Saturday, November 8, 2008

Impact Romania's Nine-Month Profit Gains on Construction Boom

By Irina Savu

Nov. 7 (Bloomberg) -- Impact SA, Romania's only publicly traded homebuilder, said profit rose 12 percent in the first nine months of the year as higher lending and wages spurred a construction boom in Romania.

Net income increased to 16.8 million lei ($5.7 million) in January through September from 15 million lei in the same period last year, the company said in a filing to the Bucharest Stock Exchange late yesterday. Revenue advanced 63 percent to 190 million lei, while expenses rose 74 percent to 169 million lei.

Romania's construction industry has expanded as wages rise and a lending boom boosts private debt.

Impact rose 14.7 percent to 0.0326 lei per share in Bucharest yesterday. At that price, the company is valued at 65 million lei.

To contact the reporter on this story: Irina Savu in Bucharest at isavu@bloomberg.net.

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