In an article published by Fortune Magazine,
Julio Ernesto Gutiérrez Conte, President of
Aeropuertos Argentina 2000, was asked about the strategy the Company will put in place to optimize their figures throughout 2010.
There is a range of alternatives the companies count on to improveprofitability. The experts indicate that the easiest ones to put inplace such as dismissing personnel and lowering general costs are themost dangerous and match schemes the largest companies try to avoid.Otherwise, lowering investments or changing their schedules is one ofthe smartest actions to take especially if a greater turnover of goodsis achieved in the trade area.
However, what some main businessmen do in Argentina and whatcorporative finance experts recommend on what to do to improveprofitability of a company, even in critical years like 2009?
On their side, AA2000 have focused on investments in order tomaintain profitability. They had an ambitious long term investment planto be financed and as the loan vanished because of the global financialcrisis, they decided to undertake works at a different pace thusamending their investment schedules and financing them with their ownincome.
Ernesto Gutiérrez, President of the Company,highlights how they acted in order to maintain profitability throughoutthe international financial crisis without having to resort tocost-cuts or suspension of investment plans. “Projects ofInfrastructure Works have two alternatives: they are completed in themid-term through the company’s own cash flow or they are completed inthe long term through financing to be repaid by the cash flow generatedin the medium term.
The absence of credit has caused our investment schedules to bechanged: all the Works to be done in the short term and having a veryhigh impact, have been achieved in the medium term, when the situationstarted to improve, he explains. The advantage at AA2000,based on Gutierrez’ statements, was that the company has a favourableflow and this allows us to have cash flow to make the scheduledinvestments but at a different pace. “Our expectations for the year2010 are very positive regarding procurement of financing due to animproved international situation and specially due to the actions beingtaken by the Economy Management within the National Government.
“A better access to the credit line will allow local companies to finance their investment plans, he thinks.
