Otelinox profit spiralling down

Profit of the iron and steel plant Otelinox Targoviste dropped 85% last year as compared with 2002, according to the preliminary data released by the company. The plant posted losses in the second half of last year, so the profit reported at the end of December 2003 accounted for 26.5bn ROL, down from 36bn ROL in the first half. However, the company’s turnover maintained close to the previous year’s results in real terms, as the prices on the steel market went up. The plant’s sales totaled 1,150bn ROL ($35m) last year. The company invested in a production unit last year that is not working at full capacity yet, so the profit went down. Otelinox business was hurt last year by the iron and steel global market circumstances that pushed the prices of raw materials up and cut sales. The main suppliers of the plant are Sidex Galati and the Special Steel Plant Targoviste. Otelinox was mainly hurt by dwindling demand on the Asian markets. The company is 75% held by Korean group Samsung, through its German-based branch. ZF