AvtoKrAZ reinvests 2007 net income

At their AGM yesterday, AvtoKrAZ (KRAZ: HOLD) shareholders approved reinvestment of the company’s 2007 net income in the amount of USD 14.7 mln. The AGM also voted to direct 10% of 2008 net income into dividends. AvtoKrAZ’ management board said that they were targeting truck sales of 5,062 units by the end of 2008 (in line with our forecast of 5,100 units) and increasing the share of exports in the company’s sales from 69% in 2007 to 75-80% in 2008. The AGM also approved AvtoKrAZ 2007 financial results: sales of USD 201.5 mln and net income of USD 14.7 mln (net margin of 7.3%). The 2007 financial results are slightly lower than our expectations: sales of USD 211.6 mln and net income of USD 15.6 mln (net margin of 7.4%).