Bogdan Motors’ output increases 14.5% qoq in 1Q

Bogdan Motors (UX: LUAZ UK) reported its 1Q10 output yesterday: it made 2,759 vehicles, up 14.5% qoq. Bogdan noted that in March its production increased month-on-month as it manufactured 17.8% mom more cars (1,301 units), and 76.9% mom more buses and trolleybuses (69 units). Yegor Samusenko: Bogdan Motors quietly returned to producing over 1 ths vehicles per month in Feb-Mar, which is still close to 10% its capacity utilization, but better than previous quarters. Domestic demand remains weak, especially in the low-price segment where Bogdan competes. We expect Bogdan to increase its output in 2010 by 15-20%, and note that recovery in banking lending should be the main trigger for demand recovery.