Bohdan Automobile Plant’s Net Income Up 3.7x yoy

According to Interfax, Bohdan Automobile Plant (LUAZ: N/R) increased its net income 3.7x yoy to USD 72.3 mln. The company increased production 33.6% yoy to 53,919 cars in 2007. In order to support growth, the plant’s workforce increased 46% over 2007 to 2,584 people. Inna Perepelytsya: As we expected, Bohdan Automobile increased its net income, thanks in part to tax exemptions on imported spare parts that were in effect until January 1, 2008. It remains to be seen whether the company will maintain its profitability in 2008: prolongation of the exemptions has not yet been decided by the Verkhovna Rada and Ukraine’s push to enter the WTO in early 2008 decreases the chances of them being passed.