Truck manufacturer AvtoKrAZ (KRAZ) reported preliminary FY09 net income of UAH 30.9mn (US$ 4.0mn), down from UAH 66.1mn in 2008, according to a company press release. AvtoKrAZ earlier reported a 5x y/y decrease in truck sales and an 11x y/y drop in truck production in 2009.

Alexander Paraschiy: We estimate the company’s revenues shrank fourfold y/y in 2009, and the positive bottom line, which would be unusual given the sharp contraction in revenues, signals AvtoKrAZ took adequate cost cutting measures last year. We also attribute the positive earnings to cheap input (steel) costs, which the company enjoyed in 1H09. We expect AvtoKrAZ will boost net revenues by up to 5x y/y and increase its bottom line threefold in 2010.