Omskshina Sales Drop 38 per cent

Omskshina, a subsidiary of Sibur, has released its full year 2004 and first quarter 2005 results showing sharp declines in sales and output. In 2004 tyre output fell 27 per cent year-on-year to 3.8 million units. At least part of this sizeable drop can be attributed to Sibur’s decision to transfer the production passenger car and light truck tyres to its Matador-Omskshina joint venture. Although to all intents and purposes this was a sideways move, the transition of these figures from one balance sheet to another, has obviously had a marked impact on Omskshina’s totals.

At the same time sales declined 38 per cent to $64 million and EBITDA was more than halved to $1.4 million. This year the company recorded operating losses of $0.98 million as opposed to the $1.4 million operating profit it achieved a year ago.

Following Sibur’s restructuring of its tyre business, Omskshina now focuses on making truck tyres, having halved the output of car tyres and abandoned the production of motorcycle tyres.

In terms of first quarter results, the company’s financial results did not get any better. Sales declined 1.9 per cent year-on-year to $17 million. EBITDA was negative at -$1 million compared with +$2 million in the first quarter of 2004. In this period operating losses totalled $1.47 million compared with operating profits of $1.6 million a year ago.