Amonil's profits shrink

Amonil concluded the first quarter of 2004 with a profit of 10.7bn ROL (266,000 euros), down 82% in nominal terms from last year, when it logged 57.4bn ROL net profit. The financial results of the company show its turnover to have increased 35% in real terms, from 498.5bn ROL last year to 705.3bn ROL (17.2 million euros). The chemical industry is going through a tough time right now, having faced substantial increases in the price of natural gases, the raw material it uses to make chemical fertilisers. Methane gas expenses account for two thirds of production costs. On top of this, Amonil has had to deal with the decline in the price of fertilisers on the international markets. This is particularly damaging, since it exports nearly 90% of its output due to very weak domestic demand. The increasingly difficult situation the plant is experiencing makes a lay-off of 900 of its 1,100 employees more and more likely, an operation postponed because of recent orders over the last four weeks. ZF