Daily monitor

The Ukrainian Automobile Association [AVTO UZ, N/R], otherwise known as the UkrAVTO Corporation, has postponed the creation of a joint venture with the U.S. company General Motors Corp. (trademark GM). The project was to be established on the basis of the Fabryka samochodow osobowych (FSO), a car factory in Warsaw. This information was relayed by FSO Press Secretary Christina Danilchik.

UkrAVTO [AVTO UZ, N/R] – Ukraine`s biggest car-maker and dealer – has announced that it is cutting production at the Zaporizhzhya car factory (ZAZ) by 40% in response to the current financial crisis. ZAZ output dropped by roughly 7.9% YoY to 22,740 cars in September, down from 24,690 in September 2007.

Ukraine’s State Railway Transport Administration ‘Ukraliznytsya’ plans to acquire 200 passenger railcars from the Open Joint Stock Company Kryukiv Railcar [KVBZ UZ, BUY] in 2009. This announcement was made by Ukraine's Minister of Transportation and Communication Yosif Vinsky during Tuesday’s working visit to the Kremenchug, Poltava Region, where the company’s plant is based.

The Bogdan Automobile Plant [LUAZ UZ, BUY] has reported on its results for the first nine months of 2008, in accordance with Ukrainian accounting standards. In the period January-September 2008, the plant produced 70,427 cars, which represents an increase in output by 92% (or 33,752 cars), compared with the same period in 2007.

In July-September, the Kyivmedpreparat company, increased its net revenue by 23.41% or UAH 37.394 mln to UAH 197.105 mln, compared July-September 2007. Kyivmedpreparat, as Ukraine’s largest producer of antibiotics, ended 3Q2008 with a net profit of UAH 19.719 mln.

Yesterday the Interbank currency market experienced a sharp appreciation of hryvnya from 6.5/7.0 in the beginning of the day to 6.0/6.4 at the session closure, as the National Bank of Ukraine (NBU) intervened with a USD sellout at the 5.95 UAH per USD level.

For the period January-September 2008, the Closed Joint Stock Company “Borshchagivskiy Chemical Pharmaceutical Plant” (BCPP) increased its net income by 64.2% YoY to UAH 17.3 mln. Net Sales increased by 26.7% YoY, up to UAH 212 mln. According to results from 3Q2008 along, BCPP posted a net income of UAH 3.13 mln. In comparison, the same period in 2007 saw the company post a 0.04 net loss. The company’s long-term liabilities are UAH 28.9 mln.

Stakhaniv Railcar Works [SVGZ UZ, BUY], one of the largest wagon producers in Ukraine and part of the AvtoKrAZ holding, has announced that it will double its statutory capital to UAH 79.236 mln, according to Interfax-Ukraine. This decision was made at a general meeting of the company's shareholders, which took place on October 6. At that time, they approved the results concerning the additionally-issued shares and corresponding amendments to the statute. In total, the number of shares placed equals 37,731,585 shares, each of which has a face value of UAH 1.05.

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.