Machinery

The shareholders of the company Zaporizhtransformator (ZATR UZ) have decided to pay out UAH 106.1 mln in dividends for the year 2008. In regards to the rest of the Company’s income (UAH 421.7 mln) for 2008, shareholders decided to distribute it at future shareholders meetings. ZATR intends to pay out the dividends from December 1 2009 to December 31, 2010.

Ukraine and the United Arab Emirates are pursuing common interests in terms of cooperation in the sphere of aviation, according to a statement made by Andrei Goncharuk, the Deputy Director of the Secretariat of Ukrainian President Viktor Yushchenko. He noted that this question would be discussed during the Ukrainian President’s upcoming visit to the United Arab Emirates on November 16-17.

Azovmash, a Ukrainian trading house affiliated with Azovzagalmash [AZGM UZ, SELL] and Mariupol Heavy Machinery [MZVM UZ, Speculative BUY], has signed a contract to deliver charging equipment to the Hungarian company Dunaferr (a member of the Ukrainian ISD group). The equipment is to be delivered to the client by June 2010. The value of this agreement has not yet been disclosed.

The registrar of the securities company ‘Center-Registrar’ has transferred a 76% stake in the holding company Luhanskteplovoz [LTPL UZ] from the account of the ‘Bryansk Engineering Works’ Asset Management Company, which is part of the Transmashholding, to the account of the State Property Fund (SPF). Earlier, the Economic Court of the Luhansk Region had ordered ‘Center-Registrar’ to return the 76% stake in Luganskteplovoz to the State Property Fund.

The UkrAutoprom association has reported on automobiles production for October, which amounted to 4869 cars, implying 30.8 MoM drop. The 10M09 production level, at 63519 units, is down 83.9% YoY. The production values for individual companies are as follows. ZAZ (the UkrAvto holding) produced 3165 units, which is -33% MoM. Its 10M09 output is 44209 units or -82% YoY.

Motor Sich [MSICH UZ, BUY], the largest aviation engine producer in Ukraine, recorded a net income of UAH 264 mln (USD 32 mln) in 3Q09, while its net sales increased by 117.2% YoY to UAH 1,222 mln (USD 148 mln) in that period. The Company’s net margin reached an impressive level of 21.6%. According to a press release issued by the Company, in January-September 2009, MSICH recorded a net income of UAH 516.9 mln (USD 62.7 mln), while net sales increased by 78.3% to UAH 2,492.6 mln (USD 302.2 mln).

The Ukrainian Government has decided to mobilize credit in the amount of USD 400 mln from the Export-Import Bank of China under the state guarantees. These funds will be used to purchase vehicles for the disabled, made at ZAZ, which belongs to the UkrAvto holding.

Turboatom [TATM UZ, U/R] and Tajikistan’s ‘Barki Tojik’, a national power company, have concluded negotiations on the supply of equipment for the Nurek Hydro Plant. The order is worth a total of USD 6.1 mln. The delivery shall take place in the next six to twelve months.

The Committee of Directors of RZD, the Russian railway monopoly, approved a 10% increase to its investment program for 2010. Investment programme of the company accounted for RUB 252 bln (USD 8.6 bln) in 2009. Thus it could account for RUB 277 bln (USD 9.5 bln) in 2010.

Turboatom [TATM UZ, U/R] and Tajikistan’s ‘Barki Tojik’, a national power company, have concluded negotiations on the supply of equipment for the Nurek Hydro Plant. The order is worth a total of USD 6.1 mln. The delivery shall take place in the next six to twelve months.