Weaker turnover and lower profit for IAR Brasov

IAR SA Brasov registered turnover standing at 367.8 billion ROL (8.95 million euros) in the first half of this year, about 40% lower, in real terms, as compared to the corresponding period of last year. In the first half of 2003, IAR posted turnover worth 544.3 billion ROL (14.5 million euros). Against the first six months of last year, the company reported 70% lower net profits, of 37.6 billion ROL (0.9 million euros). In the similar period of 2004, IAR derived net profit worth 117.4 billion ROL (3.1 million euros). The company’s total expenditure increased by over 30%, to 547.3 billion ROL (13.3 million euros), from 371.2 billion ROL (almost 10 million euros), while its revenues increased a mere 7%, to 585 billion ROL (14.2 million euros). IAR registered profit of about 1.3 million euros from exploitation activities, while the company’s financial losses amounted to 0.4 million euros. The company’s majority shareholder is the Industry and Resources Ministry, which controls a 64.89% stake. The Labour and Social Solidarity Ministry and Broadhurst Investments Limited Cyprus hold 7.30% and 5.09%, respectively, in the company’s stock. ZF