Oleg Deripaska's Basic Element is expecting major deals to follow recent purchases of stakes in Magna International, Strabag and Hochtief.
Photo: Dmitry Azarov
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Basic Element Posts 40 Percent Rise in Revenue in 2006
Russian industrial conglomerate Basic Element has presented financial results for 2006, announcing a 40 percent increase in revenue, to $18.5 billion, and a 60 percent rise in assets’ value, to $23 billion. The company won’t link the growth to recent acquisitions.
Each business of the holding is planning to grow 5 percent a year, Basic Element’s director general Gulzhan Moldazhanova told reporters Thursday. She added that the company is expecting major deals to follow recent purchases of stakes in Canada’s Magna International, Australia’s Strabag and Germany’s Hochtief.
The shares of revenue in Basic Element’s different business sectors have largely remained the same since 2005. In 2006, Rusal accounted for 75 percent of revue in Basic Element’s $10.8 billion metallurgy sector. In the second-largest machinery sector, revenue grew 28.5 percent, to $4.5 billion. Financial services reaped $ 1 billion, up 77.3 percent.
The company does not disclose the value of assets sector by sector. Among the most prominent acquisitions in 2006 was LDV, a British LCV manufacturer.
Basic Element says that the value of assets went up not because of its acquisitions but thanks to high prices on raw materials and growing stocks. Stocks of car maker GAZ, for one, went up 63 percent in value in 2006.
Analysts find it hard to comment the announced figures, saying Basic Element is quite a closed company which provides too little information to judge on the growth sources.
www.kommersant.com
All the Article in Russian as of June 22, 2007
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