Listed companies operating in the field of constructions, suchas Comnord Bucuresti (COSC), Concefa Sibiu (COFI) or ComincoBucuresti (COBS) registered turnover slumps of between 40 and 50%,but managed to stay in the black in the first nine months of thisyear.
"The constructions field is characterised by a higher inflexibilityin terms of its response to the overall economy as constructionsare characterised by a higher duration of production flows. Afterthe onset of the crisis, the sector took a while to feel it,compared with the manufacturing industry, for instance," saysAndrei Radulescu, an analyst with Target Capital brokerage.
As a rule, short-term plunges in turnover can bring losses, ascompanies need to adjust expenses in a very short period oftime.
Profits generated by companies operating in the field ofconstructions have plummeted this year, by as much as 90% from thefirst nine months of 2008, but the situation is better than in theiron and steel industry or the chemical one, where most majorcompanies slipped into the red.
Analysts believe the progression of the constructions sector thisyear was triggered by the old unfinished projects. "I believe theprogression of the constructions sector in the first months of thisyear was mainly decided by the old projects and the few publicinvestments operated this year. I don't believe one can speak ofnew construction projects this year, especially in the privatesector," says Andrei Radulescu, an analyst with TargetCapital.
He says civil engineering projects were most visible this year,being more resilient against the economic downturn.
Andreea Gheorghe, an analyst with Intercapital Invest, believesthat "construction companies that made profit this year were thosethat have a structure of expenditures with lower fixedcosts".
Analysts believe the sector will stagnate next year against 2009,though it offers a high potential on the long term. They considerthe sector may rebound in 2011 at the earliest, depending on globaleconomy trend.
