Press release
Article added on: 10/05/2010
Cefin Romania, Iveco dealer and specialized provider of integrated services for the world of transport, presented at the beginning of May 2010, during a meeting with the press, a summary of the results of its divisions operating in the automotive field in the context of the recent crisis, the most severe of the post-war history.
Starting with September 2008 the collapse of the Romanian market began to be obvious and 2009 brought a 70% decline of new commercial vehicles segment (GVW>2.8 tones) – the market segment where Cefin runs its operations. In this segment, the company held during the past two years a market share of 8.5% (calculated from new vehicle sales officially reported by APIA). Such a contraction of the market was felt in all Eastern European countries and up to 50% in other European countries. Besides the volume reduction in the automotive industry, trading margins were close to zero, retailers trying to reduce inventory levels.
This context with sales without profit or even loss made necessary for Cefin Romania the implementation of a restructuring plan in order to balance operational costs (overheads and personnel) of the Company with substantially lower margins from the sale of vehicles and service operations. The management of the Company was proactive since the second half of 2008, planning its annual budget with the strategic focus on optimizing rather than further expansion. Thus, no new investments were planed and a comprehensive reorganization of business operations was implemented. With a clear objective to preserve competences and the level of performance of the team and not to affect the territorial coverage, the top management of Cefin Romania successfully concluded by Q4 2009 a restructuring process managing to reduce its operating costs with over 900 000 euros per month (approximately 40 % on total).
Comparing the average values of Q4 2009 versus Q4 2008, the reductions are significant: the number of employees - 30%, - 43% in salary expenses costs, - 34% overheads.
In the first quarter of 2010 that just ended, the volumes of the commercial vehicles segment is still 19% below those of 2009. Despite these developments, Cefin Romania ended the first three months of the year with clear evidence of improved performance. Thus, comparing with the same period of the last year, the Company has a substantial increase in market share from 9.4% to 15% (calculated on sales of new vehicles officially reported by APIA, Q1 2010 over Q1 2009) and in total vehicles sold by over 55%. At the same time Cefin strengthened its position within the Iveco dealer network, producing almost 70% of sales of new Iveco trucks imported in Romania, compared to 55% from the same period last year and a performance by 40-42% during 2000-2008.
Cefin performance is due to increased efficiency of its operations, proactive attitude and new approach of sales team focused towards the development of new important customers.
2010 first quarter results are in line with company strategy to achieve a market share over 10% by yearend and to increase the penetration achieved in 2009 of Iveco brand.
To offer a better service to its customer the company is conducting an extensive renovation of its service facility in Ploiesti and will relocate its activities in Arad to a newly established purposed built location by September 2010.
''After the most difficult year in our history, Cefin is now ideally positioned to take advantage of the market growth expected in the future because of improved efficiency and substantial gain in market share.
We are optimistic regarding the medium-term prospects of the Romanian market, and our strategy is to remain one of the leading operators in the commercial vehicles sector for many years to come''- says Stefano Albarosa, CEO of Cefin Holding.”