Dec 31, 2010

Oleg Sienko: “The Corporation was successful in 2010”

The UVZ Corporation management centre (CMC) and the directors of enterprises, companies, design offices and institutes comprising the integrated structure gathered at the final meeting to effect the yearly settlement for 2010 and to state foreground tasks for 2011.

Oleg Sienko, CEO, opened the meeting by the statement that on the whole the UVZ succeeded in 2010. Total receipts of all companies affiliated with the Corporation exceeded $ 4 bln, and net income exceeded $ 300 mln.

As per Igor Fomin, Chief Legal Officer, and Ruslan Kondrashov, Chief Financial Officer, it is certain for today that the phase of integrated structure formation is completed and is merging into the consolidation phase. 

Ruslan Kondrashov reported some economic results of the year. He particularly noticed that the Corporation managed to decrease the amount of credits and loans about $ 500 mln and, at the same time, to reduce the average rate of interest considerably. Another important result is that the dept-to-EBITDA relation shall not exceed 2 in 2011. Besides in December the salary of the UVZ employees exceeded 22000 roubles. Next year the average salary shall be at least 23500 roubles.

The yearly results and plans for 2011 were also presented by Andrey Shlensky, Head of Division of Railway Vehicles. He announced that 20000 railway vehicles were produced in 2010 and it is planned to produce at least 24000 vehicles next year. Railway cars will also be produced at OJSC “Design Office of Transport Mechanical Engineering”, the Corporation production site located in Omsk.

The meeting agenda also included casting shortage and measures taken to solve the problem. Among such measures are acquisition of plant “Sambre et Meuse”, France, and involvement of facilities located at other production sites of the Corporation.

The state and prospects of the special equipment production were set forth by Vyacheslav Khalitov, Head of Division of Special Equipment. He particularly mentioned that the state defence order in money terms will not be decreased in 2011. Moreover the Division faces a number of challenges in new developments.

In conclusion, Oleg Sienko, CEO, stated that in 2010 the priority was financial stabilization to be replaced by dynamic development in 2011.