The net profits of the two builders fell at almost the same rate, to RON45 million, according to Finance Ministry data.
The 2014 results of Umbrarescu’s companies are the lowest in the last few years. The two used to be among the top construction companies in Romania. In 2009, for instance, they posted almost RON1.6 billion revenue together, while profit stood at more than RON360 million, which means net profit margin reached 23%. In 2014, the average profit margin of Spedition UMB and Tehnostrade was much lower, less than 9%, according to ZF’s calculations.
The decline of Umbrarescu’s construction business was largely because of a decline in the number of public contracts, the main type of projects the two builders tackle. Dorinel Umbrarescu, who also has banking operations, having launched Banca Romana de Credite si Investitii (BRCI), did not return ZF’s calls for comment on the 2014 results of the construction companies.
(English version by Loredana Fratila-Cristescu)