Electroprecizia sees profit shrink

Engines and electric equipment producer Electroprecizia Sacele last year posted a net profit worth some 5 million RON (1.38 million euros), a 33% drop in euros compared to the net profit seen in 2004. The profit drop was due both to the unfavourable trend of the exchange rate of the euro, as well as to the increase in the price of utilities and raw materials. The company”s turnover for last year stood at 160 million RON (some 44.1 million euros), a 7% drop in euros and a 16% one in RON against 2004. Company results, however, stayed within the parameters budgeted at the beginning of last year. “Unfortunately, it appears that 2004 will remain as a benchmark year in the history of the company, given that there is little chance to achieve the profit made in 2004 again. The company”s profit rate has been and still is affected by three factors: the unfavourable evolution of the exchange rate, the price increase for utilities, as well as the increase in the price of copper on the international market,” stated Constantin Zavarache, general manager of Electroprecizie Sacele. The quote of the copper on the international market doubled from 2004 until now, reaching 5,800 euros per tonne. Copper is one of the main raw materials needed in the production of engines and electric equipment. ZF