15 Nov 2010 15:48

VSMPO-Avisma RAS net profits plunge 80% in Jan-Sept

YEKATERINBURG. Nov 15 (Interfax) - The Russian corporation OJSC VSMPO-Avisma turned net profits of 384.75 million rubles as calculated to Russian Accounting Standards (RAS) in Q1-Q3, an 80% drop year-on-year, the company reported.

The corporation is a leading producer of titanium and magnesium alloys, including ingots and mill products. It also produces aluminum alloys, ferrotitanium, and other metal products.

The corporation's sales revenue went down by 7.2% to 17.7 billion rubles in the nine months.

The company said in its materials that its sales revenue decreased owing to changes in the structure of sold production and a drop in the U.S. dollar's rate.

"The corporation was forced to take such measures during the world financial crisis in order to secure the loyalty of its main counteragents and lay the foundation for an increase in total sales for 2011," the company said.

VSMPO-Avisma's main financial results in Jan-Sept 2010 (in thousands of rubles):

Result Jan-Sept 2010 Jan-Sept 2009
Sales revenue 17 771 539 19 144 867
Production costs 12 640 019 11 568 445
Gross profit 5 131 520 7 576 422
Profit from sales 2 299 907 4 921 203
Pretax profit 442 034 2 630 281
Net profit 384 750 1 944 887

VSMPO-Avisma's accounts receivable dropped to 110.878 million rules on September 30 from 119.137 million rubles at the start of the year. The company's accounts payable went up to 4.26 billion rubles from 2.934 billion rubles.

The state-run corporation Russian Technologies is VSMPO-Avisma's main shareholder with a 66% stock interest.