Power Machines OJSC publishes financial statements for 2012 prepared in accordance with international accounting standards (IFRS)

Power Machines OJSC, Russia’s largest manufacturer of power engineering equipment, announces its financial results for the twelve months of 2012 in accordance with international accounting standards (IFRS).

Consolidated statements have been compiled for the group of companies belonging to Power Machines OJSC taking into account its subsidiaries including EMAlliance PJSC being a 100-percent subsidiary of the Company since February 2012.

The KPMG company has performed an audit of the financial statements.

The key indicators for 2012 have improved compared to the previous period.

The Company’s revenue for the 12 months of 2012 has amounted to USD 2.095 billion which exceeds the same indicator for 2011 by 23%. The Company’s gross profit for the 12 months of 2012 has amounted to USD 689.4 million which is up by 21% compared to this indicator for the reporting period of 2011. The operating profit has grown by 30% and amounted to USD 487.3 million at the end of the reporting year.

The net profit of Power Machines OJSC has been increased by 17% and amounted to USD 377.3 million at the end of 2012.

The EBITDA has grown by 26% and amounted to USD 558.6 million at the end of the reporting year.

The growth of financial indicators has been significantly influenced by the implementation of a large-scale investment program aimed at improving the productivity, reducing expenses and minimizing production costs, increasing the rate of production capacities utilization and the volume of manufactured equipment shipments. Besides, the affiliation of EMAlliance PJSC to Power Machines OJSC has resulted in the integration of the businesses, thus providing the opportunity to raise additional resources for larger projects.

In 2013 Power Machines, guided by international best practice, are going to focus on the growth of the internal efficiency through the introduction of a new program – Power Machines OJSC Business System, which has been implemented since the middle of 2012. In accordance with this program oriented to the continuous optimization of production processes, improvement of design developments, safety of the personnel at work, customer satisfaction and increase of the efficiency of business processes, the Company expects to achieve cost reduction and higher competitiveness.

Key financial statements of Power Machines OJSC for the 12 months of 2012 according to International Accounting Standards


Indicator

12 months of 2012,
USD thousand

12 months of 2011,
USD thousand.

%

Revenue

2,094,596

1,702,856

123%

Production cost

(1,405,205)

(1,133,250)

124%

Gross profit

689,391

569,606

121%

Operating profit

487,339

373,647

130%

Profit before taxation

460,600

390,084

118%

Net profit

377,337

323,044

117%

EBITDA

558,603

443,860

126%