Mobexpert faces double than expected turnover drop in 2009

Local furniture producer and retailer Mobexpert posted EUR 115 million in sales last year, a 21 percent drop in its sales reported in Romanian currency. The drop was bigger than estimated due to the devaluation of the RON, the company has announced. Mobexpert estimates it would post a loss or, in a best case scenario, a break even. Its retail sales dropped by 17 percent on home furniture and decorations, while the office furniture sales dropped by as much as 30 percent. The group has also seen a downwards trend in demand from external markets, which triggered a drop in production, down to 50 percent production capacity for its factories. Exports on Western markets also diminished, with a 30 percent drop last year on 2008. Last year, Mobexpert has let 14,000 sqm of retail space to third parties, dropped its investments in advertising, axed 800 staff from the group, among others.