Industry Faces Challenges but KrAZ Group Is in Good Standing

13 July, 2016

Results of KrAZ group for the first half year of 2016 are very encouraging and optimistic. Despite disadvantages in industry, market, economy and the country compared to gale KrAZ group companies report increase in sales as may be seen in operation results for the first and second quarters of this year.  

Kremenchug Automobile Plant, head company of the group, increased sales by 1,6 times in the second quarter as compared to the first quarter of the year.  However, this growth was not sufficient to reach the result achieved for the same period of the previous year. 33 percent decline from the first half year of 2015 can be considered as approximate figure due to change in contractual obligations caused by increase in export: the company delivers the whole batch of vehicles built within the period stipulated in the contract and then receives payment.  KrAZ hopes to reach and even exceed, if it can, the result achieved in the previous year.

“AutoKrAZ” sold UAH 671m worth of products for January-June period, 92 percent of this sum is payment for vehicles. 

Other companies of the group also report growth as compared to the first quarter: Tokmak Press-Forging Plant announced 6 percent increase in sales, Poltava Brake Components Plant – 8 percent increase in sales, “Kamenets-Podoslkavtoagregat” – 59 percent increase in sales, “Avtoradiator” (Mariupol) – 80 percent increase in sales, Kherson Plant of Propeller Shafts increased sales by 2,4 times.

Regarding the results achieved for the first half year sales of Tokmak Press-Forging Plant (TPFP) went up 34,3 from the same period of the previous year. The company sold over UAH 40,3m worth of products for January-June period, sales in the domestic  market account for  over  95 percent.

PJSC “Kamenets-Podoslkavtoagregat” (KPAA) managed to increase its sales in the second quarter but in the first half year the company saw its sales to decline by almost 2 times to UAH 5,2 m from the previous year. However, the company saw its best sales in June: growth by 4 times from May. TPFP is determined to maintain sales until the end of the year to reach the targets.

Poltava Brake Components Plant maintained its sales at the previous years’ level in the first half year of 2016 and sold UAH 54m worth of products including UAH 44m worth of brake components and UAH 7,5m worth of consumer goods. Export sales account for 68,5 percent of all the sales: almost doubled supplies to Belarus, there were supplies to Uzbekistan and Kyrgyzstan.

PAAZ also had its best sales in June, what is interesting is that the company achieved the best sales figure as compared to the same period of the previous year and previous month. Sales went up 6,5 percent from June of 2015, and 43 percent form May.  

In the fist half of year Kherson Plant of Propeller Shafts sold 10,54m worth of products., up 19,3 percent from the previous year figure.  Most products representing 82,5 percent are intended for domestic market.  

It should be mentioned that in the fist half year supplies made by the group companies to «AutoKrAZ” account for 59 percent (Mariupol “Avtoradiator”), 31 percent (Kherson Plant of Propeller Shafts), 84 percent (“Kamenets-Podoslkavtoagregat”), 59 percent (TPFP), 9,2  percent (Poltava Brake Components Plant).
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