Romstrade construction company doubles profit despite crisis

Construction company Romstrade in Giurgiu, controlled by Nelu
Iordache, posted a 133.9 million-RON (31.6 million-euro) net profit
last year, double as much as in the previous year, although the
constructions sector fell by 17% last year, thanks to several
contracts won in 2008.
Romstrade’s turnover rose in the context where Compania
Nationala de Autostrazi si Drumuri Nationale (National Highways and
National Roads Company – CNADNR) had a record budget over the last
five years, investing almost 1.2 billion euros for the construction
of motorways and the rehabilitation of national roads. Romstrade
won contracts worth 600 million euros with the state between 2007
and 2009, either in partnership or directly, with the biggest one
being for the rehabilitation of a 148-kilometre stretch of
Transalpina road, a 385 million-euro contract. This rehabilitation
in fact generated the biggest volume of works for the company, with
Romstrade receiving a 140 million-euro loan from Swiss bank Credit
Suisse for funding the works, with the amount being used up last
year.
The Giurgiu-based company posted a 1.13 billion-RON (267.9
million-euro) turnover in 2009, up 14% on the previous year, making
it the biggest construction company on the Romanian market.