Ambro posts 3m-euro losses in Q1

Cellulose and paper producer Ambro Suceava has posted first-quarter net losses of around 2.8 million euros (102bn ROL) made from total sales of 11 million euros (402bn ROL), according to RASDAQ data.

“Our operating losses stem from kraft paper production and related activities, and were caused by a lack of wood of suitable quality and high purchase prices on the one hand, and the significant increases in the costs of electricity and methane gas on the other,” the company says. According to Ambro”s quarterly report, not all of these expenses can be recovered from the sale price of the kraft paper.

The company”s paper output fell significantly over the period, from 30,000 to 21,600 tonnes.

This decline in actual company output was due to the decision to stop making kraft paper that was made by Ambro”s board of directors in early March, the company says. Kraft paper manufacturing accounted for 75% of all production. Ambro officials were not available for comment.

Ambro”s total debt reached nearly 50 million euros (1,822bn ROL) by the end of March. The company”s turnover in 2004 reached approximately 54.3 million euros. As well as cutting back on some of its operations, Ambro also laid off three quarters of its more than 1,000 employees. More than 500 of these employees protested against layoffs early in May.

Ambro”s majority shareholder is French group Rossmann through the cardboard packaging manufacturer, Romcarton Bucharest. Ambro”s shares are listed on the RASDAQ and last traded for 23,625 ROL/share, giving it a market capitalisation in the region of 5 million euros.

alexandru.cerchez@zf.ro