25 Apr 2019 13:43

Kamaz IFRS net profit tumbles by half to 1.6 bln rubles in 2018

MOSCOW. April 25 (Interfax) - Kamaz , a major Russian truck maker, saw its net profit to IFRS fall by about 55% to 1.588 billion rubles in 2018.

Revenue grew by 19% to "almost" 187 billion rubles, the company reported. A total of 38,382 trucks were sold last year, compared with 38,192 in 2017.

Kamaz said the drop in net profit was expected and was due to the "major investment project" to develop the company's model line and modernize production facilities. Also, "large amounts" were channeled into preparations to launch the new K5 generation of automobiles on the market, for which "a new car-frame plant [has been built], the production of the new P6 family of row engines is being launched, and re-engineering of the company's main production facilities is underway," the company said.

"The company's expenses were also connected to mastering the production of the KAMAZ-6282 electric bus for Mosgortrans. This model is one of the most high-tech products, not only within the company's product range, but also among automobiles of this type worldwide. As a result, KAMAZ has retained a high level of investment: in the reporting year, 15 billion rubles was assimilated (14 billion in 2017)," KAMAZ said.

In 2018, KAMAZ's share in the Russian market of road freighters with fully loaded massed of at least 14 tonnes (according to vehicle registrations) remained at 41%.