UkrAvto Sales Fall 32% yoy in 2007. At their AGM today

Ukravto (AVTO: SELL) shareholders announced that 2007 sales were down 32% yoy to USD 444 mln, while net income came to USD 213 mln (21x higher than in 2006). The shareholders decided to reinvest 2007 earnings. Inna Perepelytsya: Reported 2007 sales were 4.5% lower than we expected (USD 465 mln). UkrAvto management didn’t present its complete projections for 2008, but forecasted profit before taxation of USD 89.1 mln. We maintain our forecasts and reiterate our recommendation.