Motor Sich receives unexpected USD 15 mln order for An-140 engines

Motor Sich (UX: MSICH UK) will produce engines for seven new An-140 ordered by the Russian Ministry of Defense, CEO Vyacheslav Boguslaev said yesterday, according to Interfax. The Russian Ministry of Defense had previously planned to purchase Il-112 aircraft. Vitaly Gorovoy: We expect Motor Sich to get about USD 15 mln from this order (almost 2% of 2011E revenues). While the contract is a pleasant surprise, we do not expect any market reaction due to the relatively small volume of the contract compared to the company’s order book.