Wednesday, November 5, 2008

Oltchim Romania Posts Nine-Month Loss on Weaker Currency

By Irina Savu

Nov. 4 (Bloomberg) -- Oltchim SA, Romania's sole PVC plastic maker, turned to a loss in the first nine months of the year as a weaker local currency increased the cost of imported raw materials.

Oltchim recorded a loss of 27.7 million lei($9.5 million) compared with a net profit of 3.4 million lei a year earlier, the company said late yesterday in a filing to the Bucharest Stock Exchange. Revenue rose 19 percent to 1.67 billion lei as costs increased 21.5 percent to 1.7 billion lei, it said.

Romania's leu has weakened almost 11 percent against the euro in the past year, making imported raw materials more expensive.

Oltchim shares rose 3.6 percent in Bucharest trading yesterday to 0.289 lei each, valuing the company at 99.3 million lei.

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

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