Azomures profits plummet despite $100m sales

Chemical fertiliser producer Azomures Targu Mures in the first half of this year registered 12% higher turnover in nominal terms, but more than 70% lower profits. In the first six months of this year the company sold chemical products, particularly fertilisers, worth 3,321 billion ROL (100 million dollars), from which it saw gains of 132 billion ROL (4 million dollars). Unlike last year, the company no longer benefited from subsidies granted by the state for the acquisition of fertilisers by small farmers. Moreover, the price of natural gas, accounting for above half of fertiliser production costs, has continued to grow. Azomures has managed, however, to raise its sales on the basis of exports, which climbed by over 35% in terms of volume, amid a global increase in prices for urea-based fertilisers. In 2003 the company entered the US market exporting URAN (a liquid fertiliser used in special conditions). The fertiliser producer was hit by the evolution of the US dollar/ROL exchange rate, which was relatively stable, amid inflation of more than 12% over the last 12 months. ZF