Avtovaz losses soar 4.5-fold to 5.1 bln rubles in 9M
MOSCOW. Oct 9 (Interfax) - Avtovaz had net losses of 5.1 billion rubles to Russian Accounting Standards (RAS) in January-September to 5.1 billion rubles, the car maker said in a statement.
This was 4.5 times higher than the 1.117 billion rubles loss the company posted for the same period of last year.
"The main reason for the loss was the revaluation of our forex loans at the end-September exchange rate. In the current instability, we have to continue to cut costs, make use of the opportunities afforded by the recycling program and successfully launch our new products in Q4: the Lada Kalina Cross, Lada Largus Cross and Lada 4x4 Urban," the company's president, Bo Andersson, was quoted as saying.
Avtovaz sold 307,100 cars in January-September, 17% less than in the same period of last year. "Despite a drop in volumes in Q3, Avtovaz showed a positive result for operating profit of 320 million to RAS for the first time since the start of the year," Avtovaz said. "This is a huge achievement for our team and confirmation that our cost cutting program is working," Andersson said.
