Oltchim''s net income shrinks

Chemical plant Oltchim Ramnicu-Valcea posted a drop in net income by 70%, to 5.27 million euros (19.1 million RON) in the first nine months of the year, amid an increase in prices for the main raw materials that are derived from petroleum. Oltchim logged net profits of 17 million euros in the first three quarters of 2004. The company”s business in the nine months ended September 30 was negatively influenced by a number of factors, such as a more than 40% increase in the prices of the main raw materials used in the manufacturing process, due to the rise in the petroleum price on the international market, according to the report the company filed with the Bucharest Stock Exchange. The price of the products supplied by Oltchim increased very little in comparison with the raw materials during this period. Oltchim”s sales in the first nine months amounted to 290.8 million euros (1,052 million RON), 16.5% higher than during the same period in 2004. ZF