How Gehrig Schultz turned Prospectiuni around in eighteen months

Gehrig Schultz, the American whom businessman Ovidiu Tender put at the helm of Prospectiuni Bucuresti (PRSN), his most important company, a year and a half ago, says he has so far tried to cut costs to the minimum and has laid the groundwork for the company’s expansion abroad, and will further focus on personnel rejuvenation. In the first few months after his appointment, Schultz cut personnel by around a third, with the effects of the moves being visible as late as this year. The company’s total number of employees now revolves around 1,900, from almost 3,000 in early 2008. However, restructuring has not ended, with the manager now turning to the next stage, of renewing the highly skilled personnel. Schultz also says each operation of the company was restructured to become profitable and to maintain this profitability during the entire year. Under the American’s management, Prospectiuni turnover soared by 80% last year, to 225m RON (53m euros), while net income climbed to 40.7m RON (9.6m euros), after weaker figures in 2008. Schultz’s target is for the company’s foreign operations to come to account for 30-40% in the value of turnover, from around 10% last year.