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Eurozone recession, destabilizing corporate profitability

For the international thermo insulated joinery sector, the last six months in 2012 and, obviously, the first half of the next year will represent a period which will be characterized by unfavourable elements. It is obvious that the bottom of the economic cycle of decrease has not yet been reached given that the most important corporations in the field (also interconnected to other industrial sectors) are reporting looses. In this deeply negative context, the new crisis in the euro zone is not an absolute unexpected situation, also - nowadays - the severity of the actual recession cannot be evaluated and nobody has a clue about the intensity of the future impact on the international markets. In this kind of periods, most of the managers fear that their companies will not be capable to avoid the recession and will close the activity, even those economic agents who correctly apply the measures of prevention and succeed to overcome the obstacles. The economic context is marked by uncertainty. The only sure thing is that in the absence of any correction measures which should limit to some extent the hardness of the austerity (this kind of policy is not supposed to generate a sustainable progress), the next year will be characterised by severe turbulences, especially on the windows market. Here the main competitors already applied the corrections which allowed them to obtain a slight stability in terms of turnover or even a little growth of earnings. As in 2009, when the crisis generated huge looses for companies in the field, there were some experts who stated that the real problems didn't exhibit yet in their strongest power, throughout Europe. Because the most countries in the euro zone are well connected to the international financial markets, this kind of difficulties would spread fast to other regions, known as emergent markets and that were generating, until now, important results for both international and local companies. There is no doubt that a recession, which starts again in a moment when companies didn't manage to recover their previous looses, will threaten the existence of any company, even of the efficient ones. For further information and a detailed analysis of the current Fereastra issue, click here!

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