Furniture industry group Elvila, controlled by businessman Viorel Catarama, will end this year with a 20% decline, a trend that is in line with the company’s worst case scenario.
“The year 2009 brought a collapse of investments in the construction sector, which directly affected demand for furniture from consumers, so that after analysing the first six months’ sales, they were down 12% compared with last year (…). Without overlooking the financial situation anticipated for 2010, we estimate a 5% decline in sales compared with this year,” Elvila officials said. Catarama is among the most pessimistic entrepreneurs, seeing an economy decline of up to 5% in 2010.
In 2008, the group posted 115 million-euro turnover, so that taking into account a 20% decline, the turnover should stand at 92 million euros. The 5% drop anticipated for 2010 would drive the business of the furniture manufacturer and retailer to less than 90 million euros, i.e. 87.4 million euros.
The group controlled by Catarama has about 1,500 employees after having made 5% redundant. Elvila will continue restructuring in 2010, when it makes another 5% redundant.
“The best case scenario is that in which the real estate market will see a rebound, financing for real estate complexes will be unfrozen, consumers will be able to buy new homes and thus the furniture market will be unfrozen, too,” the representatives of the company said.
As far as 2010 is concerned, the trends shaping up for the furniture industry include 5% decline sales volumes, slight improvements in profit margins because of a better cost control, as well as takeovers of ailing factories.
The furniture market, put at some 1.13 billion euros in 2008 could reach 960 million euros this year and approximately 910 million euros in 2010. Over the last few years the industry has gone up slightly mainly driven by the high number of residential and office buildings started.

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