Key financial indicators
Moreover recent years EPK have been remaining the most profitable company among the presented companies.
Dynamics of revenue, prime cost and Company profit from 2005 to 2010 is presented on diagrams.
The revenue in 2010 exceeded the indicator of 2009 on 3 117 million roubles at the expense of increase in volume and change of sales structure on + 4 207 million roubles, and decrease in the average price of 1 bearing for 11 % gave 1 094 million roubles that is connected with increase in the share of the automobile segment on Company sales.
In 2010 the structure of prime cost changed as follows: share of materials decreased for 2%, share of labor costs decreased for 4% (at growth of an average salary of employees of EPK by 24%). For a year the cost of the main metal grew on 17% average, electric power tariff grew on 24% that managed to compensate by using unreserved metal and the headcount optimization carried out in 2009. The share of business expenses managed to low to 2,6 % from the revenue at level of 3,8 % in 2008.
Following the results of the reporting period the size of the working capital increased on 159 million roubles generally due to the growth of the debit receivable.
The turnround of the receivables is fixed at level of 2008. However the changes concerned its structure: the share of advance payments (generally for metal) grew on 7% against decrease in a share of a trading receivables on 6%. Monthly average revenue for 2010 in comparison with 2009 grew on 41%, and trading receivables grew only on 36% showing the effective work with the buyers of finished goods.
The turnround of stocks decreased to level of 2008 in connection with growth of cost of sales (as a result of revenue growth); the size of stocks practically didn't change. However the structure of stocks underwent changes: during 2010 the volume of finished goods in warehouses decreased on 13% against increase in stocks of raw materials and a work in progress at 5 % and 9% respectively that certainly is important achievement of the Company.
The turnround of accounts payable decreased owing to the evolved prime cost of finished goods.
Having refinanced the debts the Company considerably improved its financial condition. The share of debt funds following the results of 2010 is 31% against 37% for the end of 2009, however the debt structure considerably changed, the share of short-term debt funds is 21% against 60% for the year before.
The Company with a large supply sustained the covenants established by the creditor, namely: current liquidity ratio is 3,3 against min 1,15; a debt ratio to EBITDA is 1,6 at max 3,5; debt service coverage ratio (DSCR) is 3,1 against min 1.
The EPK investment program in 2010 was focused on purchase of the new equipment, development of large projects, production automation, research and developmental works, and also on certification of new production and QMS. The total amount of financing of investment activity for 2010 grew by 85% in comparison with 2009 and made more than 290 million roubles.
The main part of the investments was intended for purchase and the equipment modernization, the second place was occupied by investments in repair of buildings and constructions (see fig. 8).
Among the Corporation' enterprises Plant of Aviation Bearings came out on top onthe volume of investments in 2010 (nearly 72 million roubles). The main share of means (64%) was spent for purchase and renovation of the equipment, including they renovated the machines EUROSHLIF of SIW-5 and SWaAGL 315 models, purchased the processing center for manufacturing of cages, the machine for grinding generant of spherical and conic rollers of models. AGR50, 1 line on vibroprocessing of massive cages. The second place was occupied by Saratovsky Bearing Plant with the investment program of 66 million roubles the main part of which is works on reconstruction of foundry engineering, and also the induction furnace itself.
The investment program of Stepnogorsky Bearing Plant consisted of the whole complex of introduction of technologies, acquisition and restoration of equipment, including acquisition of two machines of the SXK model, i.e. 7А for polishing of the end face of a roller, purchase of the turning and revolving center with PNC model TL — 15HE by HAAS AUTOMATION INC. production, USA.
On the whole the investment policy of the Company was focused on the development of the existing projects and carrying out modernization of the enterprises.