Otelinox sees profits increase by 75%

Special steel producer Otelinox SA Targoviste derived net turnover standing at 21.8 million euros in the first half of this year, 53% higher as compared to the first six months of last year in real terms.

Net profit registered by Otelinox in the first half of this year stood at 1.75 million euros. The company’s net profit posted a surge of almost 75% as compared to the similar period last year, when Otelinox saw net profit of almost one million euros.

Otelinox’s total revenues reached 22.7 million euros, as compared to 15.7 million euros in the first six months of 2003. At the same time, the company’s expenditures rose by 40%, from 14.5 million euros to 20.4 million euros.

The company’s majority shareholder is Samsung Deutschland Gmbh., holding 74.99% of the company’s stock. Other significant shareholders are Broadhurst Investments Ltd., controlling a stake of 13.03% and AVAS with 5.34%, according to Bucharest Stock Exchange data.

Otelinox stock is listed on the first tier of the Bucharest Stock Exchange, with the benchmark price standing at 124,000 ROL per share. The company’s market capitalisation thus amounts to 32.25 million euros.

The company’s turnover last year registered, in real terms, a level close to that posted in 2002, with prices on the steel market during this period registering an ascending tendency. The plant’s sales last year reached 30.6 million euros. The company produces fine laminates from special steel, as well as sheets and belts made of cold laminated stainless steel.

The company invested in a production hall last year that has not yet reached its full production capacity, deepening last year’s profit slump. In 2003 Otelinox was hit by conditions on the world market for iron-and-steel products, which triggered a rise in raw material prices and a decrease in sales from a quantitative point of view. The main suppliers of the plant are Sidex Galati and Combinatul de Oteluri Speciale Targoviste (Special Steel Plant Targoviste). Otelinox was harmed by shrinking demand on the Asian market last year.
sorin.pislaru@zf.ro