Dec 20, 2013

UVZ Corporation summed up the year

The corporation management held its final meeting with the directors of subsidiaries and affiliates in Moscow, chaired by UVZ CEO Oleg Sienko.

Chief Financial Officer Ruslan Kondrashov reported the expected consolidated receipts of corporation over $2,9 bln. For certain activities the receipts will exceed the plan. For instance, the receipts of "Logistics and Services" branch is $197 mln, that is $60 mln over the plan.

Net profit for the year is expected to exceed $9.1 mln. Thereby the corporation, due to increase of government defense contracts, maintained a positive trend in profitability, despite a significant decline in the rolling stock market both in quantity and price.

The  meeting noted an  important rate of internal cooperation, that indicates formed corporation structure and organized  co-operation between its companies. By the end of 2013 it amounts almost $ 455 mln, whereas five years ago in didn’t exceed $ 30 mln.

During the meeting it was pointed that the corporation strictly fulfills all social obligations stated in collective agreements, including wage growth, which is by the end of 2013 year $1000 on average. Meanwhile, number of employees in 2013 remains at the level of 2012.

The corporation’s main objectives for 2014 were pointed in the report of First Deputy Chief Executive Officer Yury Bodiaev. The planned volume of government defense contracts next year will twice against the 2013 volume. For the division of railway engineering it is planned to produce and sell about 22 000 freight railway cars of all kinds in 2014,  that means not less than 7% increase in sales compared to the current year.

It shows that despite the decline of demand the corporation maintains  the all-time high volume of production of freight railway cars and tanks achieved in the recent years. It was realized partly due to in advanced made decision on establishment and development of the subsidiary railway operator "UVZ –Logistics”.

UVZ also plans to enter new markets in 2014, to increase production of innovative products and line of specialized railway cars, to increase production and sales of trams.

In conclusion, Oleg Sienko, UVZ CEO, noticed that next year is also not expected to be economically easy, but companies of the corporation have everything essential to find new points of increase and keep the dynamical development, based on the achieved positions in the transport and special purpose machinery.