Romanian car parts manufacturer ups profit 90% despite higher personnel costs

Compa Sibiu, a Sibiu-based plant which produces components for motor vehicles and car engines, posted a turnover of RON 655 million (EUR 145.4 million) last year, up 33% over the previous year. The net profit rose by 90% to some EUR 11.4 million. The company’s costs increased by over 33% to EUR 135.7 million in 2016, following a control of the Labor Inspectorate (ITM). The company had to recalculate the wages related to the extra work hours performed by employees in 2015. The costs with the employees’ benefit rose by 13.64% to some EUR 25.7 million. “The recalculation resulted in additional expenses with employees’ benefits and with insurance and social protection expenses,” according to a report sent by the company to the Bucharest Stock Exchange. Compa Sibiu was privatized in 1999, like many other state owned firms, via a Management Employee Buyout (MEBO). It has been something of a success story, managing to develop without a big, external shareholder. The company is listed on the Bucharest Stock Exchange and has a capitalization of EUR 61 million. editor@romania-insider.com (photo source: Compa.ro)