Power Machines OJSC publishing 2008 year-end financial statements

Financial results of Power Machine OJSC activities during 2008 show an increase in general business efficiency and good performance of the measures aimed at financial stabilization of the Company.

There have been generated consolidated interim financial statements of Power Machines OJSC for the nine months of 2008 terminating September 30, 2008 prepared in accordance with the International Accounting Standards (IAS).

Sales revenues during the nine months of 2008 totalled $920,346 thousand having thus increased by 72,7% in comparison with the nine months of 2007 ($532,804 thousand).

According to IAS data the Company’s net profit during the nine months of 2008 amounted to $30,198 thousand in comparison with $277,105 thousand loss in the same period of 2007.

During the nine months’ period the volume of money of the Company exceeded the volume of foreign credit by $209,636 thousand whereas during the nine months of 2007 the Company’s net debt was $ 53,055 thousand.

Free cash flow during the nine months of 2008 reached $302,083 thousand while during the nine months of 2007 the index had a negative value of –$56,822 thousand. 

Additionally Power Machines published the 2008 financial statements prepared in accordance with the Russian Accounting Standards (RAS).

Company’s revenues in 2008 attained the figure of 27.5 billion Rubles having increased by 55.6% compared to 2007. Net profit in 2008 totalled 851 million Rubles against 3.1 billion Rubles of net loss in 2007.

The key factors to have conditioned the growth of net profit in 2008 are the Company’s order portfolio diversification, enhanced intensity of the production capacities utilization and an increase of the manufactured equipment delivery quantities. As of January 1, 2009 the total cost of the Power Machines OJSC portfolio of orders was equal to approximately $3.24 billion. The portfolio including not only domestic, but also major export contracts for equipment delivery enables diversification of cash flow sources thus providing for Power Machine OJSC immunity to the global financial and economic crisis impacts. Besides, the Company’s current order portfolio is characterized by sector diversification, equipment being supplied for facilities of atomic, thermal and hydraulic power industries.

Director General of Power Machines OJSC Igor Kostin: "It is for the first time in several recent years that the Company has attained positive results in terms of financial indices. The 2008 results could have been even better if Power Machines had not proceeded with performance of multiple losing export contracts for packaged delivery of equipment to have been concluded in 2003-2005. Relying on the results of activities in the first quarter of 2009 one may expect Power Machines to maintain the positive trend during the current year. Towards this, the Company is continuously taking capacity enhancement and cost-efficiency measures".

Power Machine OJSC financial statements for the first nine months of 2008 to have been prepared in accordance with IAS

$ thousand

2007
(9 months)

2008
(9 months)

Sales revenues

532,804

920,346

Sales cost

(603,850)

(724,642)

Gross profit

(71,046)

195,704

Operational profit

(215,354)

29,541

Profit before taxation

(249,720)

31,127

Net profit

(277,105)

30,198

EBITDA

(201,101)

71,299

Free cash flow

(56,822)

302,083

Net debt

53,055

(209,636)

Power Machine OJSC financial statements for the first nine months of 2008 to have been prepared in accordance with RAS

thousand Rubles

2007

2008

Revenues

17,701,554

27,540,707

Cost

(15,332,603)

(20,566,475)

Gross profit

2,368,951

6,974,232

Sales profit (loss)

(1,894,599)

2,161,169

Net profit (loss)

(3,111,184)

851,432