AvtoVAZ lost control

The net loss of AvtoVAZ IFRS in 2008 amounted to 24.7 billion rubles. against profits in the 3.7 billion rubles. in 2007, according to a report published on the eve. The company's revenue grew by 2.4% to $ 192.1 billion rubles. EBITDA was negative - 3.3 billion rubles. Market experts forecast a net loss of AvtoVAZ, but almost half as much, but a negative EBITDA is not waiting for anybody. Cost has increased by more than 10% - to 174.7 billion rubles. The last time the unprofitable for AvtoVAZ under IFRS was in 2005. In the first half of 2009, the company will net loss under IFRS at 10 billion rubles., Said Thursday during a conference call on the vice-president for finance company Oleg Lobanov. The forecast for the entire current year, AvtoVAZ does not, but the management expects to bring the plant to break-even level by the end of the year. Total amount of arrears of AvtoVAZ at the end of last year amounted to 120.8 billion rubles. Out of which 109.5 billion rubles. - Short-term debt (42.2 billion rubles. - Debts to suppliers, 47.4 billion rubles. - Bank loans and loans). Cash in the accounts of the company amounted to 13.75 billion rubles. It is the duty of AvtoVAZ in the current period is 53 billion rubles., Deputy vice president of finance Andrew Boginsky. According to him, 90% of its debt - short-term. In this case, 30% of debt is owed to funding from the state corporation "Russian Technologies" at 25 billion rubles., He said. Thanks to the interest-free loan "Rostekhnologia totaling 25 billion rubles. From the Government, AvtoVAZ, the settlements with creditors and suppliers, said earlier Aleshin. Without the support of the state enterprise can not pay on current accounts and work on a continual basis, the company said. In the five months of this year, sales of AvtoVAZ fell by 45% to 151 thousand vehicles while reducing the total Russian market by 47% to 645 thousand cars. In the IFRS financial statements the company opened a two-fold drop in sales revenue in January-May compared with the same period last year - up 32.3 billion rubles. Stocks of vehicles from March to July declined by 10 thousand cars and now make up about 80 thousand, he added Lobanov. Analysts believe that without a new portion of the state help automakers with their problems are no longer cope. When projected by volume passenger car market in 2009 to 1.2 million cars and share it AvtoVAZ in 30%, or about 360 thousand vehicles, we can assume that the company's revenue for the end of this year will be about 85 billion rub., since the average declared value of Lada cars at the level of 225-240 thousand rubles, estimates analyst SC Metropol Michael Park. "It is a huge drop - almost double compared with 2008," - he commented. "In this situation everything depends on state support, without this the company facing bankruptcy," - he believes. Although the government has helped so much concern - raising the duties on foreign cars, running the preferential car loan, highlighting the huge loan. Realized at the auto giant's anti-crisis program and has not yet produced tangible results (including reductions in administrative costs, reducing costs, sales promotion, etc.). In order to save costs on production in July-August, the plant will operate in an eight-hour shift five days a week from September to March, part-time work week continues, and wages for all employees will be cut almost in half. AvtoVAZ, experts say, more than anyone else in the industry is the need to retain maximum state of the enterprise and its load, which also affects the cost reduction program. Market analysts believe that further development of the company to begin production of new model range, the more that talk about this company is not the first year. According to reports, in 2008, AvtoVAZ has invested 16 billion rubles. the development, updating equipment and technology, a 65% increase compared with 2007. "Basically, this is due to the acquisition of licenses Renault to manufacture, assembly and sale of licensed cars in the amount of 9.2 billion rubles. (220 million euros)," - explained in the company. In April, Aleshin said that Gazprombank, VTB and Sberbank are ready to finance the investment program of AvtoVAZ volume of 80 billion rubles. That will run until 2013. Recall Renault-Nissan CEO Carlos Ghosn has earlier stated intention to produce in Russia together with AvtoVAZ budget car. President of Sberbank, German Gref, in turn, expressed the opinion that the current product line Tolyatti plant prospects there, and suggested two possible options for development: the transfer of enterprise management concern Renault (owns a blocking stake in AvtoVAZ "), or an alliance with Magna and the Opel (buy a package of the latter Contracting State Bank).