7 Jun 2010 13:11

Sollers increased IFRS losses by 430% to 5 bln in 2009

MOSCOW. June 7 (Interfax) - Sollers posted 5 billion rubles in net losses in 2009 under IFRS, the carmaker said in a statement.

"[It] was due to rising loan interest expenses and exchange rate losses," the statement says.

Company sales revenues contracted 44% last year to 34.7 billion rubles, which Sollers attributed to a plunge in sales due to "the negative state of the Russian automobile market".

EBITDA was 264 million rubles "from implementation of an integrated program to cut spending".

Sollers' First Deputy General Director Nikolai Sobolev said, according to the statement, that based on a recovery in sales at the beginning of the year and the company's increased market share for SUVs and light commercial vehicles allow it to figure on the automotive group being able to increase sales revenues 50% this year and get operating profits back into the black.

The company's IFRS net losses in 2008 came to $38 million, sales revenue - $2.48 billion and EBITDA - $220 million at an average annual rate of 24.86 rubles/$1. Based on these figures net loess went up in 2009 by 430% (from 945 million rubles, EBITDA went down 95.2% from 5.469 billion rubles). Sobolev also forecast the company's sale revenue for 2009 at no less than 36 billion rubles.

Sollers, formerly Severstal-Auto, manages the Ulyanovsk Automotive Plant, Zavolzhsky Motor Plant , Sollers-Naberezhniye Chelny, Sollers-Alabuga and Sollers-Far East. The company also has an engine manufacturing joint venture with Fiat Powertrain Technologies. Sollers produces UAZ, Fiat, Isuzu and SsangYong models in Russia.