Export reduction brings about first declines for Arctic

Romania-based Arctic Gaesti, a producer of refrigeration appliances, posted 213 million euros in sales last year, down 5% against the preceding year, according to company information. The decline was in part caused by the 2% drop in exports, to 793,000 units. In 2007, according to the company's reports to the Arcelik group, its turnover amounted to 224.3 million euros (807 million RON). Considering the Romanian central bank's average exchange rate for 2007, Arctic's turnover was 241.8 million euros. "The prohibitive lending terms significantly slowed down the growth rate of the consumer goods sector and influenced the consumers' purchasing behaviour, generating a significant decline in demand," said Monica Iavorschi, Arctic's general manager.

According to company representatives, the home appliances market saw a major decline in the last two months of 2008 - electronics and home appliances consumption saw a 20% decline in November and December. "In this context, Arctic sales went down 16% in the last two months of 2008 against the same period in 2007, which did not, however, significantly affect the overall sales volume recorded in 2008," Iavorschi said.