The turnover of IAR Ghimbav increased 39.45% in the first semester of 2011, from 28.911 million lei to 40.315 million lei, whereas the company"s profit fell almost 34%, from 5.434 million lei to 3.588 million lei, according to the report that the company remitted to the Bucharest Stock Exchange.

During the reviewed period, the company"s revenues increased 4.72%, from 37.814 million lei to 39.602 million lei, whereas expenses increased 12.89%, from 32.379 million lei to 36.543 million lei.

On Friday, the shareholders of IAR Ghimbav approved the Revenue and Expense Budget for the year 2011, after its initial approval by the Romanian government. Thus, the company has scheduled for this year a gross profit of 3.517 million lei, down 21.8% over last year"s 4.5 million lei. The company"s total revenues are expected to fall 20.7% this year, from 70.219 million lei to 55.688 million lei. Operating revenues are only expected to fall only 7.2%, from 59.119 million lei to 54.838 million lei, and financial revenues to fall 92.3%, from 11.1 million lei to 850,000 lei.

The company"s expenses are also expected to fall 20.6%, from 65.719 million lei to 52.171 million lei, the aforementioned document states. According to the revenue and expense budget, this year, labor productivity is expected to increase, from 193,000 lei to 210,000 lei/person (over 8%), given the fact that the company went through two waves of employee restructuring over the last two years. And the average salary per employee is expected to increase this year by 2% from 2,996 lei to 3,092 lei, amid a 26.9% reduction in salary expenses, from 12.697 million lei to 9.282 million lei.

IAR Ghimbav is controlled by the Romanian state, which owns over 65% of the shares, through the Ministry of the Economy, Trade and Business Environment.

OVIDIU VRÂNCEANU, Braşov (Translated by Cosmin G