Power Machines OJSC announces financial results for the first six months of 2013

Power Machines OJSC, Russia’s largest manufacturer of power generating equipment, announces financial results for the first six months of 2013, compiled in accordance with International Accounting Standards (IAS).

The consolidated statements were compiled for the group of companies within Power Machines OJSC and with account for subsidiary companies. The statements were audited by KPMG.

The Company's revenue for the six months of this year has amounted to 979,049 thousand US dollars, which exceeds the same indicator for 2012 by 6%. The Company's net profit for the six months of 2013 has increased by 21% in comparison to the same indicator for 2012 and amounted to 190,519 thousand US dollars.

Following the results of the six months of 2013, EBITDA amounted to 279,283 thousand US dollars – a 19% year-on-year increase.

The financial indicators consistently demonstrate the Company’s sustainable growth. The growth of financial indicators has been significantly influenced by the implementation of an investment program aimed at improving the productivity, reducing costs and minimizing production expenditures, increasing the rate of production capacities utilization and the volume of manufactured equipment shipments.

In the period from 2012 to 2014, the Company’s management, guided by the best international practices, implements a comprehensive programme Business System of Power Machines OJSC, which is targeted at enhancement of internal efficiency. In compliance with this programme, which is geared towards ensuring continuous optimization of production processes, perfecting design developments, improving occupational safety, satisfying customers’ demands and enhancing business processes, the Company plans to reduce costs and strengthen competitive advantages.

Key indicators of the 6M 2013 financial statements of Power Machines OJSC, compiled in accordance with International Accounting Standards

Indicator

6 M 2013,
thousand USD

6 M 2012,
thousand USD

%

Revenue

979,049

925,279

106%

Production cost

(661,464)

(637,096)

104%

Gross profit

317,585

288,183

110%

Operating profit

219,197

180,335

122%

Profit before taxation

228,829

189,864

121%

Net profit

190,519

156,920

121%

EBITDA

279,283

234,757

119%