Electrocontact Loses 679,000 RON In H1

"Grupul Industrial Electrocontact" SA - Botosani, a designer and manufacturer of electric distribution and control equipment of low and medium voltage, has planned for this year overall revenues of 19,439,410 RON, overall expenses of 17,807,665 RON and a net profit of 1,370,666 RON. For the first six months of the year, the company reported a turnover of 6,071,179 RON (7,109,537 RON in 2006), operating revenue of 6,694,774 RON (7,910,909 RON), operating expenses of 7,346,373 RON (7,875,132 RON) and operating losses of 651,599 RON (35,777 RON profit) and net losses of 679,462 RON (15,862 RON net profit). At the end of June 2008, debts amounted to 2,591,339 RON due in less than a year. Receivables totaled 3,367,086 RON.

800,000 RON Invested In 2007

In 2007, the company bought farming land, buildings, equipment and machinery in the amount of 800,000 RON. At the end of 2007, the overall value of tangible assets reached 528,221 RON. For this year, the investment budget is 748,799 RON from equity.

479,000 RON for Research - Development

Electrocontact SA - Botosani allocated 354,259 RON for research and development last year and is planning to spend 479,419 RON for the same purpose this year. Of this budget, 309,457 RON will be spent on assimilating new products and 192,627 RON for certification and tests.

Suppliers, Customers

Over 95% of the necessary raw materials come from domestic sources, with the leading suppliers being ALRO - Slatina, ArcelorMittal - Galati, The State Mint - Bucharest, Sinterom - Cluj Napoca, Baduc - Bucharest. The main customers are CNE - Cernavoda, Electrica SA - Bucharest, EON Moldova, CEZ Oltenia, ENEL Dobrogea, ENEL Banat, ArcelorMittal - Galati, ArcelorMittal Tubular Products - Roman, TMK - Resita, Petrom - Bucharest, Oil Terminal - Constanta, Damen - Galati and RATB - Bucharest.

Productivity: 72,291 RON/ Employee Per Year

Last year, the company operated with an average of 197 employees (224 in 2006) and spent 3,802,016 RON for this purpose (3,895,273 RON in 2006), of which 2,929,705 RON for salaries and indemnities (2,985,243 RON in 2006) equal to 24.84% of the operating expenses (23.36% in 2006). Labor productivity was 72,291 RON per employee per year (70,976 RON per employee per year in 2006).