Mi-17 and devaluation benefit Kazan Helicopter at the six month stage

Published: 8/25/1999

Helped by the successful export of its Mi-17 helicopter in the first six months of 1999, the operating profits of the Kazan Helicopter Plant increased by nearly 50% over the period, to reach $34m, according to the company. As always with Russian accounts, it is difficult to tell just what is driving operating profitability, but the major factor appears to be the competitiveness gained by the ruble's devaluation. This cut production costs to $32m from $45.2m in the first half (H1) of 1998. Company sales remained virtually unchanged at $66m, compared to $68m in H1 1998, indicating a stable flow of orders. Despite this fact, General Director, Alexander Laventyvev, was reported as stating that he intends to increase the plant's marketing efforts, with the objective of doubling sales in 1999 over 1998. The company exports around 90% of its output, selling its key product, the Mi-17, for between $3.5-4m. The company has also seen a substantial decrease in accounts payable, to $13.3m as of July 1st 1999 against $61.5m a year ago.

Article ID: 785