News

15.03.2005

In 2005 FY PERM MOTORS plans 1.5-time growth of profits

Since January 2004 the authorities of the sole executive board of PERM MOTORS Holding companies and enterprises have been transferred to PERM MOTORS GROUP Management Company. The activities of the Management Company aimed at optimization of PERM MOTORS GROUP companies and enterprises costs and improvement of production efficiency has made it possible to reduce the production costs and achieve the rise in net profit and sales.

The improvement of products and services quality, entry the market with new developments allowed PERM MOTORS GROUP companies to increase the sales by 32% in 2004 FY compared to 2003 FY. In general the annual sales plan of PERM MOTORS GROUP was exceeded by 14.8% and amounted to 11,449 million rubles. The growth was indicated practically in all products range and in particular six PS-90A aero-engines (only one engine in 2003), 77 industrial gas turbines (64 turbines in 2003) and 16 industrial gearboxes (6 gearboxes in 2003). For 2005 FY it is planned to increase the sales of PERM MOTORS GROUP sales by 7%.

In 2004 FY the companies achieved 80% growth of accumulated profits due to more efficient commercial operations and reduced relative production cost. In 2004 FY PERM MOTORS GROUP net profit was 308 million rubles, that is 7% higher than that was planned. In 2005 FY it is planned to raise the net profit of PERM MOTORS GROUP companies in 1.5 times.

Last year the relative production cost was reduced by 3%. It became possible due to some improvements made by the Management Company and aimed at cutting the expenses, optimizing sales and establishing the effective procedure of controlling the materials, expenditures and repair processes.

The policy of costs reduction implemented by PERM MOTORS GROUP companies made it possible to increase the salaries by 10% last year. In 2005 FY it is planned to raise the salaries in PERM MOTORS GROUP by 10%, from 9,942 rubles to 11,501 rubles.