The company did not mention the main factors triggering the poor financial results. Its profit and loss account published Friday by the stock exchange shows the variation of finished product stocks and products in progress was negative, respectively RON6.7 million, which put pressure on operating revenue.
Despite a 28% decline in expenses, to RON188 million, mainly against the backdrop of a decrease in raw material costs, the company’s operating revenue fell 33%, which subsequently reflected in its operating profit. Thus, in January-September 2020, IAR Brasov reported an operating profit of RON21 million, lower than RON50 million in the year-earlier period.
IAR Brasov has a market value of nearly RON248 million and its shares have been trading down 37% since the beginning of 2020. The company has paid out dividends annually, since 2012 to date.