Site news 20.10.2016
October 20, 2016, Rybisnk, Press-release
The anticipated net profit of Rybinsk NPO Saturn PJSC, one of the largest companies of United Engine Corporation (part of Rostec State Corporation), is about RUB 1 billion in 2016 and 1.5 billion min in 2017.
In 2015 the revenue of the company amounted to RUB 24 billion. Such performance can be explained by the completion of forming a diversified portfolio which includes participation in the government's defence order and import substitution programs as well as increase of exports and deliveries in commercial sectors of economy. It is expected that the further revenue growth will be attributed to the introduction of new advanced programs and products to the market (cooperation with EUC companies as related to aircraft engine manufacture, international cooperation, marine gas turbine engines and units).
“In 2016 NPO Saturn is keeping the trend of production ramp-up and product sales growth”, says Viktor Polyakov, Deputy General Director - NPO Saturn Managing Director. “In our estimation the sales receipts will be above RUB 30 billion. The budget targets are met fully and will be exceeded at the end of the year. The sales revenue of 2017 will amount to RUB 31.5 billion. The contracting work performed in the past 1.5-2 years enables us to say that the company has orders till 2020 and prospects for an annual revenue increase of 10% min”.
At the moment 47% of the company's portfolio of orders is due to government orders including the government's defence order, 34% is military and technical cooperation, the other 19% is commercial and power generation programs.
“Such a balanced portfolio allows us to be more flexible in our response to external conditions, thus leveling market fluctuations”, Viktor Polyakov points out. “The obtained financial results are also associated with a considerable amount of work performed in recent years and aimed at enhancement of the company's efficiency. Within the framework of these activities our internal processes have been reorganized considerably in order to optimize the economics and the technical characteristics of the product line: product divisions created, outsourcing development in progress, manufacture of parts within Centres of Competences, introduction of program/project management and lean production principles”.
For all the product programs NPO Saturn is implementing projects of cost reduction and marginal revenue increase, an energy efficiency improvement program has been deployed, the non-core asserts have been revised, the loan portfolio has been refinanced. etc.
United Engine Corporation (JSC) (a Rostec State Corporation company) is an integrated organization specialized in the design and development, serial production and after-market support of engines for military and commercial aviation, space programs, the Navy as well as for the oil and gas industry and power generation. One of UEC’s prioritized fields of activity is the implementation of comprehensive programs of development of the industry’s companies by introducing new technologies meeting the world-class standards. In 2014 revenues of the corporation amounted to RUB 199.9 billion.
Rostec State Corporation is a Russian corporation established in 2007 in order to facilitate the development, manufacturing and export of high-technology industrial products of military and commercial application. The corporation comprises 700 companies, which form 9 defense-industrial and 6 civil industry holdings as well as 32 direct control companies. The Rostec portfolio spans such renowned brands as AVTOVAZ, KAMAZ, Concern Kalashnikov, Russian Helicopters, VSMPO-AVISMA and others. Rostec’s subsidiaries are located in 60 regions of Russia and deliver their products to over 70 countries worldwide. In 2015 the consolidated revenues of Rostec were RUB 1 trillion 140 billion. The average wage of Rostec in 2015 amounted to RUB 41 000, the Corporation 's tax payments to the budgets of all levels exceeded RUB 160 billion. According to Rosctec's new strategy the primary objective of the Corporation is to secure Russia's technological advantage on highly competitive world markets. The target amount of investments in development till 2025 equals RUB 4.3 trillion.