Ruch turns around losses with intelligent restructuring

At the end of last year Ruch had a zl. 46.3 million loss, however, this year the results are expected to match those from two years ago when net profit amounted to zl.24 million. The company is implementing a restructuring program that is likely to bring several million in savings. It has also set up a central sales department and renegotiated contracts with suppliers. By 2008 net margin is expected to rise by 2%. Ruch is also cutting prime costs which means zl.4 million of savings by the end of this year. Six months ago half of Ruch's branches were reporting losses. Today the number of unprofitable branches has halved. The company is also preparing to enter the stock exchange, with money earn to be spent on investments in its sales network and marketing. (Puls Biznesu p.10) M.M.