OREANDA-NEWS. Group "AvtoVAZ" at the end of 2014 increased revenues under IFRS 7.7% to 190.7 billion Rubles. Operating loss before non-recurring costs decreased by 2.2 billion Rubles and it was 8.0 billion Rubles. Other non-operating and financial expenses in the amount of 17 billion Rubles consist of the following indicators: the costs from foreign exchange differences on foreign currency liabilities - 8.8 billion Rubles; interest payable - 4.3 billion rubles; Impairment of non-financial assets - 2.5 billion Rubles; restructuring costs and payments to employees for dismissal - 1.5 billion Rubles.

"Non-operating factors affected mainly on the financial results. It is important that the resulting operating loss reflects the difficult economic conditions, in which Russia is now. However, I am pleased that we have improved core operating performance, which allowed us to improve the operating result compared with the last year. During the year we have doubled the production of cars per employee, decided many important issues and improved significantly quality indicators”, - said the president of company, Bo Andersson. – “Successful implementation of the cost reduction program has helped to reduce the operating loss in 2014. The program of the improvement brings results for the enterprise. We cannot predict how the market will be, but AvtoVAZ plans to enter the operating profit for the year 2015 by being a customer-oriented company with increased production rates on the eve of the launch this year of models Lada Vesta and Lada XRAY.

The company still strives to achieve a number of medium-term ambitious, the stated earlier objectives. The company plan, firstly, to increase the share in the Russian market to 20%, and secondly, to reach the level of the operating profit of 6%, and thirdly, to provide a positive free cash flow without the need for additional funding. Bo Andersson confirmed that the results of 2014 has not been amended in an ambitious plan for development of the enterprise.