Russia's Avtovaz returns to profit

6th October 2010, Comments 0 comments

Russia's largest carmaker Avtovaz, 25-percent owned by French giant Renault, said Wednesday it returned to profit in the first half of this year after a disastrous 2009.

The company, which had to undergo a painful restructuring to survive a massive slump in the Russian auto market, reported a six months to June net profit of 3.1 billion rubles (74.8 million euros, 103 million dollars).

In first half 2009, the company suffered a net loss of 19.6 billion rubles, with the loss for the full year put at 49.2 billion rubles.

It said the recovery in earnings reflected a turnaround in the market and government support through the hard times.

Earlier this month, Avtovaz said it sold more than 50,000 of its iconic Lada models in September, up 78.1 percent from a year earlier and 11 percent higher than in August.

© 2010 AFP

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