Electrical and electronic equipment maker Electromagnetica Bucharest ended 2003 with 38.5bn ROL (one million euro) net profit, twice the level posted in the previous year. Its shares have been among RASDAQ’s stars in terms of price growth since early this year. The company’s profit, however, is much lower, even if compared in nominal terms, than the profit registered in 2000 and 2001, which was in excess of 90bn ROL. The profit decline is due, as the management says, to the decreasing telecom market, which forced the company to shift focus to lower profitability products. Its clients include RomTelecom, SNCFR, Electrica and MobiFon (Connex). Electromagnetica’s turnover last year amounted to 501bn ROL ($13 million), up more than 50% in nominal terms from 2002. Electromagnetica in 2003 decided to buy 75% in telecom equipment maker Emcom SRL from Siemens AG (Germany), i.e. the stake it did not hold in that company. ZF
Intl Leasing in the black despite loan
Although it paid 42% interest rates last year for the ROL-denominated bond issue released in 2002, International Leasing still managed to conclude 2003 with 3.5bn ROL net profit, three times higher than the year before. International Leasing’s bonds worth 15bn ROL were issued two years ago and bore a 42% fixed interest, which seemed natural back then but is now more than double the rest of the interests on the market. The effects of the high interests were partly offset by ROL’s depreciation against the euro, the currency used to calculate the funding provided by the company. International Leasing’s profit growth occurred against double revenues, which crossed the 400bn ROL threshold last year, compared with 201bn ROL the year before. Receivables were worth 514bn ROL at the end of last year, while debts reached 635bn ROL. ZF