Construcţii Feroviare Moldova Iaşi, over two million lei in losses

After the first nine months of this year, "Construcţii Feroviare Moldova" Iaşi (symbol CONFM, on the Rasdaq section of the Bucharest Stock Exchange) reported losses of 2.008.684 lei, up from 299.529 lei for the same period of last year.

Meanwhile, the net turnover dropped from 10.228.929 lei last year, to 7.428.716 lei in the third quarter of this year, and sold output dropped at a similar rate, from 9.899.877 lei in September 2007, to 7.197.183 lei for the similar period of this year. Likewise, operating earnings dropped from 13.257.248 lei during 2007"s third quarter, to 11.419.732 lei this year, as operating expenses only dropped 27.144 lei as against the same period of last year, reaching 13.505.108 lei in September 2008. As such, at the end of the third quarter of the current year, the company had an operating loss of 2.085.376 lei, up significantly compared to the amount of 275.004 lei logged in September 2007. In turn, the company obtained a financial profit of 25.582 lei, although in the same period of last year it had logged a loss of 24.525 lei for this indicator. Thus, at the end of the current year"s nine months, "Construcţii Feroviare Moldova" reported a loss of 2.008.684 lei, as a result of the balance between the total revenues of 11.511.890 lei and the total expenses of 13.520.574 lei.

The company"s debts increased significantly, up 26.620.863 lei as against the same period of last year, which can be attributed to the recording in December 2007 of the increases and penalties pertaining to the state budget contributions, amounting to 33.452.016 lei. On September 30th 2008, the company had outstanding debts of 93.020.315 lei, of which 5.502.959 lei towards the suppliers, with the rest being state and local budget debt. The management of the Ia i company consider that the cause of the high level of debt continues to be the low liquidity caused by the overall economic freeze, as well as the poor organization of debt collection from customers.