Private joint-stock company AvtoKrAZ (Kremenchuk, Poltava region), the sole Ukrainian manufacturer of heavy trucks, plans to boost production and sales of trucks to 1,200 units in 2018, while in 2017 the enterprise made 629 trucks and sold 677 units, according to a financial report of the enterprise for 2017. According to the document, it is planned to increase production and sales of vehicles thanks to retaining positions in the domestic market and increasing export orders.
The main sales market will remain internal, where it is planned to supply about 800 trucks, or 66% in the sales volume. The share of supplies for export is expected to increase to 34% compared with 19% in 2017. In supplies to the Ukrainian market for the current year, it is expected that 41% will be orders for state-owned structures, and supplies for municipal companies are planned to quadruple.
According to the report, in 2018, AvtoKrAZ intends to continue work on the adaptation of power units to the Euro 6 emission standard and the creation of promising truck models. At the same time, the main attention will be paid to expanding the lines of special equipment for the Armed Forces and compact trucks for public utilities companies. The main rivals of AvtoKrAZ are the trucks of manufacturers from the CIS (MAZ, KamAZ, UralAZ), which are in the same strategic group with KrAZ in terms of the price/quality ratio.
In addition, among the rivals in the markets of Asia and Africa are trucks of Chinese, South Korean and Indian manufacturers.
At the same time, according to the document, such Western manufacturers as Daimler AG (Mercedes, Freightliner, Mitsubishi, Western Star), Scania, Iveco, MAN, DAF, as well as American, Japanese and South Korean companies, which main markets were Western Europe, Japan and North America, in recent years, due to a sharp drop in demand in these markets, are forced to look for new markets in Southeast Asia, Eastern Europe, CIS countries and Africa, that is, where the positions of AvtoKrAZ are traditionally strong.
According to the company, in 2017, out of the 629 trucks produced, 43% of the trucks were dropside trucks, 35% – automobile chassis, 19% – tractor trucks, and 3% – dump trucks.
The main consumers of equipment in Ukraine in 2017 were power structures, oil and gas and municipal sectors. Abroad, the main importing countries are Georgia and Kazakhstan, Turkmenistan, African countries (Nigeria, Egypt, Mali and Ethiopia) and the Middle East (the UAE, Iran). At the same time, the volume of supplies to Ukrainian customers was increased by 50% compared with 2016.
At the same time, the company recalled that until 2013 the main sales market was Russia, where more than 50% of sales were made, and in 2013-2015, this share was reduced to 10%.
Revenue from sales of trucks in 2017 totaled UAH 945 million (90% of total revenue). Spare parts for UAH 64 million were sold (6%), casting products for UAH 23 million (2%) and other products and services for UAH 16 million. AvtoKrAZ adjusted net loss seen in 2017: it was UAH 89.73 million (according to the preliminary data it was UAH 235.6 million), which is 52.4% less than in 2016. Net revenue totaled UAH 1.048 billion (15% down).
Private joint-stock company AvtoKrAZ (Kremenchuk, Poltava region), the sole Ukrainian manufacturer of heavy trucks, saw UAH 1.048 billion of net revenue in 2017 (UAH 1.232 billion in 2016).
According to a Tuesday press release of the company, AvtoKrAZ CEO Roman Cherniak presented the figure in his report at a general meeting of shareholders held on April 3.
According to the press release, the share of dropside trucks of total vehicles made by the company was 41%, the share of chassis for various special-purpose equipment was 38%, tractor trucks – 17%, dump trucks – 3% and short log trucks – 1%.
Some 81% of trucks were delivered to the Ukrainian market, and supplies to the civil sector of the domestic market tripled. 5% of trucks were exported to non-CIS countries and 14% to the CIS.
Cherniak said that AvtoKrAZ last year passed a first audit of the quality management system under the certificate received in November 2016 confirming compliance with ISO/TS 16949:2009.
Capital investment in 2017 totaled UAH 1.8 million. The funds were sent to buy equipment, tools, modernization and reconstruction of fixed assets. Some UAH 29 million was spent on minor repair and overhaul and some UAH 7.5 million on maintenance of a clinic, dormitories, catering rooms, the palace of culture and other facilities.
According to the report of the CFO, growth of expenses and not enough volumes of production, permanent growth of currency exchange rates, accrued interest for the use of loans contributed to the fact that AvtoKrAZ saw large losses in 2017.