OREANDA-NEWS. Tire producer Amtel-Vredestein has its net loss increased up 52% according to IAS 1H 2007 report, says company's message. Net loss of Amtel formed 33.5 mln USD. Company's sales rose by 27% versus January-June 2006, reaching 439 mln USD. Still, the growth of sales was mostly backed by tires for passenger vehicles - sales of passenger vehicle tires of first half 2007 rose by 24.5% versus similar period of past year, forming 258.2 mln USD. EBITDA formed 21 mln USD, exceeding past year's results by 16%.

According to Veles Capital experts, the total debt of Amtel-Vredestein as of June 30, 2007 amounts to 820.4 mln USD, 21% above value of December 31, 2006. The growth of debt load we relate to implementation of Voronezh-2 project, which is currently behind schedule and being constantly retimed, as a new announced date for launch of the plant is 1Q 2008. Amtel intends to facilitate the debt load by getting syndicate credits of Alfa-Bank and its partner, Nomura.

Once more the company plans to get 1 bln USD sales total in 2007, entering a loss free level, which is possible in the opinion of the experts, if the positive state of the market will continue to second half-year and renewed management of company will work effectively. The primary cause of negative result is a high level of "other expenses" item, not to mention the high growth rate of operating expenses, which takes company's financials to a negative zone.