Russian Machines looks to up 2012 IFRS sales revenues 27%
TVER. May 22 (Interfax) - The holding Russian Machines, whose main asset is the GAZ automotive group, is looking to increase sales revenues as calculated to International Financial Reporting Standards (IFRS) by 27.3% to 200 billion rubles this year, the holding's General Director Alexander Filatov told the press.
"We will hit 200 billion rubles in 2012," Filatov said. Sales revenues amounted to 157 billion rubles in 2011.
Filatov did not provide a net-profit forecast for this year, but they topped 5 billion rubles last year.
At the opening of Russian Machines' joint venture with the company Terex, Filatov said that first-phase investment in the JV's four production floors this year will run to 600 million rubles.
The JV will be working at the production premises of Russian company enterprises, among them Tver Excavator, Bryansk Arsenal , Chelyabinsk Road Construction Machines, and Zavolzhsky Plant for Caterpillar Tractors .
GAZ Group and Terex Corporation signed an agreement on May 30, 2011 for the creation of a JV for the production of construction and road equipment in Russia. This concerns the localization of Terex's production in Russia, the modernization of GAZ Group's production facilities, as well as promotion of the JV's production in Russia and export markets.
Terex is transferring production technology for road construction equipment to the JV while GAZ Group is providing production facilities and personnel resources, as well as access to dealer chain for the sale of the JV's production. The companies have yet to announce total investment. The JV will commence at the start of 2012. Production will be organized a GAZ Group's plants, including Tver Excavator, Bryansk Arsenal, Chelyabinsk Road Construction Machines and ZZGT.
Terex Corporation is a multi-sector producer with operations in four commercial areas: the production of underground equipment, construction equipment, cranes and the manufacture of materials. Terex produces a wide range of equipment for use in various industrial sectors, including construction, infrastructure, mining, ship operations, cargo transport, energy, manufacturing and utilities.