3Q net loss by Oktyabrskaya furniture mill up 80%

Nov 22, 2004. /Lesprom Network/. Oktyabrskaya furniture mill (Bashkortostan Republic) increased 3Q net profits 80% compared to 2Q index, according to a corporate report.

The main market occupied by Oktyabrskaya is Bashkortostan Republic. The enterprise is constantly expanding the variety of goods and is already entering office, school and medical furniture market. The main customers of specialized furniture are companies, schools, hospitals located in Oktyabrsky, Ufa, Bavlinsky and Buzdyaksky districts.

58 various types of raw materials, units and accessories are used in the production of furniture. The raw materials are acquired by necessity. The normative stores of raw materials are maintained for 1-2 months. Costly raw materials (laminated boards) are acquired 2-3 times a month because of the lack of working capitals.

The major part of raw materials are acquired by prepayment: facades, postforming, laminated boards, washers, nitro-products, dispersion, tables. Hardware, accessories and other units are acquired by barter. Barter prices are higher than pecuniary prices (higher 15-30%).

The enterprise fails to resist price competition with its competitors such as Kstovskaya furniture mill, Electrogorsky furniture enterprise, Buguruslanskaya furniture mill. An average kitchen set produced by Oktyabrskaya is 53% more expensive than the similar unit produced by Kstovskaya, up 20% compared to Electrogorsky and Buguruslanskaya goods.