Romanian heavy machinery manufacturer Kvaerner IMGB, part of the Norwegian group Aker Kvaerner, estimates turnover to grow by 43% this year, due to increased demand for its products on the foreign markets.
"We estimate turnover of 44.77 million dollars (some 37 million euros) for 2005, and an operating income of some 1.4 million dollars," said Florin Antonescu, the general manager of Kvaerner IMGB. "Ninety percent of Kvaerner''s output is exported. Therefore the demand on the foreign market benefited the company through the increase in sales volume, but, on the other hand, the instability of the domestic financial market has caused a substantial erosion of the budgeted profit. Under the circumstances, in order for us to maintain within the budgeted parameters as much as possible, we had to boost this year''s turnover, to the disadvantage of our increasing cash needs," Antonescu explained.
Kvaerner IMGB thus is maintaining its sales growth rate, after having seen a 40% increase in turnover in 2004.
The company posted turnover of 28.4 million dollars (23.7 million euros) during the first eight months of 2005, under the international accounting standards, an increase of 44% compared with the same time last year. Under the circumstances, the operating income of the company was almost three times higher than in 2004, reaching almost 1.08 million dollars (0.9 million euros).
Kvaerner IMGB benefited from an increase in the demand for energy equipment and machinery on the international market. The company exports to China and the US, as well as to European, Asian and South American countries.
"We estimate to sign contracts worth approximately 22 million dollars (18.3 million euros) for the markets in China, India, Canada and the United States. This will see us with 75% of our output capacity for 2006 covered at the end of the year," the Kvaerner IMGB official explained.
Under the circumstances, the company officials estimate total sales of 52 million dollars (some 43 million euros) for next year. andrei.chirileasa@zf.ro
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