Danubiana in the red

Tyre producer Danubiana Popesti-Leordeni, a member of the Tofan Group, reported first-half losses of 23.8 billion ROL, against a 656.6 million ROL net profit set in its S&R budget for the above-mentioned period. The company’s revenues totalled 569.7 billion ROL, accounting for 92.4% of the S&R target for the first six months, the company’s half-year report shows. Total expenses on the other hand amounted to 593.4 billion ROL, as compared to an anticipated level of 615.8 billion ROL. The company’s negative results are accounted for by the company’s inability to carry its manufacturing programme through, as well as by circumstantial factors such as the increase in the prices of raw materials and imported materials above the previously projected level (30% for natural rubber and 20% for synthetic rubber) and the unfavourable trend of the ROL/EUR exchange rate. Late charges, as well as penalties owed to budgets, special funds and to some suppliers following the untimely payment of obligations were yet another factor, the half-year report specifies. Danubiana’s management has recently estimated that the company would end 2003 with net profit worth 10.3 billion ROL, against the 67.4 billion ROL losses in 2002 and the 133.2 billion ROL losses in 2001. “Upbeat projections have not become reality, and outlooks for the end of this year are not too encouraging, either (…) We hope that by the end of this year we should be able to cut as much of the accumulated losses as possible,” said Ioan Apostol, Danubiana’s general manager. ZF