Uralvagonzavod Group reduces IFRS net losses by 25% in 2014
YEKATERINBURG. July 30 (Interfax) - OJSC Uralvagonzavod (UVZ) Group of companies reduced net losses to International Financial Reporting Standards (IFRS) by 24.8% year-on-year in 2014 to 5.293 billion rubles, the group said in an annual consolidated report.
The group's revenue rose 70% to 127.5 billion rubles.
The report said that revenue from sales of military equipment and spare parts amounted to 55.552 billion rubles (up 25.2%), rolling stock and spare parts - 3.326 billion rubles (down 70%).
The group's consolidated revenue from the sale of products on the domestic market rose by 110% in 2014 compared to 2013 to 100.055 billion rubles, the amount of revenue from exports remained level at 27.461 billion rubles.
"After the significant jump in the exchange rate of the U.S. dollar in relation to the ruble in October-November 2014, the exchange rate stabilized somewhat on June 30, 2015 and amounted to 55.524 rubles in comparison to the exchange rate on December 31, 2014 - 56.2584 rubles. Therefore the company's management is not expecting a substantial impact of the change in the exchange rate on profit in the next reporting periods, despite the presence of loans in dollars," UVZ said.
The group also said that the current "sanctions are not having a significant effect on its operating activity, because the group does not have substantial assets outside of Russia, however some difficulties are being observed in cooperation with Russian banks, which also were on the sanctions list."
Financial highlights of UVZ Group (in mln rubles):
| 2014 | 2013 | |
| Revenue | 127 516 | 74 632 |
| Cost of sales | 95 081 | 55 697 |
| Gross profit | 32 435 | 18 935 |
| Pretax profit (losses) | (8 767) | (8 209) |
| Net profit (losses) | (5 293) | (7 036) |
UVZ is a corporation with more than 30 industrial enterprises, research institutes and construction bureaus in Russia and Europe, which develops and produces military hardware, road-building vehicles and railway cars.
