InterAgro posts some €1.3 bln in business for 2007

“The year 2007 is the best in InterAgro’s history. The profit margin was also very good, following losses registered in 2006,” Niculae told Business Standard. He did not, however, provide details on the profit margin.

InterAgro is operating in agriculture, foreign trade, the chemical industry, and tourism, and owns three fertilizer producers and a 5 percent share in a fourth fertilizer company. The group also owns some 50,000 hectares of agricultural land.

The results for 2007 include the Asirom deal, by which InterAgro sold its controlling interest in Asirom, the third-largest local insurance company, to Austrian Vienna Insurance Group (VIG), in two transactions, last year. The deal was given the go-ahead in mid-October by the Competition Council.

The businessman said that one of the engines for last year’s growth was the restart of chemical plants based in the towns of Turnu Magurele and Slobozia.

“Everyone says that the plants are not profitable, but in fact they are two gold mines. We restarted them and they are now producing [goods] worth $17-18 million (€11.5-12.2 mln) per month,” Niculae said.

However, last September, Niculae’s expectations for 2007 were more pessimistic, at some €700 in turnover for his group. As for 2008, he declined to make a forecast. “It is difficult to make long-term estimates in Romania. But I hope that 2008 is as good as last year,” he added.