Bogdan Motors posts 55 times rise in loss in 2012
Public joint-stock company Bogdan Motors, which unties the industrial assets of one of the leading Ukrainian automobile manufacturers – the Bogdan Corporation, tentatively saw UAH 326.4 million in net losses in 2012, while in 2011 its loss stood at UAH 5.9 million,
Corporation Spokesman Serhiy Krasulia told Interfax-Ukraine that the situation is mainly linked to the fall in production of passenger cars of over 40%, along with the absence of a clear state policy for the protection of the domestic market, and the narrowing of sales markets, including due to the introduction of the vehicle recycling tax in Russia.
Krasulia said that due to losses, payments to the social funds and budgets of all levels were cut.
"Last year UAH 220.1 million was sent to the budgets in the form of taxes and duties, while in 2011 a total of UAH 332 million was paid," the spokesman said.
"A complicated situation in the sector retains. Automobile manufacturers had addressed the president, the Ukrainian government and Ukrainian parliament. However, only declarative statements were made," he added.
As reported, Bogdan Corporation cut the production of vehicles by 36.2% in 2012 compared to 2011, to 13,455. The indicator was linked to a fall in passenger car output by 40.5% on 2011, to 12,034.
The industrial assets of Bogdan Corporation include production of cars in Cherkasy with a capacity of 120,000-150,000 cars (Lada, Hyundai and cars under its own brand) and 6,000 buses and trolleybuses per year in Lutsk.
Bogdan Motors Automobile Company closed 2011 with net losses of UAH 5.886 million, which was 43.4 times down on 2010. Net revenues for product sales in 2011 rose by 2.3 times, to UAH 3.953 billion.
Vehicle output grew by 3% in 2011, to 21,093 units.
In 2012 the company planned to break-even, and increase sales revenues by at least 7% on 2011. However, its actual financial and production results were poor. In particular, in January-September 2012, Bogdan Motors saw its net loss rise by 81% year-over-year, to UAH 255.965 million, while its net revenues fell by 6.5%, to UAH 2.681 billion.
