Electrocontact, profit down, price up

Electrocontact Botosani, a maker of electrical equipment and electrotechnical products concluded last year with only 12% turnover growth in nominal terms, while net profit was down 36%, according to the preliminary financials released by the company. Inflation in 2003 was 14%. However, Electrocontact’s shares listed on the Bucharest Stock Exchange have gained more than 50% since the beginning of this month. Electrocontact turnover amounted to 139bn ROL ($4.2 million) last year, while profit reached 16.2bn ROL ($0.5 million). The financials released by the company are much better than those for the first nine months, though, when net profit was only 5bn ROL. The main beneficiaries of the products made by Electrocontact are Cernavoda Nuclear Power Plant and carmaker Dacia-Renault Pitesti, while its top competitors are Electroaparataj and Electromagnetica, both based in Bucharest. ZF