Romania Prefab Eyes Triple Net Profit In 2011

04.14.2011 By Florentina Dragu

Romanian construction materials maker Prefab (PREH.RO) Thursday estimated a net profit of 10.9 million lei (EUR1=RON4.1021) in 2011, over threefold higher on the year.

Romanian construction materials maker Prefab (PREH.RO) Thursday estimated a net profit of 10.9 million lei (EUR1=RON4.1021) in 2011, over threefold higher on the year.

In 2010, the company reported net profit of RON3.3 million.

Prefab estimates a 8% increase in revenue to RON89 million in 2011, while overall costs are predicted to drop 3% to RON76 million, the company said in its revenue and expenditure budget.

The company scheduled total investments of RON65.4 million in 2010.

Earlier Thursday, Prefab said will invest around RON20.5 million in a 10 MW cogeneration plant in Calarasi city.

Prefab's shareholders also approved spending RON4 million to buy back up to 10% of its shares, which will subsequently be distributed to executives and subordinated staff.

Prefab was privatized in 1998 and its shares were listed on the first tier of the Bucharest Stock Exchange in 2010. Thursday, Prefab closed down 1.86% at RON2.11 per share.

Prefab is 80.7% owned by businessman Marian Milut through Romerica International, while regional investment fund SIF Muntenia (SIF4.RO) holds a 13% stake in the company.