AvtoVAZ has announced financial results for the I half-half of 2015
OREANDA-NEWS. August 04, 2015. AvtoVAZ has announced the results of the first half of 2015. The company's revenue was 89.2 billion rubles, which is less by 2.2% than in 2014. According to Russian accounting standards, the company received an operating loss of 6.6 billion Rubles, caused by the general decline of the Russian car market by 37%, increase in purchase prices for components and the negative dynamics of the ruble, informed the press service of AvtoVAZ. In the reporting period AVTOVAZ repaid promissory notes, which is not related to operating activities that together with the operating loss resulted in an increase of net assets for the six months in the amount of 0.7 billion rubles (0.8% of revenue).
In the first half of 2015 AvtoVAZ produced 280,000 cars, which is more by 1.6% than in the first six months of 2014. Moreover, the dynamics of the reduction in sales of Lada was more positive compared to the Russian automotive market as a whole. According to the results of sales in 2015 the market share of Lada is 19%, which is higher by 2.5% than in the same period of 2014. The number of defects in manufacturing has declined by about half compared with the same period of the last year. Statistics of complaints in the first three months of vehicle ownership (3MIS) decreased by 50%.
"The current economic situation in the country had a direct negative impact for us. Lada sales fell by 27%, increased significantly the cost of components - we still suffer losses for these reasons - said the president of AvtoVAZ, Bo Inge Andersson. - In this situation, our main objectives are the optimization of production costs and restructuring the supply base. "
In the current economic and market situation in Russia and for the further improve of the financial performance AvtoVAZ activates the execution of the plan of anti-crisis measures that by the end of 2015 will provide savings of 20 billion Rubles. It is cost reduction, further negotiations and optimizing of supplier base. As noted, the reduction of costs will not affect the budget of social activities that was 2,2 billion Rubles for 2015.
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