Roman Brasov makes 89m-euro profit on paper in 2004

Truck maker Roman Brasov came out fifth in the ranking of the most profitable companies in 2004, after having posted a 360.7 million RON (89 million euro) gross profit at the end of last year.

The result was possible to attain due to the enforcement of the Emergency Ordinance 115 from October 24, 2003, which exempted the company from the payment of its overdue budgetary debts, of the interests and penalties and of the obligations derived from the loans granted by Banca Comerciala Romana and secured by the APAPS. The accounting revenues made by the company from the striking off of these debts were also tax-exempt.

Larger profits were only made by Ispat Sidex, Orange, MobiFon and Ispat (Siderurgica) Hunedoara. Roman left behind such companies as Lafarge, Metro or Coca-Cola in terms of profit.

The representatives of the company could not be reached for comment on the financial results.

The company posted 7.14 million RON (17.6 million euro) turnover and total revenues of 448.5 million RON (110 million euros) in 2004, after having posted losses in the first half of the same year.

The gap between the total revenues and turnover was due to the accounting revenues the company recorded as a result of having its debts struck off.

Roman posted 8.5 million RON (2.3 million euro) losses in the first six months of this year. It still had 61 million RON (17 million euro) debts at the end of the first half. Roman is held over 90% by Pro Roman. This company is in its turn held by the Brasov County and Local Councils (5% each), Malaysia”s Pesaka Atana, 8%, Universitatea Transilvania (Transylvania University) Brasov, 2%, and Asociatia Pro Brasov (Pro Brasov Association), 80%.