OREANDA-NEWS. May 06, 2014. GAZ Group, a part of Russian Machines holding, summed up its performance for 2013 according to International Financial Reporting Standards (IFRS).

Based on results of 2013, GAZ Group revenue increased 13%, amounted to RUR 143.4 B, and reached the pre-crisis level for the first time since 2008. The revenue per employee increased by 11% and amounted to RUR 215 k per month, which is a peak value for the company history.

In 2013 GAZ Group continued large-scale investment of the future projects related to update of its product portfolio and revamp of processes. Last year the company started the serial production of new generation GAZelle NEXT vehicles, launched manufacturing of GolAZ and LiAZ buses for Sochi Olympic Games, and new medium Vector buses. Last year GAZ Group continued development of highly efficient CNG vehicles and started the serial production of methane-fueled GAZelle Business vehicles and PAZ buses, developed CNG KAVZ bus and started R&D activities for creation of YaMZ-530 based CNG engine. In 2013, GAZ Group introduced a new development of Ural Plant for the Russian Ministry of Defense – multifunctional armoured vehicles.

In 2013 Gorky Automobile Plant launched production of as many as five international brand models within the framework of the industrial cooperation with Volkswagen, General Motors and Daimler, which is an unprecedented event in the global automotive history. To provide components of the global level for its in-house products, as well as to improve efficiency of its manufacturing plants, the company launched several component localization projects, i.e. Yaroslavl Engine Plant started manufacturing of Mercedes OM-646 engines; GAZ Plant began production of Mitsubishi Pajero Sport frames and signed a letter of intent with MW Group on establishment of modern wheel production; activities on set-up of JV with Bulten for manufacturing of fasteners are in progress.

The investments in update of the product portfolio and revamp of processes amounted to RUR 8,9 B in 2013.

Concurrent investment in a number of large-scale projects across all business segments caused increase of costs and growing demand for working capital. As a result EBITDA of 2013 was RUR 12.7 B, which is RUR 1.6 B lower vs. 2012. EBIT amounted to RUR 9.8 B, which constituted RUR 3.2 B decrease vs. 2012. At the same time, GAZ Group earned RUR 4 B of net profit in 2013.

The President of GAZ Group Vadim Sorokin: "In the end of 2013 the market of commercial vehicles demonstrated a negative shift for the first time within the last four years; in view of continuing negative economic trends the market recession is still in place. However, we are developing and manufacturing reliable, cost-efficient, up-to-date products, which are in high demand of the customers. Therefore, GAZ Group is maintaining its leadership at the market and has promising future outlooks. As early as in Q1 of 2014 we launched production of two new GAZelle NEXT models, i.e. a crew cab and mini-bus, and also set up manufacturing of new EvoTech gasoline engines. In February, 2014 our new LIAZ and GOLAZ buses were used to provide a proper level of comfortable and reliable transportation of the Olympics visitors and athletes. In the beginning of this year we signed a 3-year contract for supply of more than 1600 LIAZ buses to Moscow Region. We are enhancing activity related to improvement of our business efficiency (the expected savings of the cost reduction program in 2014 will be RUR 4 - 5 B), implementing sales promotion activities at the Russian market, developing exports and, the most important, manufacturing new products to ensure high competitive ability of GAZ Group this year and on a long-term basis".