Amtel raises revenue, achieves 64 % profit rise

By Liz White, ERJ staff

Moscow-Amtel Holdings Holland raised its revenue by 19 percent to $383 million (Euro 320 million) in 2003, with gross profit 64 percent up, year-on-year, to $46 million.  Net profit after taxes in 2003 was $11.5 million, and company assets at 31 Dec 2003 were $485 million, with shareholder equity of $119 million, said a statement from the major Russian tyre maker.

The Moscow-based group attributes the increased sales and profit largely to modernisation of its production facilities and the launch of a new line of branded tyres, made on "state-of-the-art manufacturing equipment."

"One of the most significant financial results achieved by Amtel over the last year has been the growth in profitability of operations. Gross profit from sales has increased to 12.84 percent in 2003, up from 9.3 percent in 2002," said Alex Gurion, general director of Amtel Holdings.  "The new equipment and technology have made it possible to produce high quality tyres with less weight, which means a significant reduction in cost of manufacturing," he added.

In May 2003 Amtel completed a new production line to make 2.2 million passenger car tyres annually at its Kirov plant.

A project to install new equipment with the same capacity-2.2 million tyres a year-was completed in March 2004 at the Amtel Chernozemye - I plant in Voronezh.  And the group is also now finalising installation of a second new line at Kirov for 2.2 million branded passenger car tyres, which will be brought into production in November 2004.

Construction of a further facility at Voronezh-Amtel Chernozemye - II-began in May 2004 and is expected to start up in August 2005.  This plant will make up to 3 million high-speed tyres to replace imported tyres for passenger cars and SUVs.

In 2005, Amtel's installed capacity for passenger car tyres will reach 17 million units per year, the firm claims.