Jan 10, 2012



UVZ’s Board of Directors held its end of the year meeting in Moscow. The meeting devoted to financial and economic issues was attended by the top managers of the Corporation Management Center and the chief executives of the associated companies. An opening speech was made by Yevgeniy Shkolov, the chairman of the board of directors. According to Yevgeniy Shkolov, the year 2011 was successful for many of the UVZ’s business lines. He also pointed out that the government will continue encouraging the corporation to develop. Vladimir Shmakov, first deputy CEO and Ruslan Kondrashov, Chief Financial Officer were the keynote speakers.

In his speech Vladimir Shmakov touched upon the achievements of the corporation and its prospects. 2011 has seen UVZ execute 18 contracts for up to 8.2 billion rubles within the frame of Defense Procurement and Acquisition Policy. The sum is expected to increase in 2012. In 2011 the corporation faced several obstacles while executing the contracts. The biggest one was that the paperwork on the contracts was completed with little time left to execute them. As a result profitability of the contracts turned out to be extremely low. Still UVZ is intended to fulfill its responsibilities under the contracts in 2012 and to expand the scope of export supply in 2013/2014. 

Railway engineering is another yardstick of success for UVZ. In 2011 UVZ showed record high capacity and produced 25000 cars in Nizhny Tagil. As of today, the corporation has signed contracts for 2012 and period contracts up to 2015. The year 2011 has seen UVZ recommence production of the new generation gondola cars 12-196-01 with 25-tf axle load. Moreover, the number of bogies produced increased manifold which triggered dumping cars market development. 

In 2012 the Division of Railway Vehicles will focus on keeping production and sales level up to 25 000 cars and maintaining UVZ’s casting capacities.

Ruslan Kondrashov has reported on financial outcome for the year: target financial performance was up to what has been expected. Net income amounts to $330 million and revenue equals $3 billion.

Oleg Sienko, UVZ CEO made a final speech. He defined the top objective for UVZ as becoming a world leader in machine building industry. The corporation is intended to develop and extend in 2012 and in the long-term prospective.

The board of directors has drafted preliminary balance for 2011 and approved consolidated budget for 2012/2014.