Power Machines OJSC publishing financial statements for 2009

Power Machines OJSC made accounting statements for 2009 prepared in accordance with Russian Accountancy Standards (RAS) and International Accountancy Standards (IAS).

Financial results of Power Machines’ activities during 2009 show an increase in general business efficiency and financial stability of the Company. The key factors to have conditioned financial growth are order portfolio diversification, enhanced intensity of the production capacities utilization, an increase of the manufactured equipment delivery quantities, as well as comprehensive measures aimed at improving labour efficiency and lowering costs.

According to IAS data Power Machines’ revenues in 2009 amounted to $ 1,852,633 thousand, a 41% increase compared to $ 1,312,285 thousand in 2008.

The Company’s net profit reached $ 193,281 thousand, an increase of 2.4 times as compared to $ 79,626 thousand in 2008.

According to RAS data Power Machines’ revenues in 2009 amounted to 51,783,946 thousand rubles, a 88% increase compared to 27,540,707 thousand rubles in 2008.

Gross profit for 2009 amounted to 15,187,501 thousand rubles, which 2.2 times exceeds the corresponding figure (6,974,232 thousand rubles) reported in the accounting period of 2008.

The Company’s net profit reached 6,005,663 thousand rubles, an increase of 7 times as compared to 851,432 thousand rubles in 2008.

Financial results for the year were positively impacted by price escalations that occurred during working with customers under the contracts for Sipat and Uong Bi thermal power plants.

In the course of the year, Power Machines’ order portfolio has grown by 12% to attain $ 3,653 mln at the end of 2009.

In 2009, Power Machines’ R&D investment totaled 1.99 bln rubles. The Company’s investment program envisages implementing a set of measures aimed to encourage innovation with a view to developing new products, which by their technical performances would correspond to or surpass similar products of world’s manufacturers. The program also involves retooling design and research facilities, etc.

Financial Statements of Power Machines OJSC for 2009
in accordance with International Accountancy Standards (IAS)

Indicator

2009
$ thousand

2008
$ thousand

Revenue

1,852,633

1,312,285

Production cost

(1,378,776)

(1,051,468)

Gross profit

473,857

260,817

Operational profit

244,719

50,548

Profit before taxation

231,666

58,217

Net profit

193,281

79,626

EBITDA

297,018

128,393


Financial Statements of Power Machines OJSC for 2009
in accordance with Russian Accountancy Standards (RAS)

Indicator

2009
thousand rubles

2008
thousand rubles

Revenue

51,783,946

27,540,707

Production cost

(36,596,445)

(20,566,475)

Gross profit

15,187,501

6,974,232

Profit on sales

9,406,967

2,161,169

Net profit

6,005,663

851,432