UAC sets sight on civilian markets

Russia’s United Aircraft Corporation (UAC) increased the proportion of commercial aircraft in its total output last year and intends to continue with this strategy. The corporation’s 2012 revenues amounted to 171 bln rubles ($5.5 bln), or 6% up on the 2011 results. Its EBIT reached 217 mln rubles and its net loss shrank 58% to 5.650 bln rubles.

"Our key priorities in 2012 were to cut costs, modernize production capacities, and increase our operating margin," says Vladimir Chirikov, UAC Vice-President for Economics and Finance. "The corporation’s main goal for the next two years is to break even." Chirikov notes that UAC’s revenue has grown by more than 70% from the 2009 level, while its net loss has decreased five-fold. The corporation expects to get over 220 bln rubles in IFRS consolidated revenue this year.

UAC built 102 aircraft in 2012. As of 31 December, its firm backlog had exceeded 450 airframes. According to the management, the current development strategy calls for a sharp increase in the output of commercial aircraft. UAC plans to have brought the proportion of civilian products up to 20% in its total sales.