Baumix sees turnover fall by 9 percent, relocates production lines

Newsroom 22/02/2010 | 10:57

Local construction materials producer Baumix saw its turnover shrink by 9 percent last year on the previous, to around EUR 8.5 million, according to the company. However, the entire construction materials market fell by 30 percent, Baumix added.

The drop was due to the decrease in prices, supplementary amortization costs, difference in currency exchange, as well as the additional costs of the payment deadlines imposed by the market, according to the firm. Baumix has also kept its pre-tax earnings (EBITDA) at 7 percent of turnover, which is around EUR 600,000, and plans to be profitable this year too, with a similar turnover to last year.

“Our strategy is to keep sales at the 2009 level, and given the current market conditions, Baumix is focusing on reducing costs as well. This measure will not affect HR or marketing, but rather targets setting up reserves which would have seemed insignificant in previous years: an analysis of contractual terms with suppliers, stock management, monitoring and reduction of losses from the production side,” said Augustin Russu, general manager of Baumix.

The company has relocated the five production lines in its factory in Gherla in a cost-cutting measure, while its Ploiesti factory has been expanded. It has managed to reduce costs on rent and transport between units, among other savings, according to representatives.

Corina Saceanu