“At a group level we had turnover worth €115 million in 2008, of which 80 percent was made up by construction. For 2009, I estimate some €100 million from construction and €25-30 million from other companies in the group,” Bog’Art President, Raul Doicescu, said. The company’s turnover amounted to €63 million in 2007. According to Doicescu, the residential market, which makes up one third of the overall construction market, will be the hardest hit by the crisis, because end consumers cannot afford or are unwilling to acquire housing. “The year 2009 is an atypical one; we have orders, but it is very difficult to make estimates,” the businessman added.
Due to the crisis, construction companies will have to make due with 3-5 percent profit margins, instead of 5-7 percent before the crisis. Furthermore, Doicescu estimates a 20-25 percent decline of the construction market, double the forecast made by the union of construction employers, of 10 percent. This year, Bog’Art finalized a €13 million investment in a metallic structures plant, but will forego further investments in order to preserve liquidities. Its largest project to date, worth €76 million, is the construction of the City Gate office building complex in northern Bucharest.
