OREANDA-NEWS. The company increased the output of Titanium products from 26,242 t in 2012 to 28,855 t in 2013, concurrently increasing the part of deep conversion products (die forgings are 23% up). In this context the revenue increased from 40,775 million rubles to 46,131 million rubles (13%), operation revenue increased from 10, 323 million rubles to 11,696 million rubles (13%).

Net income increased from 7,333 million rubles to 7,451 million rubles, however the growing rate (less than 2%) was apparently lower than that of the revenue. Exchange rate losses, caused by ruble fall in late 2013, became the crucial factor affected the financial results.

EBITDA for fiscal period increased by 4.7% and reached its historical peak of 12,458 million rubles. EBITDA margin is compared to that of 2012.

Average staffing number in 2013 comprised 20.5 thousand people, which is 500 people more against the previous year. At that output per man grew by 10.6% and comprised 2.2 million rubles per man.

Corporation keeps moving towards modernization of the production basis; main investment areas: product conversion deepening, forging and machining capacities development. Costs for investment program in 2013 amounted to 5,060 million rubles, which is 9.4% more than in 2012. Costs for research and development work amounted to approximately 450 million rubles.

VSMPO-AVISMA Corporation is one of the largest taxpayers in Sverdlovsk region and makes part of Top-200 of the largest taxpayers in Russia. Money, transferred to the budgets of different levels in 2013 amounted to 4,700 million rubles. Concurrently, Corporation remains socially-oriented enterprise -money, directed to fulfillment of social obligations in 2013 amounted to 750 million rubles.

Mikhail Voevodin, Director General, VSMPO-AVISMA Corporation, commented on the results of company's activity:

“Even though titanium demand in 2013 remained at the level of 2012, VSMPO-AVISMA managed to increase the revenue in 2013 and keep the high level of company margin by means of increasing the output of products with deep conversion and, consequently, high value-added. We have almost executed the plans targeted for 2013 to construct new production capacities and reconstruct and re-equip the existing ones. We will continue our development by increasing the volumes and deepening the conversion of supplied products, improving the products quality and supplies discipline”.

VSMPO-AVISMA Corporation is the world largest Titanium manufacturer with full production cycle: from raw materials processing to production of finished items with high-degree machining. Corporation supplies its products to 50 countries, it is deeply integrated in the world aerospace industry and is the main strategic supplier of many companies. Staff number - 20,000 people. The controlling interest is held by the management, blocking shareholding - 25% plus one share - is held by Rostec Corporation.

Rostec is Russian State Corporation established in 2007 to promote development, production and export of hi-tech industrial products for civil and defense sectors. It brings together 663 entities forming 13 companies, 8 of which operate in the defense-industry complex, and 5 operate in civil sectors. Rostec's organizations are located in 60 constituents of the Russian Federation and supply goods to over 70 countries worldwide. Rostec's revenue in 2012 amounted to 931 billion rubles, net income - 38.5 billion rubles. Tax payments to the budgets of all levels exceeded 109 billion rubles.