BUSINESS NEWS: New measures to restore profitability

After mixed results were reported in 2012, out of which most are in discrepancy with initial forecasts, the major corporations active on the international market of joinery systems are currently facing a turning point. Thus, any managerial decision currently applied will have repercussions on the profitability recorded on short and medium term given that the economic and financial crisis seems to be far from its end. Although the turnover increased in some segments, in terms of profitability most specialized holdings recorded more or less significant losses in almost all cases. If the managers of multinational groups in the industry have initially been able to avoid some of the undesirable effects of the recession, in 2013 they will be forced to implement new measures in order to restore profitability, but the approach is hampered by the aridity of the business environment. As a previous analysis based on current indicators has warned, the first half of this year and, obviously, all 12 months of 2013 represent a period marked by serious structural problems, particularly at the level of the European Union. Without attempting an exhaustive analysis, a real reason for concern – which stands in the attention of the whole business environment – is represented by the information outlined by the European statistical office Eurostat, which reflects the fact that in the fourth quarter of 2012, the entire Eurozone (EU-17) continued to be in technical recession and could soon be followed by all European Union (EU-27). Basically, in the last three months of 2012, the GDP decreased by -0.6% in the Eurozone and -0.5% in the EU-27 compared to the previous quarter, after a previous sequential decrease of -0.1% in the Eurozone and an increase of +0.1% in the EU-27, which means that the economic space of the entire Union faces serious problems which seem to be without solution. As a result of the reduced activity in the first quarter of 2013, it is most likely that the EU-27 will experience another sequential decline of the GDP determining, thus, the entering into technical recession. For further information and a detailed analysis of the current Fereastra issue, click here!