Daily monitor

According to Vice Prime Minister Viktor Slauta, a special tax regime for agricultural companies and the fixed agricultural tax will be retained.

Yesterday, Ukrproduct [UKR LN, U/R], one of the largest Ukrainian dairy producers, posted its financial results for 1H10. According to the Company’s data, net income decreased by 34% YoY to GBP 0.42 mln (1H09: GBP 0.63 mln). Revenue decreased by 5% YoY to GBP 20.65 mln (1H09: GBP 21.79 mln), profit from operations fell by 45% YoY to GBP 0.62 mln versus GBP 1.11 mln in 1H09. EBITDA fell by 31% YoY to GBP 1.15 mln (1H09: GBP 1.67 mln). The EBITDA margin fell by 2 p.p. to 5.5% in 1H10.

During the period from January-August 2010, Bogdan Motors [LUAZ UZ] increased production of cars by 3% YoY to 11 328 units. The MoM production increase in August accounted for 26%. The company downgraded its production predictions from 22 000 to 20 000 cars.

Yesterday Prykarpattyaoblenergo’s recently privatized 25% stake was passed to two off-shore companies, Ukranews reported.

During January-August 2010, Bogdan Corporation, owner of Bogdan Motors [LUAZ UZ], increased output of buses and trolleybuses 2.4 times YoY, to 608 units. Of these, 90 units were produced in August. Production growth is determined by the increase in export volume, says the company press release.

The consumer price index (CPI) increased in August by 1.2% m/m, bringing the 8M10 yoy level to 8.3%. The producer price index (PPI) added 0.9% m/m, thus slowing down in 8M10 to 23.3%.

A concept and program for the development of the Ukrainian helicopter industry is to be adopted by the end of 2010 in accordance with the government assignment. The Ukrainian Aircraft Technology Research Institute and Motorsich [MSICH UZ] will act as the major developers. The Ukrainian program is to be based on a 3-5 ton medium class helicopter with a capacity of 9-12 passengers.

International reserves of the National Bank of Ukraine (NBU) grew by 5.9% to USD 32.7 bln in August 2010, providing an increase of 8M10 by 23.3%.

According to Metal Courier, Alchevsk ISW [ALMK UK] plans to boost pig iron output in September by 88% or 178 thousand tons to 380 thousand tons.

During 8M2010, AvtoKrAZ Holding [KRAZ UZ] has increased production of trucks 6 times to 580 units, 74 of which were produced in August. The company has shipped 628 trucks to its clients, 14% of which were sold in Ukraine, 36% in CIS, and 50% in other countries. The company continues to develop new models: a cab-over-engine truck for communal services and a military KrAZ-6322 НМРV-А (Heavy Multi Purpose Vehicle, Аrmored). The company has acquired a European ISO 9001:2008 quality standard certificate, which will boost its sales in the Middle East, African Countries, Central Asia, CIS, Russia, and CEE.