ESCO Managing Director, Engineer Sadeghi had an interview with our correspondent about the plans of this company for reducing the losses, he stated: this year we will reach profitability, our plan is to exit the current loss status and we will certainly have no losses and indeed we will certainly reach, point to point situation this year. In the past years ESCO has not been profitable and in the late last year, with the increase of metals’ prices, we expect ESCO to exit the loss status and enter profitability one.
Regarding the capital increase of ESCO, he said: the decision making for this particular subject is with the Board of Directors and they will make the appropriate decision in this respect. He stressed: in this connection, I have done whatever I could as managing director, and the rest of decisions is with the Metals’ Stock Organization, Accounts’ Inspection Organization & ESCO Board of Directors.
He further said: in the current year due to the decrease in consumption and production planning we could reduce expenses as well, these reductions in addition to increase of the rates will result in improving the profitability process of the company and our plan is to exit the loss status and we have acted very successfully so far.
As for the demands in the current year, ESCO Chairman expressed hope and further continued; the demand for our products have been started since Mar. 2016 and has been “Good” comparing to the last year and this trend has been continuing in Apr. 2016. He added: with the increase of prices and improvement of the Int’l prices, our exports have also been increased as far as “Price” Not “Volume” is concerned. With the improvement of exports, if the domestic market is not appropriate we have capability to increase the volume of our exports. He reiterated: the volume of our exports have not been increased and we cannot increase the export of our materials, without considering the domestic market, because this will lead to the increase of prices inside Iran.
He further emphasized; as I said, in the event of improper situation of the domestic market we can increase the volume of our exports as a result of which the domestic market can be compensated, but if the domestic purchase is good we will benefit the increase of the Int’l prices and consequently we will not have any increase on the volume of our exports.
“The demand in domestic markets has become more suitable” Engineer Sadeghi concluded.