Cuprom: financial losses 11 months out of 12

Cuprom Romania, one of the leading regional players in the copper industry, posted a 380 million-dollar (277 million-euro) turnover in 2007, up by around 84% against last year, according to company representatives. In 2006, Cuprom’s business registered a similar increase and reached 206 million dollars (174 million euros), while net profit increased more than 6 times to 9.1 million RON (2.5 million euros). Cuprom’s operating income doubled last year, but the company’s profitability was affected by financial losses due to exchange rate volatility. “We recorded financial losses 11 months out of 12 last year. These problems are due to the inconsistent policy of the National Bank of Romania (NBR) regarding the exchange rate. The NBR’s policy does not encourage exports. We wouldn’t mind if it also encouraged imports, as long as it is consistent in its actions,” says Horia Simu, general manager of Cuprom Romania. He anticipates the company will register strong growth this year, given the high demand for copper wire in Europe, whilst many of Cuprom’s traditional clients are relocating their production facilities from Western Europe, moving closer to Romania.