Refrigerator maker Arctic has posted losses worth 28.8 billion lei (almost one million dollars) for H1, 2001, as compared to the 18.8 billion lei in losses registered in the first quarter of the year. Moreover, the company turnover slumped 30 percent as compared to last year, while stocks increased.
Losses incurred by the sole Romanian refrigerator maker posted no big changes in nominal value as compared to the first half of last year, when total expenditures exceeded revenues by 28.1 billion lei. However, sales dropped, mainly in the department of sold output.
Cumulated turnover derived by Arctic stood at 399 billion lei (roughly 14.5 million dollars) in the first semester, down from 408 billion lei (20.9 million dollars) over the first six months of 2000. In real terms, total sales achieved by Arctic dropped 30 percent.
However, the revenues and expenditures budget of the company forecasts sales worth 37 million dollars for this year, of which only 39 percent were achieved in H1.
The budget also estimates that company profit will reach 538,000 dollars. Over the first six months of the year, output posted a slight increase in ROL, but company problems seem to lie in the commercial department.
ROL-denominated output climbed from 398 billion lei (20.4 million dollars) to 444 billion lei (16.1 million dollars), but it actually dropped in real terms.
Stocks of finite and semi-made products increased two and a half times, to 63.2 billion lei in the first half, from only 25.4 billion lei over the year-ago period.
The price of Arctic shares has maintained the same values lately at the Bucharest Stock Exchange, as transactions were concluded for 800 ROL/share. The year’s peak was attained in February, when one Arctic share cost up to 890 ROL. Afterwards, however, the rate dropped following losses posted on the first quarter.
At the end of May, the price slumped to a record low of 610 ROL/share, but then took a slightly ascending trend. The last transaction concluded last week revolved around the price of 830 ROL/share.
The main shareholders of the company are Societe Generale Romania Fund, with 25 percent of stock, the European Bank for Reconstruction and Development (EBRD), which holds a 31% stake, and Romanian Investment Company Cyprus, with 17 percent.