank's provision expenses skyrocketing, but says the bank' operating income still allows it to cover these costs and make profit for its shareholders. Erste posted a 730 million-euro net profit nine months into the year, down 16% on the same time in 2008.

Dacia exports rise by 500m euros

Automobile Dacia exports amounted to around 1.5 billion euros in the first three quarters of 2009, exceeding by more than 1 billion euros the exports recorded in the similar period of 2008, aided by demand from Western European countries. Sales were calculated considering 180,000 exported cars (a 50% rise against January-September 2008) and an average value of sales of 8,000 euros. "2009 is much better from all points of view. November is covered in terms of orders and production, and in December we are also considering our obligations to employees, who have to get days off for the days they worked extra," said Constantin Stroe, vice-president of Dacia. Dacia exports accounted for 85% of production of the Mioveni plant at the end of September. The rise in production and in exports has been driven starting in March by demand on Western European markets such as Germany, Italy and France, as a result of car scrappage schemes.

One billion euros evaporate from transportation market

The Romanian road transportation market, which includes more than 71,000 firms, will see its value down by around one billion euros following the reduction in volumes transported, amid pressure from competitors on transportation fees and competition from airlines to passenger transporters that carry passengers on international routes. According to statistics released by the National Union of Road Hauliers (UNTRR), in 2008 the cumulated turnover of companies in the sector amounted to 4.2 billion euros, with around three quarters of it being accounted for by the goods transportation sector. "The markets of road transportation of goods and passengers will decline by at least 20-30% against 2008. Goods transportation, which accounts for the larger share, is now undergoing a decline both on domestic and on international routes," said Radu Dinescu, UNTRR secretary general. Based on a UNTRR estimate following a survey conducted among members, the value of local transportation will fall by at least 840 million euros at the end of the year.

Murad lays off half of employees of 4-star hotel Phoenicia in Bucharest

Lebanese businessman Mohammad Murad, president of Perla Majestic group, laid off almost half the employees at the four-star hotel Phoenicia in Bucharest, amid a 40% turnover decline in the first nine months of this year against the same time last year. "While the Phoenicia Grand Plaza hotel employed 220 people last year, it now has only 120 staff. The hotel's average occupancy rate was 40% in the first nine months of this year. In October, it rose to 60%," Murad said. Mohammad Murad, 46, controls almost 1,000 rooms in several hotels on the Black Sea coast and 348 rooms in the Phoenicia Grand Plaza hotel. The businessman did not specify what the Bucharest hotel's revenues amounted to this year or last year. The 2008 financial data were not published on the website of the Finance Ministry, but in 2007 the company posted a 10.1 million-euro turnover and a 1.3 million-euro net profit.