The industry is the engine of economic growth: The industrial turnover up 10.4% in the first seven months

By Emea Riga

The industry businesses grew by 10.4% in the first seven months of the year as compared to the same period in 2016, the main sectors contributing to this result being the capital goods industry and the energy industry, with two-digit increases, show data from the National Institute of Statistics (INS), released on Monday.

According to the statistics, from January 1 to July 31, 2017, within the margin of 10.4% growth in industrial turnover, the segment of the mining industry increased by 13.4% and the processing industry by 10.3%.

Furthermore, as compared to the first seven months of the previous year, in 2017, the major industrial groups recorded increases in the following industries: the capital goods industry (+15.5%), the energy industry (+ 13.6%), the intermediate goods industry (+ 8.5%), the durable goods industry (+ 8.2%) and the consumer goods industry (+ 5.4%).

The INS data also reveal that in July 2017 as against June 2017, the industrial businesses fell by 3%, on account of the mining industries (-8.9%) and the processing industry (-2.8%).

By main industrial groups, during the period under review, there were also decreases in the durable goods industry (-5.7%), the capital goods industry (-5.6%), the intermediate goods industry (-2.5%) and the current use goods industry (-1.6%). On the other hand, the energy industry increased by 7.4%, according to INS. (rbj/11.09.2017)

Romania's industrial production advances 17.3% in May 2017, y-o-y

By rbj

In May 2017, Romania's industrial production increased by 16.1 percent in gross series compared with the previous month and was up 3.5 percent when adjusted for working days and seasonality; compared with the same month of the previous year, industrial production rose by 17.3 percent in gross series and it was up 15.3 percent when adjusted for working days and seasonality, according to data released by the National Statistics Institute (INS) on Wednesday.

January 1- May 31, 2017, industrial production increased by 7.8 percent in gross series compared with the January 1- May 31, 2016 period and rose by 8.4 percent when adjusted for working days and seasonality. In May 2017, industrial production (gross series) increased by 16.1 percent from the previous month due to rises in manufacturing (+17.9 percent) and mining and quarrying (+12.4 percent). The electricity, gas, steam and air conditioning supply dropped by 4.0 percent. Industrial production (adjusted for working days and seasonality) was up 3.5 percent from the previous month. Increases were recorded in mining and quarrying (+7.5 percent) and manufacturing (+5.6 percent). A decrease was reported for the electricity, gas, steam and air conditioning supply (-0.1 percent).

Compared with the same month of the previous year, industrial production (gross series) increased by 17.3 percent due to rises in all industrial sectors: manufacturing (+18.6 percent), mining and quarrying (+13.9 percent) and the electricity, gas, steam and air conditioning supply (+2.1 percent). Industrial production (adjusted for working days and seasonality) rose by 15.3 percent on increases in manufacturing (+16.1 percent), mining and quarrying (+13.2 percent) and the electricity, gas, steam and air conditioning supply (+2.0 percent).

January 1- May 31, 2017, industrial production (gross series) was up 7.8 percent from the January 1- May 31, 2016 period due to rises in manufacturing (+8.4 percent), electricity, gas, steam and air conditioning supply (+3.2 percent) and mining and quarrying (+1.1 percent). January 1 - May 31, 2017, industrial production (adjusted for working days and seasonality) rose by 8.4 percent from January 1- May 31, 2016 on increases in manufacturing (+8.1 percent) and the electricity, gas, steam and air conditioning supply (+4.0 percent). Mining and quarrying declined by 0.1 percent. (rbj/12.07.2017)

Alro registered an adjusted net profit of RON 93 million in Q1 2017

By rbj

Alro S.A. (BSE: ALR, “the Company” or “Alro”), the largest aluminum producer in Continental Europe (excluding Russia and the Scandinavian Peninsula) posted a net adjusted profit* of 93 million lei in the first quarter of 2017 compared to 41 million lei in the similar period of 2016. The company's turnover was 634 million lei, rising from 564 million lei in the same period in 2016, while the net profit was 78 million lei, compared to 27 million lei, in the same period last year.

„In the first quarter of 2017, Alro achieved a significant operational and financial performance, following the Company's long-term strategy of increasing production and sales of value-added products, as well as valuing more favorable market conditions than in the same period of the previous year”, said Marian Nastase, President of the Board of Alro. „Profitability margins have increased visibly, as well as the Company’s ability to generate liquidity. We have already achieved a significant part of the net profit budgeted for the current year, and the current market conditions make us confident about the rest of the year.”

2017 started with a continuation of the upward trend in aluminum quotations at the London Metal Exchange (LME), started in the second half of 2016, backed by events that indicate a slowdown in global aluminum supply growth in many parts of the world (such as the US or Australia) but especially China. Thus, the average LME in January-March 2017 was USD 1,851 / ton, with more than USD 300 / ton higher than the average of the same period in 2016, of USD 1,516 / ton.

In Q1 2017, revenue from primary aluminium sales increased by 9% compared with the same period of 2016, while processed aluminium sales recorded an even higher 16% growth, in line with Company’s medium and long-term strategy. This positive evolution was supported by the increase in aluminium prices on the international market (+22% compared to Q1 2016), the appreciation of US dollar against the Romanian currency (with 4.2% compared to average of Q1 2016), as well as improving the sales structure, factors that have offset the drop in premiums for aluminium products. Under this condition and due to the efficient management of raw materials costs, the gross margin improved significantly from 9% in Q1 2016 to 22% in Q1 2017, which resulted in a net profit of RON 78 million, almost three times higher than the net profit of RON 27 million reported in the same period last year.

The Company achieved a significant improvement in cash flows generated from operating activities, reaching RON 96 million (compared to RON 14 million in Q1 2016). These results reflect the significant improvement in profitability, as well as the Company’s efforts to manage cash flows as efficiently as possible.

In terms of investments, in Q1 2017 Alro spent RON 31 million, compared to about RON 18 million in Q1 2016, which had as main destinations investments co-financed from the European Regional Development Fund, the reconditioning of the electrolysis tanks and other mainenance and improvement of existing equipments.

Alro will accelerate this year’s investment for technological upgrading and operational efficiency improvement, according to the approved budget in amount of USD 41 million for 2017. Continuing its long-term strategy, the Company will invest in lowering energy dependency and increasing the share of high value-added products within its mix of products. The latter mainly targets the processed aluminium section, with the aim of gradually increasing production capacity for hot-rolled products (heat treated plates and cladded products). (rbj/15.05.2017)

Romania has lost 450,000 industrial jobs in one decade

By rbj

Romania's workforce stayed at its level of one decade ago, private enterprise is frightened and 450,000 industrial jobs were lost, PwC Romania partner Vasile Iuga told a conference on Tuesday on problems facing Romanian manufacturers.

"Foreign capital makes up 8 percent of the total of companies operating in Romania, owns 40 percent of the assets and employs one quarter of the total workforce, conducting 80 percent of exports on a profitability that is three times bigger than industrial productivity in Romania. In the industrial sector, 65 percent of the gross added value comes from foreign capital. A brief look at the economy reveals 600,000 companies operating in Romania. The number of companies per one thousand people is 22 in Romania, compared with 43, as is the EU average, which indicates frightened private enterprise," Iuga told a conference that discussed the gap between Romania's economy and productive Romania, along with necessary policies to bridge it.

Iuga went on to say Romania's workforce over the past decade has stayed somewhat the same, at 4.6-4.7 million people, after a dip to 4.1 million employees in 2011.

"As many as 450,00 industrial jobs were lost. The number of trade jobs advanced by 225,000, to 750,000, the number of communications jobs increased by 80,000, but so did the jobs in the public administration, which increased by 200,000," said the PwC official. (rbj/21.03.2017)

Romanian industry turnover up by 9.1 % in January 2017

By rbj

In January 2017, the turnover in industry, per total (domestic and non‐domestic market), decreased in nominal terms compared to the previous month by 5.6% and increased compared to the corresponding month of the previous year by 9.1%, shows a release of the National Institute of Statistics (INS).

„The industry turnover dropped overall by 5.6 percent in January 2017 compared with January 2016, due to the decreases in the manufacturing industry, by 5.7 percent and the extractive industry by 3.3 percent. On the big industrial groups, decreases were recorded in the FMCG industry (-16 percent), energy industry (-14.1 percent), intermediary goods (-3.5 percent) and durable consumer goods (-1.6 percent). The capital goods industry went up by 1.1 percent,” says the release.

Compared with January 2016, the industry climbed overall 9.1 percent due to the increase in the manufacturing industry (10.2 percent). The turnover from the extractive industry went down by 17.5 percent.

„On industrial groups, there were increases in the capital goods industry (17.8 percent), energy industry (11.5 percent) and durable consumer goods (7.2 percent), as well as on FMCG (6 percent),” according to the source.(rbj/13.03.2017)

ArcelorMittal Galati: Euro 12.5 million investment at Heavy Plate Mill 2

By rbj

ArcelorMittal Galati commissioned and ramped up the new Hot Leveller which serves Heavy Plate Mill nr. 2, after an EUR 12.5 Million investment. The project is part of an extensive technical upgrading program currently in progress at this rolling mill and at the Steel Melting Shop.

“This investment consolidates our position on the plates market as we can now deliver new and better products with better services for customers”, said Bruno Ribo, Chief Executive Officer of ArcelorMittal Galati.

The Hot Leveller - supplied by Danieli - ensures the production of a higher range of thicknesses and qualities for plates used in applications such as energy pipes, ships and metallic constructions, being 80% more powerful and having a higher level of automation.

The project and construction works were carried our without no disruptions from the production flow and with no safety accident.

About ArcelorMittal

ArcelorMittal is the world's leading steel and mining company, with a presence in 60 countries and an industrial footprint in 19 countries. Guided by a philosophy to produce safe, sustainable steel, we are the leading supplier of quality steel in the major global steel markets including automotive, construction, household appliances and packaging, with world-class research and development and outstanding distribution network. Through our core values of sustainability, quality and leadership, we operate responsibly with respect to the health, safety and wellbeing of our employees, contractors and the communities in which we operate. For us, steel is the fabric of life, as it is at the heart of the modern world from railways to cars and washing machines. We are actively researching and producing steel-based technologies and solutions that make many of the products and components people use in their everyday lives more energy efficient.

We are one of the world’s five largest producers of iron ore and metallurgical coal. With a geographically diversified portfolio of iron ore and coal assets, we are strategically positioned to serve our network of steel plants and the external global market. While our steel operations are important customers, our supply to the external market is increasing as we grow.

In 2016, ArcelorMittal had revenues of $56.8 billion and crude steel production of 90.8 million tonnes, while own iron ore production reached 55.2 million tonnes.

ArcelorMittal is listed on the stock exchanges of New York (MT), Amsterdam (MT), Paris (MT), Luxembourg (MT) and on the Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS). (rbj/08.03.2017)

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