OREANDA-NEWS. The gains in 2012 grew to 23.4 billion rubles - a 22.7% increase over the same in 2011 (19 billion rubles respectively). This is attributable to a step-up in production volumes and aeroengine maintenance activities, including the portfolio of the state-guaranteed defense orders, as well as to an enhanced average yearly output per worker.

Net profits went down 3.5% to 159.9 (160, as in the Statement) million rubles against 165.7 million rubles in the previous year. The slight decline of the net profits came as a result of a hidden lost value in work-in-progress (WIP) write-off.

In 2012, the managerial board was able to lower the indebtness under credits from 15.2 billion rubles down to 13 billion rubles, thus lending the company more financial stability. The debt-to-income ratio was 63%, whereas in 2011 it had been reckoned to be as high as 86%.

Vladislav Masalov, Director General of FSUE “Gas-Turbine Engineering RPC “Salut” made this comment on the published business results: “For our company, it was a year of continued steady growth and successful implementation of tasks. The contractual obligations to our Customers were 100% fulfilled and Salut's financial and economic performance proved to be significantly higher than the average level throughout this industrial segment. On the eve of becoming a corporatized entity, we managed to considerably reduce the hidden losses in WIP and apply focused efforts towards cutting production costs and keeping expenses under control. Furthermore, we were instrumental in opening up new cooperation areas with other aeroengine producers of the United Engine-Building Corporation within the framework of its “Combat Aircraft Engine” Division: the first AL-31F engines produced in cooperation have already come into being.”

In 2012, the average salaries of production personnel (exclusive of OMO Baranov, now in merger with Salut) have risen to 36 606 rubles compared to 31 169 a year before.

The average early output per employee has also improved reaching 1.6 million rubles, which is almost 30% higher than in 2011.