Arad-based Astra Vagoane Calatori (Astra Passenger Coaches), the company that assembles Sageata Albastra trains (high speed trains) posted a profit of 12.57 million euros (41.62 million RON), three times as high as in 2005, according to the company's preliminary data.
The surge in profit was prompted by an 18% higher turnover (in euros), to 32.72 million euros (115.19 million RON) in 2006, against 27.7 million euros (100.62 million RON) in 2005.
"The profit rise can be explained by the fact that Astra Vagoane Calatori is continuously analysing its activity in an attempt to identify high costs. We significantly lowered material costs, but we also increased productivity," Ovidiu Bologea, communication manager of Astra Vagoane Calatori, told Ziarul Financiar.
The company hired a further 115 people last year reaching a total of 1,026 employees.
In 2003, Astra Vagoane Calatori started building the first modern and best-known self-propelled train running on the Romanian rail network.
"The component parts of the trains come from Germany, and Astra Vagoane Calatori merely assembles and checks them," added Ovidiu Bologea.
The assembling process of Sageata Albastra high-speed trains is to be completed this year, with the trains becoming immediately functional. According to company representatives these developments will not affect the company's financial results, as building high-speed trains is not the company's sole activity.
Astra Vagoane Calatori also manufactures passenger coaches exported to other countries, which comply with international standards. These coaches can reach a speed of up to 200 km/h.
"The growth seen by the coach building sector is a strong, yet natural one, if you look at the turnover of other similar companies in the European Union. Companies in this sector are following the general economic trend," said
