The company regarded as one of the largest employers laid off 16% of its employees keeping only about 5,500.
The decline in 2012 was because of “Hidroelectrica making significant cuts to its investment program in the second half, as a result of its insolvency,” the 2012 report of the company says.
Hidroconstructia might therefore lose its top position in the ranking of Romanian-held builders, considering Spedition UMB of businessman Dorinel Umbrarescu, collected more than EUR145 million from Romania’s company in charge of highways and national roads (CNADNR) alone in 2012, according to ZF data.
Last year was the worst of eight years for Hidroconstructia, with revenue dropping below the 2005 level and 2,700 fewer employees than it had back then.
In 2000, Hidroconstructia was one of the 50 largest companies in Romania by revenue and had more than 12,000 employees, according to ZF data. Now it has less than of half and laid off 1,050 people last year alone.
The poorer results of 2012 come after a 2011 when its revenue stood at more than EUR230 million and net profit was at its highest since the start of the crisis, about EUR12 million.
Hidroconstructia officials did not provide an answer to ZF’s question about the steep revenue decline in 2012 or about this year’s revenue target.
Besides the insolvency of Hidroelectrica, its main client, Hidroconstructia’s business was also hurt by the slashing of publicly sector investments and the failure to absorb non-repayable EU funds for operational and structural programs, which caused Romania’s construction market to shrink. (EUR1=RON4.4143)
(English version by Loredana Fratila-Cristescu)