Interest expenses and salary rises have reduced listed company profits

Main companies listed on the Bucharest Stock Exchange (BVB) posted profits in the second quarter 12 times lower than in Q1 2008. However, half-year earnings were 61 percent higher than those in the first six months of 2007, according to an analysis by Business Standard, based on data provided by 39 companies.

The companies analyzed, listed on BVB's main market, posted profits totaling €372.2 million. These figures do not include financial results of the five financial investment companies (SIF).

"Second quarter profits dropped in certain industries and I expect things to be similar in the coming quarter. As concerns industrial companies, an increase in expenses related to increased interest and salaries was visible," according to UniCredit CA IB Securities Romania's head of Analysis Department, Adriana Marin.

On the other hand, in the first six months of 2008, the profit of listed companies amounted to €790 mln, 61 percent higher than in H1 2007, and turnover was 50 percent higher, up to €7.35 billion.

Business Standard