Daily monitor

Bogdan Corporation, the owner of Bogdan Motors [LUAZ UK], has disclosed information regarding a recent acquisition of a 10% share of Cherkassy Bus from Bogdan Motors. The purchaser turned out to be Ukrainian Automobile Holding, another member of the Bogdan Corporation.

Bogdan Motors [LUAZ UK] has sold 10.5% share in Cherkassy Bus, shortening its share from 99% to 88.5%. Neither the acquisition price nor acquirer has been revealed by Bogdan Motors.

The total earnings of the telecommunication sector in Ukraine increased by 2.6% in December to UAH 4.1 bln. This represented a cumulative growth of 2.5% y-o-y for the full 2010 year. Mobile segment earnings in 2010 rose by 1.3% y-o-y, while the fixed line segment slid 6.9% y-o-y. The mobile segment share declined to 60.8% in 2010 versus 61.5% in 2009, while the fixed line segment share dropped to 17.3% in 2010 from 19% in 2009. The computer segment showed the biggest gain in 2010, inching up by 26% y-o-y, and its share increased to 8.9% in 2010 from 7.3% in 2009.

In 2010, Luganskteplovoz [LTPL UK] increased its production more than 2.3 times YoY to over USD 125 mln. The plant produced a total of 74 locomotive sections, which represents a 2.1 YoY increase.

From February 1 exports of agricultural products from Ukraine will be carried out under condition of registration of contracts in the state Agrarian Exchange or its designated exchanges, which is a prerequisite for customs clearance. An exception is made only for exports of agricultural products as a humanitarian help or for international and technical assistance.

Industrial output in Ukraine grew by 12.5% in December 2010, compared to December 2009. In 2010, industrial production increased by 11% YoY.

In 2010, the Zaporizhya automobile plant [ZAZA UZ], the main asset of UkrAVTO Corporation [AVTO UK], produced 45.5 thsd cars, which is a 1.5% YoY decline and a massive 83% fall in comparison to 2008.

In 2010, Ukrainian pipe rolling companies increased production of ferrous metal pipes by 10.7% YoY to 1.75mln tons. Most pipe producers showed significant output growth rates; however, overall dynamics were affected by a production slowdown by Khartsyzsk Pipe [HRTR UK] in 1H2010.

In 2010 AvtoKrAZ Holding [KRAZ UK] has increased truck production 3.6 times YoY to 1 thsd units. Sales doubled to 1063 units. Domestic sales accounted for 16% of vehicles, 50% were exported to CIS countries, 34% - other countries. This year the company plans to produce 3.3 thsd trucks.

Ukrnafta’s [UNAF UK, U/R] production of oil and gas condensate in 2010 declined by 12.1% YoY to 2.5 mt, while its natural gas segment posted a 17.3% YoY drop to 2.4 mln cbm.