Engine maker Electroputere trims losses down to EUR 13m in 2007 y/y after sell-off

Romanian electric engine producer Electroputere Craiova, recently purchased by Saudi company Al-Arrab, announced it reduced losses last year to 48.4 million lei (13.41 million euros), according to preliminary financial results.

The company's losses diminished 4 percent year-on-year and turnover fell 9 percent in 2007 versus 2006, to 142.82 million lei. Losses stood at 50.17 million lei in 2006 and turnover accounted for 156.54 million lei.

Revenues last year dropped 11 percent year-on-year to 153.1 million lei, despite a 9 percent cut in spending to 201.51 million lei. Debts due this year rose 19 percent to 226.88 million lei, against 190.75 million lei the company had to pay at the end of 2006.

Electroputere was privatized in mid-October after six-month talks. Al-Arrab Contracting offered 2.3 million euros for a 62.82 stake in the company. Under the transaction, the Saudi company agreed to take over the company's debts worth 61 million euros at the time and invest other 20 million euros.

The company posted a Q1 loss of more than 2 million euros last year. First quarter revenues from sales stood at 32.14 million lei, a 6.9 percent decline compared to the first three months of 2006. Electroputere posted a 8.34 million lei loss for Q1 2006 on revenues of 34.53 million lei.

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