VAE Apcarom Buzau, a railway equipment manufacturer, part of the Austrian group VAE, ended 2005 with a net income of 1.16 million euros, twice the value seen in the previous year.
The income rose against a background of 75% higher sales derived by the company.
VAE Apcarom last year registered turnover worth 14.2 million euros, above the level budgeted at the beginning of the year, benefiting from the higher number of orders, especially coming from private companies. The company''s revenues totalled 15.1 million euros, while expenditures came close to 13.7 million euros. The company''s management made no comments on the figures.
Last year, the firm focused on the domestic market, given that the foreign market shrank. The company''s sales abroad last year accounted for less than 25% in turnover.
Instead, the domestic market witnessed higher orders, both from CFR (the Romanian Railway Company), the main customer of the company, and from major private companies, many of which carried out investments specifically aimed at the modernisation of their own railways during the respective period.
Last year, VAE Apcarom won a series of tenders for the right to participate in the programme for the rehabilitation and modernisation of the railway component of Pan-European Corridor IV. The company''s representatives hope investments included in this programme will continue to secure considerable orders over the following period as well, believing that the domestic market is large enough to secure orders covering the company''s production over the coming years.
VAE Apcarom is the only Romanian manufacturer of turnouts and turnout parts for railways and subways.
The main customer of the company is CFR, accounting for 45% of sales. The company was privatised in 1998 and became a member of the Austrian group VAE, a global leader in the sector of turnout production. VAE owns 77.4% in Apcarom. The main minority shareholder in the company is the investment fund Danube Tiger, managed by the Swiss Hyposwiss, with 9%.
Apcarom''s shares are listed on the Bucharest Stock Exchange and the last transactions with this stock closed at the price of 0.53 RON/share on Monday, almost 2% higher as compared to the previous session. Its stock closed at 0.52 RON/share on Tuesday, however, down 1.89% from Monday. Apcarom stock, however, exhibits low liquidity.
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