AvtoKrAZ posts net loss of UAH 58 mln in 1H11

AvtoKrAZ (UX: KRAZ UK) reported a net loss of UAH 58.4 mln in 1H11 versus net profit of UAH 9.8 mln in 1H10, according to Interfax on Friday. The company’s net revenue increased by 10% y-o-y up to UAH 334.7 mln, while gross profit decreased by 31% y-o-y to UAH 51.1 mln. The company exported 76% of its sales in 1H11. We note AvtoKrAZ’ financials have a history of manipulation via transfer pricing.