MZVM Sales Up 13.5% In 2006

Mariupol Heavy Machine Building (MZVM: BUY), part the Azovmash holding, reported net revenues of USD 501.8 mln, in 2006, an increase of 13.5% yoy. At the same time, net income decreased significantly to USD 0.09 mln. The PFTS announced last week that on April 1 it would be including MZVM in the the PFTS basket. Olha Pankiv: MZVM’s financial results are in line with our projections. The company continues to use tax optimization schemes, and we do not expect transparency to come before 2008. On the positive side, MZVM has filled its order book for most of 2007.