Bogdan Motors posts UAH 224 mln loss in 3Q12

Bogdan Motors (LUAZ UK) reported a net loss of UAH 224 mln in 3Q12 vs. a UAH 100 mln profit  in 3Q11, based on financials by Ukrainian Accounting Standards. Revenue fell 28% yoy to UAH 884 mln in 3Q12. Overall revenue in 9M12 fell 6.5% yoy to UAH 2.68 bln while the net loss surged 82% yoy UAH 255.9 mln for the period.

Roman Dmytrenko: Bogdan’s net loss in 3Q12 is of little surprise after the company suspended auto production in September due to stagnating demand and issued a profit warning earlier this month. Considering Bogdan has over UAH 50 mln per month in financing costs and there are currently no signs Russia (Bogdan’s major market) will remove its recycling fee on car imports from Ukraine, we expect the company to continue expanding its net loss going forward.