Net profit of enterprises of aircraft and helicopter industries

Information agency Credinform prepared a ranking of companies of aircraft and helicopter industries.

The companies with the highest volume of revenue were selected for this ranking according to the data from the Statistical Register for the latest available period (for the year 2013). These enterprises were ranked by decrease in net profit for the period.

Net profit/loss (in RUB) is undistributed profit / uncovered loss of the accounting period remained after payment of income tax and other similar obligatory payments. It is an integral index of company’s market activity, effectiveness of its management and financial strategy.
An increase of net profit means, that an enterprise has attracted new clients, expanded its market presence, cut costs, but its decrease and moreover being in the red signal to the management about the change of business environment or about problems inside the organization, what requires to take steps to prevent bankruptcy.

For getting of the most comprehensive and fair picture of the financial standing of an enterprise it is necessary to pay attention not only to average values of profit, but also to all available combination of financial data.

Table. Turnover, net profit and solvency index of the largest enterprises of aircraft and helicopter industries (TOP-10)
NameRegionTurnover, in mln RUB, for 2013Net profit, for 2013, in mln RUBSolvency index GLOBAS-i®
1 Ulan-Udensky aviatsionny zavod OJSC
INN 0323018510
Republic of Buryatia 36 739 6 987 233 high
2 Kazansky vertoletny zavod OJSC
INN 1656002652
Republic of Tatarstan 42 290 5 392 207 high
3 Rostvertol OJSC
INN 6161021690
Rostov region 31 453 3 999 207 high
4 Ufimskoe motorostroitelnoe proizvodstvennoe ob’edinenie OJSC
INN 0273008320
Republic of Bashkortostan 37 652 2 554 192 the highest
5 Aviatsionnaya kholdingovaya kompaniya Sukhoy OJSC
INN 7740000090
Moscow 79 920 1 284 258 high
6 Korporatsia Irkut OJSC 
INN 3807002509
Moscow 58 142 1 044 208 high
7 Permsky motorny zavod OJSC
INN 5904007312
Perm territory 16 822 278 290 high
8 Rossijskaya samoletostroitelnaya korporatsiya MiG OJSC
INN 7714733528
Moscow 30 338 50 286 high
9 NPO Saturn OJSC
INN 7610052644
Yaroslavl region 17 678 -2 900 294 high
10 Grazhdanskie samolety Sukhogo CJSC
INN 7714175986
Moscow 20 039 -9 986 293 high

Picture. Net profit and turnover of the largest enterprises of aircraft and helicopter industries (TOP-10)

companies of aircraft and helicopter industries

The turnover of the largest enterprises of aircraft and helicopter industries (TOP-10) made 371,1 bln RUB, according to the latest published annual financial statement, that gives about 64% of the revenue of all companies of the market.

Except NPO Saturn OJSC and Grazhdanskie samolety Sukhogo CJSC, all participants of the TOP-10 list showed the net profit for the accounting period.

The most profitable organization among the top companies is Ulan-Udensky aviatsionny zavod OJSC (Ulan-Ude Aviation Plant), the net profit ratio made approximately 7 bln RUB. The plant produces Mi-8/17 helicopters: civil models Mi-8AMT and Mi-171, and military Mi-8AMTSh and Mi-171Sh. The plant is also preparing to start production of the new upgraded helicopter Mi-171A2, one of the core models of the holding «Vertolety Rossii» in the range of medium helicopters. The production of Ulan-Udensky aviatsionny zavod is supplied to governmental and commercial customers in Russia and around the world, and is operated successfully in more than 40 countries of Europe, Asia, Africa, South America, Australia and Oceania. The amount of units of aerotechnics produced by U-UAZ approaches 10 000.

Grazhdanskie samolety Sukhogo CJSC, specializing in production of new Russian aircraft Sukhoi Superjet 100, showed the largest net loss: app. 10 bln RUB. However, considering that there are 175 aircrafts in company’s order book (as of January 2015, total units transferred to customers - 54), then the manufacturer is expected to come out to the break-even zone.

According to the independent estimation of the Information Agency Credinform, all TOP-10 companies got a high and the highest solvency index. This fact points to that the largest market players can pay off their debts in time and fully, while risk of default is minimal.


The Ministry of Finance counted the potential budget deficit in the current year

The Ministry of Finance leaves open the possibility of emergence of the risks of federal budget implementation in the current year with the deficit just over 3% GDP. This was pronounced by Anton Siluanov, the Minister of Finance, to the journalists at the end of 2014.

Having said that Mr. Siluanov stated that such a pessimistic forecast is realistic providing that the current dynamic of oil prices and economic growth rates remain the same.

The head of the ministry expressed an opinion that even if the limits for the next year are reduced by 10 %, it won’t be enough to balance the budget. At the same time, he stated that the Ministry has several ideas on further measures necessary for optimizing of the budget. In this issue two ways of development are suggested: either gradual consolidation or optimization of budget in accordance with the current state of business, or use of the Reserve Fund in grater volumes.

Furthermore Mr. Siluanov stated that in 2015 the Ministry is off to come to decisions on budget and finances, orienting on the current situation. At the same time by 2017 the Ministry of Finance sets for itself a goal of the balanced budget at the oil price USD 70 p/b.

The head of the Ministry stated that concerning additional capitalization of banks the budget deficit in the current year will amount to 0,7% GDP. Earlier the Audit Chamber mentioned the figure 0,8-1% GDP.

It bears reminding that as of December 19, 2014 the State Duma passed the law on allocation of RUR 1 trillion as an asset contribution to the Deposit Insurance Agency for additional capitalization of banks through federal loan bond mechanism.