Restructuring cuts Electroaparataj profits

Electrical equipment maker Electroaparataj Bucharest concluded 2002 with 36.4bn ROL ($1.1 million) in net profit, according to preliminary results. Profit dropped nearly 40% in real terms compared with the previous year. 2002 was the sixth year of restructuring for Electroaparataj. The process is intended to boost productivity and cut costs. It has already enabled the company to double productivity by cutting the number of employees. The electrical equipment maker began an investment and restructuring programme soon after privatisation, which reduced the number of employees from 3,865 to the current 1,836 and boosted labour productivity from 4,300 euros/employee to 8,200 euros/employee. Electroaparataj turnover in 2002 remained the same as in the previous year, reaching about $15 million. Sales amounted to 476bn ROL last year. The management says this is the last year Electroaparataj sales will not budge, with the results of the restructuring process expected to start showing next year. ZF