Top 5 most profitable companies in 2008

The recession has dramatically changed business fundamentals across the globe, and threw up new names in the top most profitable companies in Romania. The long-term leader that dominated all profit rankings over the past few years, Petrom, was knocked off by the telecom’s No1 player – Orange. Wall-Street identified the most profitable companies, by their 2008 profit data posted on the website of the Ministry of Finances.

5. Lafarge � 163. 9 million euro earnings

Cement producer Lafarge takes up the fifth spot in the top most profitable companies in Romania, racking up 163.9 million euros in earnings last year, up 20 percent from 132.4 million euros last year.

Sales rose 12.5% in 2008, up to 370 million euros in the period under review. In 2007, the construction material supplier posted sales of 324 million euros.

Early last year, Lafarge said it earmarked 140 million euros spread over the next 5 years, both in the enhancement of cement production capacity in Romania as well as in environmental protection measures, according to industrial manager of Lafarge Romania, William Pottier.

4. ArcelorMittal - 164.2 million euros earnings

ArcelorMittal Galati climbed straight to No4, after recording 164.2 million euros in 2008, up 40 percent over a year earlier.

In 2007, the steel-maker had a profit of 97.3 million euros.

On the other hand, sales fell 7 percent, from 2.08 million euros down to 1.9 million euros.

Arcelor Mittal said it would invest 1.5 billion dollars over the next six years in improving product quality and increase productivity.

In the same period, the company appointed its former vicepresident Christian Dessiaume as the new chief operating officer, replacing Hans Ludwig Rosenstock after three years in office.

3. Petrom � 277.8 million euros

When the Austrian OMV bought Petrom in 2004, the local oil company had losses of up to 230 million euros, losses that in one year alone turned into 390 million euro profit under OMV clout and took the leadership as the most profitable private company in Romania.

The oil and natural gas company reported a net profit of 277.8 million euros, almost twice less than 532.7 million euros a year earlier. Sales increased to 4.55 billion euros, up 20 percent from 3.68 billion euros a year earlier.

The company said last year it would revise its investment blueprint and it would safeguard its cash flow by using risk-hedging instruments.

2. Vodafone � 306.6 million euros

Last year, Vodafone reported sales up 3 percent to 1.18 billion euros. The profit increased by 16 percent in the same period, up to 306.6 million euros.

In 2007, the mobile telecom carrier recorded sales of 1.15 billion euros and after-tax profit of 264.7 million euros.

The company had 667,212 new users registered in the 2008-2009 fiscal year up to a total 9,588,065 clients until March 31, 2009, while headcount increased to 2,950.

1. Orange � 437.9 million euros

The leader of the telecom market posted a profit of 437.9 million euros in 2008, up 20 percent from a year earlier, thus becoming the country’s most profitable company knocking Petrom off top spot.

In 2007, the leader of the telecom industry posted sales of 1.21 bn euros, up 24 percent over a year earlier and a net profit of 366 million euros.