Oct. 7 (Bloomberg) -- OAO AvtoVAZ, the Russian automaker part-owned by France’s Renault SA, will end the year with a profit after a loss last year as the economy starts to recover and the government offers incentives to encourage new car sales.
AvtoVAZ may have profit of “slightly more” than 1 billion rubles ($34 million), board Chairman Sergei Chemezov told reporters in Nicosia today, without specifying the reporting standards.
The automaker had a loss in the first half of 612 million rubles under Russian accounting standards and first-half net income of 3.03 billion rubles under international accounting standards after a loss a year earlier, according to its website.
Russia, which plans to sell new AvtoVAZ shares in 2011 and 2012, is still seeking to swap shares in AvtoVAZ for a stake in Renault SA or its affiliate Nissan Motor Co., Chemezov said. Nissan may show interest in a swap, while Renault probably won’t agree, he said.
AvtoVAZ said last month it plans to sell about 568,000 Lada cars this year as the government’s cash-for-clunkers program boosts automobile sales.
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