Ductil expects profit decline

Welding electrodes maker Ductil Buzau expects net profit to go down this year, after having seen it rise in the last couple of years. Its 2004 S&R budget anticipates 149bn ROL net profit, down 10% in nominal terms compared with last year, when it amounted to 165bn ROL. The company management says the profit decline will be due to higher costs and to fiscal incentives for exporters being dropped. “Due to the increase in the price of raw materials (steel, nickel, molybdenum and iron powder) higher than the increase in Ductil’s revenues and the low tax for export being dropped, the net profit is estimated to be lower than in 2003,” marketing manager George Lupu stated. Ductil’s turnover should reach 970bn ROL (23 million euros) this year, up 8% in nominal terms from last year, slightly lower than the 9% inflationary rate expected for this year. ZF