Life & Style
Foreign tourists to Việt Nam rose 41% in January-November
1.
BEIJING, CHINA - Media OutReach - 26 July 2019 - Therevenue of Rostec State Corporation in 2018 reached $26 billion (RUB 1,642trillion), with almost two-thirds of it accounting for sales of civilianproducts and export of high-tech solutions. The company's consolidated netprofit exceeded $2 billion (RUB 128 billion). This was reported by Rostec CEOSergey Chemezov during a meeting with Russian President Vladimir Putin on July22.
Presenting the Corporation's annualreport, Mr. Chemezov said that in 2018 Rostec fulfilled the State DefenseProcurement Order by 99.6% and is ahead of time in fulfilling the state-set objectiveto diversify its production: the share of civilian products in the totalrevenue increased by 1.5 percentage points and reached 30%.
"The past year also set a record in theexport of Russian weapons. The total volume of supply by amounted to $13.7billion. The stable portfolio of foreign orders for Russian military machineryhas reached $55 billion," Rostec CEO SergeyChemezov noted. "Rostec's key financial indicators are growing aswell. 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 significantefforts to rehabilitate distressed industrial assets recently transferred toRostec.
Thus, the Corporation continued itsactivity on the integration of Uralvagonzavod (UVZ) holding into its structure.By the time of the transfer, the company's consolidated loss amounted to $66million (RUB 4.2 billion). The support from the State Corporation helped UVZcut its losses by half - to $33 million in 2018, while its revenue fromcivilian products increased (share in the total revenue reached 38.2%) alongwith other financial indicators of the holding.
In addition to that, last year saw the start of thetransfer of United Aircraft Corporation's (UAC) enterprises under themanagement of Rostec. The rehabilitation process and the implementation ofcivil aviation programs require significant investments and are aimed atcreating a national-level Russian aircraft producer to encompass design, partsmanufacturing, the final assembly of air- and rotorcraft, and after-salesservice. The aviation cluster will become the most powerful one in thestructure of Rostec: its total revenue will exceed $15.8 billion (RUB 1trillion) per year.
About Rostec
Rostec is a Russian State Corporation that wasestablished in 2007 to facilitate the development, production and export ofhigh-tech industrial products designed for civilian and military applications.The Corporation comprises over 700 organizations that are currently part ofeleven holding companies operating in the military-industrial complex and threeholding companies working in civilian industry, as well as over 80 directlymanaged organizations. Rostec's portfolio includes well-known brands such asAVTOVAZ, KAMAZ, Concern Kalashnikov, Russian Helicopters, UralVagonZavod, etc.Rostec companies are located in 60 constituent entities of the RussianFederation and supply products to the markets of more than 100 countries.According to Rostec's strategy, the main objective of the Corporation is toensure that Russia has a technological advantage in highly competitive globalmarkets. Rostec's key objectives include the introduction of a newtechno-economic paradigm and digitalization of Russian economy.
