KAMAZ has lowered its sales forecast in Russia

KAMAZ has lowered its sales forecast in Russia


 

Interfax.- Kamaz has lowered its sales forecast in the Russian Federation to a maximum figure of 30,000 units for 2019. The relevant statement has been made by the general director of the company Sergei Kogogin.

“We predict a total sales figure of between 28,500 – 30,000 units for Kamaz in Russia, 5000 to be exported” – said Kogogin during a press conference at Comtrans Exhibition.

Kamaz had plans to sell a total number of 39,000 automobiles according to the previously approved business plan of the company for 2019, 33,000 in the domestic market and 5000 for exports. However, Kogogin has announced a possible revision to the sales prediction in accordance with the mid-year figures in June.

Kamaz forecasts the total volume of the Russian truck market as 58,000 units for this year, which is below last year’s figure, but better than the pessimistic scenario of the company, Kogogin stated.

Kogogin has also noted that the company does not expect extraordinary financial results in 2019, due to the low market, a large investment burden and the bus leasing debts accumulated by the administration of Naberezhnye Chelny.

“We cannot expect fantastic financial results due to three reasons in our opinion: first of all – the market situation, secondly – our investment burden. We are working not only at the expense of profit, but also for borrowed funds. The credit load of the company is quite large” – as told by Kogogin.

“The third factor has occurred in our base city: Naberezhnye Chelny. Unfortunately, we have suffered from the incompetence of our administration in dealing with passenger transport vehicles. We donated our transport company to the city a few years ago, leasing them 190 gas-fuel buses. The current debts of the city due to leasing payments and services exceed 700 million rubles” – as stated by the head of Kamaz.

“The city still can not manage to organise the transport system in a way that every bus brings at least some cash flow. This causes a pretty significant gap in our financial discipline. We are having negotiations with the republic and the city, in order for them to find a solution to this problem. Most likely, we’ll have to seize the buses and sell them on” – Kogogin added.

However, Kogogin has noted that the company expects a positive effect of the seasonal demand increase in the fourth quarter on the financial results.

“In addition, we have the majority of export contracts in the second half of the year. We have signed large contracts in Turkmenistan (approximately 900 vehicles to be sent to the country this year) and Uzbekistan (actively working in the Uzbek market, contracts of over 1000 vehicles). We also rely on Kazakhstan, which is a traditional market for us. Contracts have been signed with Vietnam, which are now ready for shipment” – Kogogin said.

Kamaz had plans to get a net profit of 500 million rubles in 2019 and a revenue of 197 billion rubles, according to previous expectations.