URB: flat euro brings losses

Bearings producer URB Suceava in the first nine months of this year registered losses standing at 0.4 million euros, 0.2 million euros more than in the first six months. The firm’s nine-month turnover reached 3.6 million euros, 50% higher. The losses were generated by the low level of export revenues caused by the stagnation in the value of the euro against the ROL, as well as by the rising prices of steel used in bearings manufacturing by domestic and foreign steel suppliers, reads the report drawn up by the company. The company’s exports account for 94% of turnover. The company did not made public any 9-month financial results in 2003. The weak euro will further harm the company’s revenues over the following period, but to a lesser extent due to bolstered investments that will raise productivity, according to estimates made by the company’s representatives. The bearings market is estimated at more than 32 million euros yearly, a third of the value registered 15 years ago. The lower market value is due to the lack of domestic demand for bearings, with most producers resorting to exports. ZF