My Russian car producer Avtovaz arrived with their... well... one page press release to explain what the first half year has looked like. There is a proper filing also but it is in Russian and with this company I do not care very much what happens from quarter to quarter. The share price have generally been dropping which is to a large extent due to a much weaker RUB.
For the report in "full" please go here and to find out more regarding Avtovaz then please visit analysis of Avtovaz.
What Bo Inge Andersson reported to us shareholders were that the revenue is down by -2.2% which of course is bad and the losses for the half year amounted to -6.6 billion RUB. They say that the automotive market have lost -37% during the running half year and that Avtovaz have also been influenced by this but so much less that they now hold a 19% market share in Russia. One of their targets for 2015 is to reach a 20% market share in Russia so they are getting close!
They still see the effect of the increased quality programs and less cars are coming back. They will also increase the price of some of their models to try to cover the decreased earnings... this is however a very fine line to walk on and I hope that Bo Inge Andersson made the correct decision for that %-age increase since it can lead to lost market share.
Conclusion: Russia and Avtovaz is not performing very well at the moment but if they keep improving their quality and they keep improving their sales then earnings will also arrive at some point. I will of course remain as a shareholder.
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