Arcom estimates 47m-euro turnover

Bucharest-based construction company Arcom expects a 5-10% turnover increase this year, to around 47 million euros.
“This year, we are expecting a 5-10% increase in turnover, mainly because we are trying to limit our exposure. There will be additional costs in connection with EU accession and in creasing competition from foreign players,” stated Florian Florescu, Arcom’s financial manager.
The company posted approximately 41 million-euro turnover in 2006, up 10% against the previous year, according to preliminary results. “In a month’s time, there will be a general meeting of shareholders, where our strategy for the next few years will be decided,” explains Florescu.
Last year, the company invested around 3 million euros in acquiring new equipment, pumps and cranes. The growth of the construction market has prompted companies to invest massively in acquiring hi-tech equipment and other new construction technologies.
Bucharest-based Arcom posted 17.5 million-euro turnover in the first half of last year, up 9% against the same period in the previous year.
The profit rate amounted to around 1.9% in the first six months of the year, while Arcom had budgeted 2.15% profit for the whole of 2006.
Before the 1989 revolution, Arcom was the main exporter in the Romanian constructions industry, however, later witnessing a heavy slump in orders from abroad and the loss of its traditional export markets in both the Middle East and North Africa.
Currently the company no longer has any contracts with foreign countries, as they are seen as being non-profitable, but operates many building sites in Romania, according to Arcom officials.
Arcom has gradually shifted its interest towards the domestic market and towards partnerships with foreign companies. Among the most important projects handled by Arcom last year were the Central Park and the Red Dragon shopping centre, projects developed by the Niro group, the construction of facilities for the pharmaceuticals company LaborMed in Bucharest and environment works funded through SAPARD and SAMTID.