Machinery

Luganskteplovoz [LTPL UZ, U/R], one of the largest locomotives producers in Ukraine and the CIS, announced that the company decided to cut back its working days from five to three as of November 1. The main reason cited for this decision is the significant decrease in production output that is now occurring for the plant. According to company officials, LTPL has problems with access to loans, which are required for the company’s supporting operations.

Azovmash ended the period July-September with a net profit of UAH 0.601 million, according to a press release issued by the company. The company's net income dropped 20.36% or UAH 4.88 mln to reach UAH 19.087 mln in 3Q2008, compared to 2Q2008. In comparison to 3Q2007, however, Azovmash’s net income grew 46.13% or UAH 6.025 mln to UAH 19.087 mln in 2Q2008.

Azovmash – a Ukrainian freight car manufacturer and a leader in the machine-building industry –has obtained a USD 15 mln loan from the Raiffeisen Bank Aval [BAVL UZ, U/R], according to a press release issued by the bank.

The largest Ukrainian turbine producer, Turboatom [TATM UZ, HOLD], increased its Net Revenue in 3Q2008 to USD 19.6 mln. This amount is 7.13% more than the Net Revenue for the same period a year ago. Net Income for this period increased to USD 1.2 mln, which is +425% QoQ; however, it also translates to -12.6% YoY.

The holding company AvtoKrAZ [KRAZ UZ, N/R] plans to reduce approximately 10% of its current staff. However, despite this new development, the company’s press service has also announced that the situation at the plant remains stable, and that AvtoKrAZ plans to maintain its production levels for this year at results that are not lower than the company achieved in 2007.

The Cabinet of Ministers of Ukraine transferred the Ministry of Industrial Policy of Ukraine authority for the management of state corporate rights for a number of enterprises. This includes 99.57% of the Odessa Port Plant, 75.22% of Turboatom, 50% of Azovmash, in addition to stakes in other companies.

Sumy Frunze [SMASH UZ, N/R], one of largest European producers of equipment for the oil and gas and the chemical industries, has delivered compressor equipment and power units to the company Surgutneftegaz (Russia), as part of a deal valued at USD 50 mln.

AZOVMASH intends to deliver furnace-charging equipment that is 4.2 m in diameter to the Dunaferr Metallurgical Plant (Budapest, Hungary) in 2009.

On October 10, Turboatom [TATM UZ, HOLD] won a tender for the modernization of the K-200-130 turbines at the Luhansk TPP (Thermal Power Plant) and the Kurahovskaya TPP.

Sumy Frunze [SMASH UZ, N/R], intends to deliver compressor equipment to the Russian gas monopolist Gazprom. An order was placed in the amount of USD 70 mln, for completion by April 2009.