Machinery

Azovmash, the leading Ukrainian machine-building holding, increased its YoY revenues almost 48% in Jan.-May 2008 with USD 474 mln in sales. During the same period, 4,171 freight carriages and platforms (+8% YoY) were produced. Among the innovative products produced by the company was an automated fuel feeder that is slated for supply to one of the Russian airports. Azovmash also produces heavy metallurgical equipment steadily ordered by metallurgical plants in Russia, Ukraine, Algeria and India. In 2007, Azovmash increased its production of carriages 16.1% to 9827 units. In 2008, the company expects to produce 11,780 carriages.

Avtokraz Holding Company [KRAZ, N/R], a large producer of big rig trucks, held its annual shareholders’ meeting May 27. Since the company announced it 2007 annual financial results, we have been anticipating new information on a future IPO.

Kryukivka Carriage Works [KVBZ, U/R] increased its production in April 6.9% MoM from 608 to 652 carriages, four of which were passenger cars.

At Stakhaniv Carriage Works’ [SVGZ, U/R] AGM May 19, shareholder’s approved the decision to increase the statutory fund via emission of 37.7 million ordinary shares in documentary form at USD 0.21 par value.

Motor Sich’s [MSICH, Buy] new plans involve capital expenditures of some USD 80 mln aimed at creating new helicopter engine assembly platforms in Russia.

Stakhaniv Carriage Works [SVGZ, U/R] has increased its production in Jan. – April, 2008 14% YoY to 2,356 carriage units. In April, SVGZ released 569 freight carriages, about 80% of which were gondola carriages, the most demanded type of carriage in the CIS. From Jan. to April, 2008, SVGZ increased its output of gondola carriages 50% YoY. As of the beginning of May 2008, SVGZ has employed almost 5.8 thsd workers (compared to 4.7 thsd workers in May 2007).

TAS Group recently announced its plans to possibly unite the carriage-building companies it owns to create one carriage-building holding with subsequent IPO plans.

Motor Sich [MSICH BUY], the sole Ukrainian manufacturer of engines for helicopters and jet airplanes, has reported 1Q08 net sales of USD 87 mln, which is 51.2% more than its performance in the same period last year.

Donetskgirmash [DGRM UZ, N/R], a large Ukrainian producer of mining machinery, has doubled its net loss in 2007 to USD 7.2 mln.

Kryukiv carriage building plant [KVBZ] has agreed to supply 16 passenger carriages for Ukrzaliznytsia, the Ukrainian railway company, by 2009.