Kronospan Sebes sales down 20%

The management of Kronospan Sebes, part of Austria's Kronospan group and a major player on the wood processing market, downwardly revised estimates for 2009, taking into account a 20% sales decline from 2008. "In the first half we saw turnover go down by 20%, but we want the market situation to stabilise by yearend because we already have signals in this regard," said Oana Bodea, communication manager with Kronospan Romania. The company's turnover last year reached 714m RON (194.1m euros), down 8% from the previous year. "The falling production, number of finished housing units, of real estate deals, the tougher lending conditions significantly dented demand on the domestic market, which was also felt in exports. All this hurt furniture producers in different ways, with our clients posting turnover declines of between 20 and 50%," said Bodea. Kronospan representatives say the furniture market decline was also felt by the Sebes-based company, particularly in the first months of the year, but starting the second half of the year the situation improved and the market is following a slightly upward trend.