Daily monitor

The Open Joint Stock Company ‘Azovmash’ has increased its sales in the first ten months of 2008 up to UAH 5.3 bln. This represents a significant increase of 60% over the same period last year. This information was disclosed by the company’s press service.

Ukraine’s Ministry of Agriculture has announced price levels for grain purchases under collateral from agricultural companies. The price for wheat of the second class will be USD 145.5 per mt, wheat of third class will be USD 128.4 per mt, wheat of sixth class – USD 87.2 per mt, and first class barley – USD 115.6 per mt.

Heidelbergcement Ukraine, one of the country’s largest cement producers, stated its intention to invest UAH 363.152 mln (USD 72 mln) into the modernization of its production facilities in 2009-2010. Respectively, this is UAH 127.557 mln in 209 and UAH 235.595 mln in 2010.

The Open Joint Stock Company ‘Ukrtelecom’ [UTEL UZ, U/R] will launch its IPTV digital cable TV service in December 2008, according to an announcement made by Ihor Syrotenko, the company’s Deputy Chairman of the Board.

A survey by the Polish research group PMR (www.pmrpublications.com) indicates that Ukraine`s pharmaceutical market will witness a growth by up to 25% per year to reach a value of USD 5.7 bln in 2010. The survey was published on mid. October.

For the first nine months of 2008, the Zaporizhia-Based Open Joint Stock Company ‘Motor Sich’ [MSICH UZ, U/R] experienced a drop in its net profit to UAH 21.57 mln – this is a decrease of 7.7 times YoY.

Luhanskteplovoz [LTPL UZ, U/R], one of the largest locomotive producers in Ukraine and the CIS, increased production 2.4 times YoY in 10M2008 to USD 172 mln in real terms. These statistics were quoted by Interfax Ukraine.

Enakievo ISW group, which includes OJSC Enakievo Iron & Steel Works [ENMZ UZ, U/R], smelted 180 thsd mt of steel in October, just 12% down MoM, according to Interfax-Ukraine. Last month’s output is only 27% below the 9M08 average of 247 thsd mt, and 35% lower than the peak 278 thsd mt output in March 2008.

Interfax-Ukraine reported steel production numbers for October. According to our calculations, the total crude steel output of Ukrainian steelmakers amounted to 1.86 mln mt last month. This is 25% below the September reading of 2.48 mln mt, 47% down from the 9M08 average of 3.51 mln mt, and 52% below the peak value of 3.92 mln mt in May 2008.

Azovstal [AZST UZ, U/R] decreased crude steel output by just 14% MoM in October to 412 thsd mt, according to Interfax-Ukraine. This is 21% below the 9M08 average of 519 thsd mt, and 25% below the peak output of 551 thsd mt in June 2008.