OREANDA-NEWS. November 18, 2011. GAZ Group, the largest Russian manufacturer of commercial vehicles, has summed up the results for the first half of 2011 according to the International Financial Reporting Standards. The company finished the first half year with net profit raising the revenue by 39%, increased sales volumes in all segments and retained leadership in the Russian commercial vehicles market, reported the press-centre of GAZ Group.

The revenue of GAZ Group in January – June 2011 was RUR 52.1 billion which is 39% higher y.o.y. The highest increase of revenue – around 60% – was in the light commercial vehicles segment. The revenue from GAZ vehicles sales in 6 months of 2011 was RUR 23.8 billion.

Growth of sales volumes and higher business efficiency allowed the company to reach positive EBITDA margin of 9.6% and to get net profit of RUR 1.5 billion. EBITDA in 1H 2011 increased by 51% and reached RUR 5 billion.

In 2011 GAZ Group reached the highest labour productivity in the history of the company. In 1H 2011 the average monthly revenue per employee was RUR 153 thousand, which is around 40% higher y.o.y. The revenue per employee has almost doubled since 2006.

In 2011 GAZ Group renewed the model range in all segments and radically improved the product quality. It allowed the company to increase sales of all types of products. In the first half of 2011 the revenue from sales of light commercial and medium-duty vehicles increased by 60%, URAL trucks – by 12%, buses – by 19%, revenue from sales of engines and automotive components increased by 39%.

The company has retained leadership in the commercial vehicles market – 50% in the light commercial vehicles segment, around 70% in the bus segment, around 45% in the heavy-duty vehicles segment. The company has also strengthened its positions in the Russian powertrain and automotive components market.

Bo Andersson, President and CEO of GAZ Group: “The results for the first half of 2011 confirm the leadership of our vehicles in the market, as well as the leadership of our company in terms of financial results. GAZ Group has demonstrated the best results in the industry among commercial vehicle manufacturers. It has been achieved through the efforts of the whole team who makes the best vehicles for our customers. We do not rest on our laurels. We set new tasks to renew the model range and improve the product quality. Our main priority remains unchanged – our customers’ requirements which are the key driving factor of our development.”

The credit portfolio of GAZ Group in 1H 2011 decreased by 2.3% to RUR 42.3 billion, including the loan to set up production of new medium YaMZ-530 diesel engines. In November 2011 GAZ Group signed a cooperation agreement with VTB bank providing for a RUR 38 billion loan to GAZ Group. The funds will be used to refinance the syndicated loan of GAZ Group and to implement the company’s investment projects. The restructuring of the debt will allow GAZ Group to remove a number of financial restrictions within the banks syndicate regarding capital investments and to reduce the interest expenses.