Machinery

Turboatom [TATM UZ, HOLD] – the largest power turbine producer in Ukraine, completed delivery of equipment including 5 energy turbines to HPP Koteshvar in India.

Sumy Frunze Machine Building’s [SMASH UZ, N/R] order book increased by 50% YtD to USD 720 mln, according to information from a company press release. Given this size of the order book, deliveries in 2009 will equal USD 120 mln.

Motor Sich [MSICH UZ, BUY], a large aviation engine producer in Ukraine, signed a new contract with Egypt to supply six An-74.

Motor Sich [MSICH UZ, BUY], a large aviation engine producer in Ukraine, will supply model D-436-148 engines for 50 An-148s which will be produced in Iran.

According to a press release issued by the Azovmash holding, which includes freight railway producers Azovhalmash [AZGM UZ, U/R] and Mariupol Heavy Machinery Plant [MZVM UZ, U/R], the company ended 2Q09 with a net profit of UAH 0.653 mln, which is 7.9% YoY growth.

Bogdan Automobile Plant [LUAZ UZ, U/R] recorded a net loss of UAH 207.9 mln (USD 26 mln.) in 1H09, compared with net income of UAH 144 mln (USD 29mln) in 1H08. LUAZ’s net sales decreased by 8 times YoY to UAH 460.15 mln in the first half of 2009.

According to financial information published by Turboatom [TATM UZ, HOLD] – the largest power turbine producer in Ukraine, the company’s net income jumped by 77.5% YoY to UAH 51.04 mln in 1H09.

Ukrzaliznitsya (UZ) intends to order additional 4 electric trains from Luhanskteplovoz [LTPL UZ, N/R]. UZ has already purchased four locomotives since the beginning of the current year. According to the head of UZ’s locomotive department, Mr Vladimir Zaytsev, the main barrier to increasing the order volume from LTPL is the price for a new locomotive, which has risen by 50% to UAH 37 mln (USD 4.85 mln).

Based on a statement from the head of the Industry and Infrastructure Department of the Luhansk Oblast Administration, Mr.Valariy Bezlepkin, Luhanskteplovoz [LTPL UZ, N/R] will dismiss about 70% of its staff down to 2000 employees in the next few months. The main reason for the cost cutting program is a lack of orders from clients.

Kharkiv-based OJSC Turboatom [TATM UZ, HOLD] – the largest turbine manufacturer in Ukraine – has reported a preliminary net profit of UAH 55.4 mln (USD 7.3 mln) which is 93% more than 1H08. According to an Interfax agency report, net sales grew by an expected 54% YoY in 1H09 to UAH 357.4 mln (USD 46.9 mln.). About 86% of TATM’s production was exported in 1H09.