Large losses at "Construcţii Aeronautice" Ghimbav

Turnover of "Construcţii Aeronautice" Ghimbav dropped drastically in the first semester, from 2.706 million lei to 1.659 million lei (more than 40%), as the company"s sales shrank from 2.587 million lei to 1.568 million lei.

The losses of the Braşov-based company increased, from 1.485 million lei to 2.317 million lei, as revenues grew from 932,116 lei to 1.662 million lei. Expenses saw a steeper increase, from 2.417 million lei to 3.979 million lei.

According to the report sent to the Bucharest Stock Exchange, these losses stem from the debts that the company was saddled with after it was spun off from IAR Ghimbav and the drastic drop in foreign orders as a result of the world crisis, as Liberty Aerospace, which provided 60% of the business of "Construcţii Aeronautice" Ghimbav, cancelled its orders in April 2009. The company"s American customers cut their orders by 9% this year, with the possibility they might increase their orders next year at the earliest. Another reason behind these losses is the fact that "Construcţii Aeronautice" Ghimbav failed to renew the maintenance contract for the aircraft belonging to the Romanian Aeroclub, the company"s main domestic customer, with which it had a framework agreement valid until 2010.

ICA Ghimbav has accrued 11.236 million lei in debt to the consolidated state budget.

Shareholders of Construcţii Aeronautice Ghimbav have decided that as part of the first stage of the restructuring program, 89 employees would be laid off, with all of them to benefit from compensatory packages according to Government Ordinance 95/2002. As part of the second stage of reorganization, which will occur in spring next year, just like in the case of IAR, the remaining 45 employees will leave the company which will subsequently be shut down.