Ilefor: lower costs prompt profits

Targu-Mures based furniture plant Ilefor, a member of Mobexpert group, registered H1 revenues standing at 139.8 billion ROL ($4.2m), down 3.5% since last year. Nevertheless, the company’s net profit increased 13% in nominal terms, to 5.2 billion ROL, according to the first-half report of the company. In the first six months of this year, Ilefor derived total revenues of 144.1 billion ROL, while the company’s net profit reached 4.6 billion ROL. The rise in profit, despite the drop in revenues, was due to a significant cut in operating costs, even though financial costs posted a slight increase. As a matter of fact, the furniture market this year registered improved productivity amid a slowdown in production. Companies were hit by the decline of European markets, which attract the largest part of furniture items produced in Romania. Thus, the furniture industry productivity increased 25% in the first five months of 2003 as compared to the same period of last year. ZF