Fivefold lower profit for Electroaparataj

Albeit it registered sales that exceeded the target it had set for itself at the beginning of the year, Electroaparataj, a producer of electrical equipment and accessories, posted a slump by over 80% in H1 profit against the corresponding period of last year. Electroaparataj ended the first half of this year with net profit worth 4.8 billion ROL, 60% lower as compared to the objective set early this year and 78% lower as compared to the same period of last year, when it registered net profit of 22 billion ROL. The company’s management says the reasons behind the drastic fall in profit include the appreciation of the euro against the national currency, which generated an increase in costs related to raw materials, the decrease in the interests of the placements made by the company, as well as the investments made during this period, which led to higher expenditures. The company’s sales totalled 245 billion ROL (7.5 million dollars), of which exports accounted for one third, with Germany and France as the main destinations. ZF