Daily monitor

According to the Government Ukraine exported 7 mln tonnes of grain in the current marketing year (July 2010 – June 2011) as of February 10. It was exported 2.6 mln tonnes of wheat, 2.4 mln tonnes of barley and 1.9 mln tonnes of corn.

Avangard [AVGR LI, N/R], a leading Ukrainian agricultural holding that specializes in the production of eggs in the shell and egg products, has increased its shell egg production volume by 22%, to 4.42 bln pieces from 3.63 bln pieces in 2009. The increase is largely a result of an increase in its poultry stock by 51%, to 24.3 mln head. The Company has continued its strategy of focusing on the development and diversification of its customer base. The share of the Company's sales volume through modern retailers increased to 16% in 2010 from 2% in 2009. Avangard has increased its export volumes by 3 times in 2010, reaching 1 bln eggs and egg-equivalent products.

In 2010 Pivnichnyi GOK [SGOK UK] doubled net profit YoY to USD 322.7 mln.

According to State Statistics Committee of Ukraine, inflation in Ukraine accelerated to 1% in January 2011 compared to 0.8% in December 2010. Food prices rose by 1.3%, alcohol and tobacco by 0.5%, utilities by 1.4% (hot water and heating tariffs rose by 5.7%), and transportation (including rising fuel prices and oil at 5.4%) grew by 2.4%.

In 2010 Centralnyi GOK [CGOK UK] net profit rocketed 4.9 times YoY to USD 162mln. Current liabilities grew 4.8 times YoY to YSD 314 mln, retained earnings shortened to USD 250 mln. Total assets gained 20% reaching USD 905 mln.

Astarta [AST PW, U/R] has reached an arrangement for the acquisition of the Novoivankivskyi sugar plant in the Kharkiv region, with production capacities of 2 thsd tonnes of sugar beets per day. This new asset will become a starting point for the formation of a vertically-integrated regional unit of the Company in the Eastern part of Ukraine.

In 2010 Motor Sich [MSICH UK] has increased net profit by 68.6% YoY to USD 150.9mln or USD 75.6 per share.

Anti dumping duties on import of pipes from Ukraine into Russia imposed in 2006 expired January 31 2011 and were not extended. This enables Ukrainian pipe rolling companies to supply pipes to Russian customers at lower cost, thereby improving the competitiveness of Ukrainian pipes on the Russian market, which is the world’s largest pipe market. Meanwhile, Ukrainian pipe rollers have increased output by 59.7% YoY as of January 2011.

Bogdan Corporation, owner of Bogdan Motors [LUAZ UK], has announced its plans for 2011. This year, the company plans to raise its bottom line above zero, increasing car sales by at least 50%. Export is expected to double this year to 20 thsd units. The company expects car production to gain 51.5%, reaching 45 thsd units, while bus and trolleybus production will increase by 19.7%, reaching 1.1 thsd units.

Zaporizhya Automobile Plant [ZAZA UZ], a member of UkrAVTO Corporation [AVTO UK], has started serial production of a new C-class model – the ZAZ Forza – based on the Chery A-13. The production line capacity is estimated at 8 cars per hour. Total company capacity of the plant for this model is approximately 35 thsd cars a year.