Luhanskteplovoz says sales in 2010 will exceed UAH 1 bln

Luhanskteplovoz (UX: LTPL UK) produced 66 diesel locomotive sections and eight electric locomotives in 2010 (38 and two, respectively, in 2009), the company reported yesterday in a press release. Total revenue will exceed UAH 1 bln, according to the company, vs. UAH 430 mln in 2009. Yegor Samusenko: We think Luhanskteplovoz’ revenue will not exceed UAH 1 bln by more than 2-3%, but could grow by another 65% in 2011, should the government and Transmashholding resolve the ownership dispute over the company. After two privatization auctions within the last three years won by Transmashholding, but contested in courts by other bidders and a numerous judicial decisions in favor of both, the government and Transmashholding announced in late December that they reached a compromise and would transfer ownership to Transmashholding. However, the document is not yet signed and we do not exclude the possibility of the dispute being drawn out for another half of year or more. We stick with our position that Transmashholding will be recognized as the owner of Luhanskteplovoz.