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UPDATE 1-Russia's KamAZ to stay afloat despite loss

Published 10/29/2009, 01:37 PM
Updated 10/29/2009, 01:39 PM

* Truckmaker can continue as a going concern with state help

* Posts H1 loss after 4.2 bln rbl profit last year

* Still in talks with lenders about debt restructuring (Adds detail)

MOSCOW, Oct 29 (Reuters) - KamAZ, Russia's largest truck maker, said it was confident it could continue as a going concern despite a near 2 billion rouble ($68.56 million) first half loss, adding that it could rely on state support.

The company, in which German carmaker Daimler holds a 10 percent stake, said on Thursday it could not predict how the economic climate would change over the coming months, and continued to negotiate with lenders on debt restructuring.

But it added that state support was at hand should the firm continued to suffer from a slump in demand.

"The Russian government's response to the current economic environment includes direct support to certain key industries, including the automotive industry ... We believe that the Group will be able to ... meet its obligations as they become due and continue as a going concern," it said in its half year accounts.

The Russian government is currently attempting to rescue carmaker AvtoVAZ, maker of the Lada, which is on the brink of bankruptcy.

KamAZ posted a net loss of 1.84 billion roubles ($63.08 million) for the six months to end June, versus a net profit of 4.2 billion roubles in the same period of 2008.

(Reporting by John Bowker and Dmitry Sergeyev; Editing by David Cowell)

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