IAR Ghimbav may distribute a dividend of 0.215 lei/share

Even though it hasn"t published the proposal concerning the distribution of its net profit, IAR Ghimbav may end up being forced to distribute 90% of its earnings for the year 2010, according to the documents in effect.

The company of Braşov last year had a net profit of 4.53 million lei, up 67% compared to the earnings of 2009, as turnover fell 58%, to 59.4 million lei. Under these circumstances, the company will be required to pay out dividends amounting to 4.07 million lei, or a gross dividend of 0.215 lei/share.

The management of IAR Ghimbav has budgeted a gross profit of 3.517 million lei this year, down 21.8% over last year"s figure of 4.5 million lei, according to the Revenue and Expense Budget posted on the company"s website.

The company expects its total revenues to fall 20.7% this year, from 70.219 million lei to 55.688 million lei.

Operating revenues are expected to fall just 7.2%, from 59.119 million lei to 54.838 million lei, whereas the financial revenues are expected to fall 92.3%, from 11.1 million lei to 850,000 lei.

The company"s expenses are also forecasted to fall 20.6%, from 65.719 million lei to 52.171 million lei, the documents states.

Labor productivity is expected to increase this year, according to the revenue and expense budget, from 193,000 lei to 210,000 lei/worker (more than 8%), since the company went through two stages of employee reorganization over the last two years. The average monthly wage per employee is also expected to increase 3.2% this year, from 2,996 lei to 3,092 lei, as the wage bill was reduced 26.9%, from 12.697 million lei to 9.282 million lei.

The Ministry of the Economy holds 65% of the shares of the company of Braşov.