Ratushna A. V., PhD Goncharova Y. S.
Oles Honchar Dnipropetrovsk National University, Ukraine
MEASURES TO INCREASE ENTERPRISE PROFITABILITY IN PIPE SUBINDUSTRY OF METALLURGICAL COMPLEX
In Ukraine in conditions of modern market relationships with plenty of ownership patterns and absence of state control in the sphere of production and distribution of goods, the first place has to be taken by spheres of the real sector of the economy. The subjects in these spheres must be developed and financed as in spheres of the first priority. But now the situation is quite different.
On average industrial enterprises have low profitability of industrial production (to 5 %). They are in the crisis condition and cannot compete with high quality advertising of «western commodities» so as with cheap Chineese commodities. It is obvious that the crisis in the industry are getting deeper. Last time the increase of the Ukrainian industry was fixed in May, 2012.
Let us consider the metallurgical industry in details, precisely the pipe production. From the Ukrstat data, metallurgical enterprises have reduced steel pipe production by 8,2 % (8,22,184 million tons) in 2012 in comparison with 2011. Thus in February, 2013 the European Union has completed anti-dumping proceedings concerning the import of the Ukrainian pipes on the EU territory, that would influence positively on the dynamics of production and export.
One of the largest pipe producers of in Ukraine is JSC Khartsyzsk Pipe Plant (KhPP). In 2012 the plant shortened a net income by 65,4 % from 788,018 to ₴272,891 mln. comparatively with 2011. And in the first quarter of 2013 revenues (net) from sales decreased in 14 times – from ₴ 2,08 mlrd. to ₴ 150 mln. in comparison with an analogical period of the previous year.
Therefore the problem of increasing of enterprises activity in metallurgical industry and rising of their efficiency are very actual because such enterprises need technological innovations, precisely modern forms of the computer-aided manufacturing and information technologies. The maintenance of equipment must be organized on a due level, because this equipment is the main constituent in the program for increasing of efficiency of productive activity.
If the issues of resource-saving, materials consumption, and energy intensity are solved, the inventory management of material resources and sources of supply will be rationalized. Product design is also sufficiently important factor – even insignificant, barely visible defects can substantially influence on the demand of the product.
It is necessary to diversify production and deliveries, create insurance funds of resources, extend and support the personal contacts with suppliers; as the need arises it is possible to buy the shares of enterprises-suppliers.
Employees are the basic source and the important factor to increase enterprise efficiency – leaders, managers, specialists, and workers. Unity of a labour collective is the most important. At the enterprise the permanent improving of working methods must be conducting. These measures envisage the systematic analysis of the condition of workplaces and their attestation, the permanent training of human resources, generalization and use of the positive experience accumulated at other enterprises. Management style is also a very effective factor to increase enterprise efficiency.
Leaders of organizations should draw attention on the necessity of non-admission of losses and control of the growth of profitability; in fact it is the aim of business management. The growth of income exactly determines increase of potential possibilities of the enterprise, augments the measure of its business activity, creates a capital base for self-financing, extended reproduction, solving material and social problems of labour collectives.
Profit allows to funnel capital investments into industrial production (in the same time extending and renewing it), to inculcate innovations, to solve social problems, to finance measures in relation to scientific and technical development of the enterprise.