OREANDA-NEWS. June 08, 2010. During a meeting of Sollers CFO Nikolay Sobolev and analysts, the company released its FY09 IFRS financials. Revenue saw a 56% YoY decline to USD 1bn, while EBITDA plummeted 96% to only USD8m only, reported the press-centre of OTKRITIE Financial Corporation.

Due to a sharp drop in car sales, the company posted a net loss of - USD 159m, which reflected a fourfold increase. The key takeaways from the company’s reporting are as follows:

In 2010, Sollers plans to double its sales of the Fiat Ducato brand YoY to 16,000 units, while increasing Ssang Yong brand sales by 32% YoY to 12,000 units.

Sollers intends to ramp up its share of the LCV/MPV market from 27% to 35% before year’s end.

Management plans to raise EBITDA in 2010 and to decrease its debt/EBITDA ratio to 6-6.5x in 2011.

View: We believe that Sollers’ plans are feasible thanks to its participation in the ‘cash-for-clunkers’ program, under which it intends to sell c.10,000 cars by year’s end. The recovery of the domestic car market could help the company to raise EBITDA and to decrease its debt/EBITDA ratio.

Valuation and Action: Sollers trades at a 55% discount on 2010 EV/EBITDA to KAMAZ. We view the company’s plans as a short-term positive for stock.