17 May 2010 19:28

VSMPO-Avisma posts losses in Q1

MOSCOW. May 17 (Interfax) - VSMPO-Avisma closed Q1 2010 with net losses of 133.6 million rubles to Russian Accounting Standards (RAS), compared with profit of 87.2 million rubles a year previously, the Russian titanium producer said in a statement.

Sales revenue grew 10% year-on-year to 5.544 billion rubles, but gross profit fell 36% to 1.44 billion rubles.

Revenue was driven by an 86.7%-increase in sales volume, lower factory-gate prices and changes to the product mix.

The company's short-term debt burden eased 52.5% to 10.5 billion rubles, while the long-term burden increased from 5.3 billion rubles at the end of March 2009 to 11.6 billion rubles at the end of the last quarter. Restructuring short-term debt was a priority job during the reporting period, company management said recently.

Production costs rose 50% to 4.1 billion rubles, while sales profits dropped 60% to 549 million rubles.

VSMPO-Avisma made 216 million rubles in combined profit from exchange-rate variance in Q1, unlike the 677 million rubles in combined losses it incurred in the same quarter last year.

The state Russian Technologies (Rostekhnologii) corporation owns 66% of VSMPO-Avisma, which is Russia's biggest titanium producer.