Shares of AvtoVAZ went up after the company returned to profit
By Andrew, 10 May, 2011. 0 Comments
2011 Renault Clio
Shares of AvtoVAZ went up for a second day after it revealed that it has returned to profitability last year due primarily to a car scrapping program supported by the Russian government. The stock of AvtoVAZ, the largest automaker in the country, increased by up to 3.5% and it traded 1.8% higher at 26.8 rubles by 11:51 a.m. in Moscow.
The carmaker had reported a net income of 3.6 billion rubles ($129.7 million) in 2010 after posting a loss of 49.2 billion rubles in 2009. Revenue increased by over 57% to 137.6 billion rubles.
AvtoVAZ, which produces the Lada model and is 25%-owned by France's Renault SA, benefited the most from an ongoing government scheme that gives incentives to drivers who trade in their cars that are at least 10 years old for new models built in Russia. AvtoVAZ's Russia sales climbed by 48% to 517,147 units in 2010. Its sales are also higher by 69% to 121,251 units through the first quarter.
Gallery: 2011 Renault Clio
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