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Rostec's Net Profit Exceeded $2 billion in 2018


Press Trust of India MOSCOW
/ -- The revenue of Rostec State Corporation in 2018 reached $26 billion (RUB 1,642 trillion), with almost two-thirds of it accounting for sales of civilian products and export of high-tech solutions. The company's consolidated net profit exceeded $2 billion (RUB 128 billion). This was reported by Rostec CEO Sergey Chemezov during a meeting with Russian President Vladimir Putin on July 22.
Presenting the Corporation's annual report, Mr. Chemezov said that in 2018 Rostec fulfilled the State Defense Procurement Order by 99.6% and is ahead of time in fulfilling the state-set objective to diversify its production: the share of civilian products in the total revenue increased by 1.5 percentage points and reached 30%.
"The past year also set a record in the export of Russian weapons. The total volume of supply by Rosoboronexport amounted to $13.7 billion. The stable portfolio of foreign orders for Russian military machinery has reached $55 billion," Rostec CEO Sergey Chemezovnoted. "Rostec's key financial indicators are growing as well. We managed to increase our net profit by almost 6% compared to last year. Our net profit margin in 2018 amounted to 7.8%."

In 2018, the Corporation made significant efforts to rehabilitate distressed industrial assets recently transferred to Rostec.
Thus, the Corporation continued its activity on the integration of Uralvagonzavod (UVZ) holding into its structure. By the time of the transfer, the company's consolidated loss amounted to $66 million (RUB 4.2 billion). The support from the State Corporation helped UVZ cut its losses by half - to $33 million in 2018, while its revenue from civilian products increased (share in the total revenue reached 38.2%) along with other financial indicators of the holding.
In addition to that, last year saw the start of the transfer of United Aircraft Corporation's (UAC) enterprises under the management of Rostec. The rehabilitation process and the implementation of civil aviation programs require significant investments and are aimed at creating a national-level Russian aircraft producer to encompass design, parts manufacturing, the final assembly of air- and rotorcraft, and after-sales service. The aviation cluster will become the most powerful one in the structure of Rostec: its total revenue will exceed $15.8 billion (RUB 1 trillion) per year.

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First Published: Jul 30 2019 | 10:40 AM IST

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