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Financial results of companies, affected by possible annual recession

At the end of the current fiscal year, it seems that, despite the optimism exhibited by most company managers at the beginning of 2012 and the attempts to recover the looses, the recession affects the thermal insulating joinery segment in a similar way as in the first two years of the economical crisis. Thus, the period October - December 2012 could not represent for the companies in the field a time of growth and could not improve the main financial efficiency indexes, even though it can be taken into consideration that there are some firms which reported improvements of their results. In the past, the companies in this category decided to focus on export activities or on the related branches, in order to keep up the profitability, but now the international events (mainly the new recession conditions) affect the delivery abroad, while the national economy is slowed by complex factors, like political ones. It seems that the conditions for recovery will not be met at least in the first half of the next year, and the companies will be forced to encounter serious difficulties, like the decrease of demand. A positive factor could consist in the ending of the period of political elections, some stabilization being possible in the future, when the general public attention will be focused on the national economy instead of politics. Faced to problems like continuous diminishing of the number of construction projects and the sharply decrease of the foreign direct investments, the managers must understand the danger of the generalization of this matters. The lack of governmental measures (besides the protective ones), will drive to the fact that the financial problems characterized by the low level of cash in the real economy will become shortly the real characteristic of the national market. In the same time, because of the current trend of purchasing by the criterion of low price, the companies should take measures of cuts and reorganization, in order to limit the production costs and to improve the outturn. Unlike the international corporations, local companies do not have the necessary means to revive their business, so their outlook is much more pessimistic. For further information and a detailed analysis of the current Fereastra issue, click here!

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