Motor Sich raises revenue 1.4x yoy, profits 2.5x yoy in 1Q12

Motor Sich (MSICH UK), the CIS’ largest aircraft engine manufacturer, reported strong financials for 1Q12 last night: the top line improved 43% yoy to USD 191 mln, lifting EBITDA by 67% yoy to USD 79 mln (EBITDA margin rose 6 pp yoy to 41%). The company benefited from tax privileges (nearly zero income tax, vs. USD 13 mln in 1Q11) to post a 2.5x increase in its 1Q12 bottom line to a hefty USD 71 mln.

Alexander Paraschiy: Motor Sich remains the sole bright spot among UX index components – the only one of the class to report improvements from the top to bottom of its financial statements. With its strong order book, the company’s short-term prospects look bright as well. We think the stock market should reward the company for its sound interim financials today.