Net loss of KAMAZ has exceeded 800 million rubles by the first half of 2018

Net loss of KAMAZ has exceeded 800 million rubles by the first half of 2018

RusAutoNewsCom – Kamaz has published its accounts for the first half of 2018: the total revenue has risen by 4.5 billion rubles in comparison with the same period of the previous year, to 62.13 billion rubles.

The company has made a net loss of 803 million rubles, despite the growth in total revenue. According to the financial director of Kamaz Andrei Maksimov, the seasonal fluctuation in demand and the requirements of the Euro-5 class ecological conditions for trucks were the main factors behind the temporary shrinkage in the indicators.

“Compliance with Euro-5 norms has pushed the production costs up, due to the installation of expensive neutralisation systems for exhaust gases, in order to achieve the Euro-5 level” – said Maksimov. “However, Kamaz has not increased the sales prices, which resulted in shrinkage in margins” – he added.

The increase in the prices of graphitised electrodes at the end of 2017 has been shown as another reason behind the rise in losses by Andrei Maksimov. According to Maksimov, the rise in electrode prices was caused by the tightening of environmental rules in China, where the product comes from, leading to an increase in the cost of casting in Russia. In return, this rise in costs has not been reflected to the prices of Kamaz products.

Nevertheless, due to the measures taken to increase the efficiency of business, reduction in costs and the introduction of a new model range of automobiles to the market, the company plans to implement its annual business plan and manufacture 43,100 trucks, achieving a year-on-year growth of 13%. Such a performance is expected to generate a profit of 1.6 billion rubles at the end of 2018.