LUAZ Shows 2008 Negative Results
OREANDA-NEWS. On 24 February 2009 was announced, that Bogdan Automobile Plant < LUAZ UZ BUY >, one of the biggest Ukrainian car producers has ended 2008 with UAH 317.7mn losses. Financial report was published in public information disclosure system of State Commission of Securities and Stock Market. LUAZ increased its market share from 14% to 22% in 2008. The net sales increased by 66.5% to UAH 6,878.67mn. The 9M2008 profit of the Company amounted to UAH 381.6mn, but it ended the 4Q2008 with UAH 699.3mn losses, resulting in the above 2008 losses.
This news is negative for LUAZ but not unexpected. The management of the Company has not hidden the situation and has delivered the information in due course during the series of press conferences and announcements in 4Q2008. Millennium Capital thinks that they impacted the passing of the law on the increased car import duties. The management also predicts car sales to fall in 2009 because of the reduced demand in Ukraine, although the issue of this reduction is still open.
Millennium Capital is an integrated financial services provider. Established in 2000 by a group of professionals with solid background in securities and corporate finance, Millennium Capital is now one of the major investment banking institutions.
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