29 May 2004 22:29
Russian lorry plant ups net profit by 17.5 per cent in 2003
Kazan, 28 May: A shareholder meeting of the KamAZ open joint-stock company, held in Naberezhnyye Chelny on 28 May,
summed up the results of the company's activities in 2003. Tatarstan Prime Minister Rustam Minnikhanov attended the
meeting.
The KamAZ group of companies made a net profit of R9.5m [over 0.3m dollars] in 2003, a 17.5-per-cent increase on
2002. The group's sales grew by over 25 per cent to R29bn [around 1bn dollars] last year. KamAZ sold over 24,000
lorries, 39,500 cars, about 30,000 diesel engines and spare parts worth R4.6bn [150m dollars] (a 35-per-cent rise on
2002). It also manufactured new products worth R3bn [100m dollars] (a 68-per-cent rise). The group changed the
principles for selling its products last year. It adopted a new form of selling on a leasing basis. Taking into account
special requirements for special-purpose vehicles and equipment, it carried out work with such clients as the Russian
Defence Ministry, Gazprom, leading road construction and transportation enterprises and major constituent parts of
Russia.
KamAZ general director Sergey Kogogin said that the current year was complicated for his company. National standards
set for cars produced are expected to be changed. Prices for fuel and electricity and metal products have gone up and
foreign car producers are continuing to expand their presence. The general director said that a priority task for KamAZ
was to increase its share on the Russian lorry market from 36 per cent to 38.5 per cent. The company also intends to
reach a profitability level of at least 6.1 per cent and make a net profit of at least R104.5m [over 3m dollars].
Speaking at the meeting, Rustam Minnikhanov said that KamAZ was a promising factor in the growth of innovation in the
republic's economy.
The shareholders voted on all the issues on the meeting's agenda, but decisions will be officially made public
[only] in 25 days' time. The shareholders were asked to vote for not paying dividends for 2003. The total profit is
expected to be channelled into KamAZ's special reserve fund as was the case last year. A list of 25 candidates was
compiled to be elected to the 17-member board of directors. Major shareholders of KamAZ are the Russian government
(34.01 per cent), Vneshtorgbank (19.41 per cent), the Tatarstan government (11.6 per cent), the European Bank for
Reconstruction and Development (6.79 per cent), KamAZ International management company (3.82 per cent) and the Russian
Sberbank savings bank (2.82 per cent).
[Tatar-Inform news agency] |
RUSSIA IN FACTS
