OREANDA-NEWS. May 19, 2010. AvtoVAZ released its FY09 RAS financial results, revealing a 50% decline in revenue and a decrease of 45% in net debt. The decline in revenue is primarily due to a drop in consumer demand. Russian car sales fell by 50% in 2009, reported the press-centre of OTKRITIE Financial Corporation.

View: AvtoVAZ's FY09 results were weak. Last year, the company posted a net loss of RUB38bn (USD1.2 bn), avoiding bankruptcy thanks to government support and active cost reduction. The company's net debt declined from RUB64bn (USD2.3 bn) to RUB33bn (USD1 bn). We expect significant improvement in the company's financials in 2010.

Valuation and Action: At the moment, we do not cover the stock.