Yaroslavl Reports Operating Results
JSC Yaroslavsky Tire Works in Yaroslavl’, one of Russia’s largest tyre manufacturers and a part of Sibur holding, has released full-year 2004 and first quarter 2005 financials. The results show that, once again, although the company’s output dropped its profitability has actually increased. 2004 sales fell 30 per cent year-on-year to $95 million, while operating profit dropped 17 per cent to $2.5 million.
During the same period EBITDA declined 4.6 per cent to $5.9 million, while net loss widened from $0.7 million to $6 million. The negative financial performance may be attributed primarily to the restructuring of Sibur’s tyre business and secondly, to Yaroslavsky’s transition to tolling arrangements in 2004.
First-quarter results show a marked improvement in profitability on the back of continued decline in sales. Sales fell 24 per cent year-on-year to $24 million. However, EBITDA grew an impressive 50 per cent to $2 million, operating profit grew 2.7 times to $2.35 million, and net profit rose by a factor of 4.3 to $0.8 million. As a result, CentreInvest analysts put their recommendation and fair price for Yaroslavsky under review.