Russia’s Kalashnikov arms maker says has 1 bln rbl loss in 2013

MOSCOW, Feb 7 (PRIME) -- Russian arms producer Kalashnikov incurred a loss of about 1.7 billion rubles in 2013 and is now getting ready to cut costs and management, General Director Alexei Krivoruchko said Friday, as cited by RIA Novosti.

“We will have heavy losses in 2013, and now the company is working with a loss,” Krivoruchko said.

Kalashnikov, part of state-owned industrial corporation Rostec, is preparing cost cuts and plans to increase output and raise sales.

“The work is very hard financially,” Krivoruchko said.

He also said that Kalashnikov has “a very wrong” balance between the number of managers and workers.

“We only have 26% of those who make weapons, the balance is very wrong, the management is definitely overstaffed,” he said.

(34.7287 rubles – U.S. $1)

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