AvtoKrAZ Production Up, Exports Expanding

In 7M07, AvtoKrAZ (KRAZ: HOLD) produced 2,551 vehicles (+56.4% yoy), in line with our yearend forecast of 4,200. For the month of July, the company produced 400 vehicles (+200% yoy), of which 64.3% were dump trucks, 22.7% were all-purpose automobiles and 13% were tractors. Exports accounted for 70% of July sales. AvtoKrAZ increased deliveries to the Russian market by 61% yoy to 190 units in July while exports to Kazakhstan accounted for 25 automobiles, a threefold yoy increase.