Rulmentul Brasov cuts losses in Q2

Rulmentul Brasov, a ball bearings manufacturer, logged net losses of more than 1.73 million euros (6.3 million RON) for the first six months, compared with 135,000 euros in the corresponding period in 2004. The Brasov-based manufacturer still managed to halve its losses in the second quarter, after seeing them amounting to almost 1.2 million euros (4.2 million RON) in the first three months. Sales increased by some 12% between April and June to reach 9.8 million euros, compared with 8.7 million euros in the first quarter. The company turned over 18.5 million euros (67.9 million RON) in the first half, almost the same as in the corresponding period for 2004, but around 15% lower than the level set in the spending and revenue budget. The main reason for the poor results was the failed privatisation process and the uncertain situation at the moment. These have led to changes in relations with suppliers, which reduced the amount of loans to Rulmentul, and changes in customer behaviour, who have reduced their orders, information supplied by the company to the Bucharest Stock Exchange shows. ZF