Sollers reports H1 net income three times higher than in 2011 image

Russian automaker Sollers posted a net income of 2.6 billion roubles ($82.06 million) in the first six months of this year.

The figure is nearly three times higher that the net income from the first half of 2011, the company said on Monday.

In January-June, earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 37 percent to 3.9 billion roubless. The profit increase came despite a 1.8 percent decrease in revenues, which reached 31 billion roubles in the first six months of this year. Car sales of SOLLERS Group represented by UAZ, SsangYong and ISUZU brands for the first six months of 2012 were 46,846 units.

Formerly known as OAO Severstal-Auto, Sollers is a company holding controlling blocks of shares of OAO Ulyanovsk Automobile Works (UAZ), OAO Zavolzhye Motor Works (ZMZ) and OAO ZMA. Sollers is a preferred partner for joint ventures by foreign automakers, with the company having collaborated with Fiat and currently with Isuzu, SsangYong, Ford and Mazda.

On September 6, Mazda established a new joint venture production company with Sollers, called Mazda Sollers Manufacturing Rus. The newly established company will start assembly of the Mazda CX-5 in October, at an annual output of 50,000 vehicles. Later, the plant will also begin manufacturing the all-new Mazda6.

FordSollers is another joint venture in which the Russian carmaker holds a 50 percent stake. Starting this year, the JV has begun making the Ford Explorer and the Transit in the Republic of Tatarstan, while the Focus and Mondeo are built in Sankt Petersburg.