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. Last Updated: 07/27/2016

Power Machines 2004 Profits Up Fourfold

Siloviye Mashiny, or Power Machines, said profit soared by more than four times in 2004 on contracts to upgrade and build new generators in Asia.

Net income jumped to $15.06 million from $3.24 million in 2003, based on preliminary earnings, Power Machines said Monday in a statement. Revenue almost doubled to $638.9 million, from $352.3 million, the company said.

Power Machines plans to boost sales to $1 billion a year by 2008 and increase orders to $3 billion by then, while increasing its share of contracts in Russia and the CIS from the current 15 percent of total sales volume, deputy general director Pavel Skitovich said.

Siemens, the world's second-largest maker of turbines, in July filed an official request with the Federal Anti-Monopoly Service to raise its stake in Power Machines from about 4.5 percent to 71 percent to exploit growth from Eastern Europe as U.S. demand for turbines slows.

The service has yet to decide on whether to approve the takeover amid issues of national security and defense.

"Siloviye does indeed have issues to resolve regarding the defense industry," general director Yevgeny Yakovlev said at the news conference. "We shouldn't make a conclusion, though, that Russia doesn't want to let any foreigners" invest in the country.