COST once again misses out on H1 profit

Combinatul de Oteluri Speciale Targoviste (Targoviste Special Steel Plant) logged 6.2 million-euro (255.5bn ROL) losses in the first half, over 17% higher in euros compared with the losses in the first six months of 2003.

The H1 turnover rose 33% in euros to 71.9 million euros (2,920.9bn ROL) compared with the 54.1 million-euro sales in the same time of last year.

The company officials did not care to comment on the results.

COS Targoviste also logged 6.3 million-euro (256.1bn ROL) operating losses, 23.5% higher in euros compared with the 5.1 million euro losses in the first half of last year.

Still, the company managed to make financial activity-related profit, worth 4,000 euros (573 million ROL), compared with the financial losses of 159,000 euros in the corresponding period last year. COST made this profit mainly because of interests and foreign currency exchange rate differences.

COST is a subsidiary of the Mechel Steel Group, held by the Swiss trader Conares Trading. Conares Trading in its turn is held by a number of Russian metallurgical companies.

COST manufactures and sells a wide range of products made of alloyed and highly alloyed steels in the form of forged unfinished goods and bars, rolled unfinished goods and laminated products. It is the only producer of highly alloyed steels for tools, and the only manufacturer of forged products, in Romania. Its main clients in Romania are Dacia Renault, Rulmenti Barlad, Subex Bacau, Compa Sibiu, Promex Braila and Ius Brasov.

Most of its revenues are derived from sales on the domestic market, which account for 63% of the total. The plant also exports its products, chiefly to European clients (73% of the total exports). COS Targoviste also exports to the American continent, which absorbs 16% of its exports. The traditional foreign destinations for its products are Germany, the UK, Italy and Spain.

The total output sold in six months stood at 168, 000 tonnes and was worth 68.8 million euros. Exports represent 39% of the value of the total output sold.

The prices of various steels have doubled in the last two years, after a long period of stagnation and even decline. The market growth was primarily due to the massive demand from China, which used up more than one quarter of the 1 billion tonne total global output.
catalin.ciocan@zf.ro