Luhanskteplovoz Sales Up 10% yoy

Yesterday Luhanskteplovoz (LTPL: HOLD), the CIS’s largest locomotive producer, announced that its sales grew by 10% yoy to about USD 85.1 mln in 2006. Production in 2006 fell by 2.7%. Olha Pankiv: The company failed to meet its sales plan for 2006, especially in terms of locomotives (12 against 20 planned), thus posting sales 10% below our projections for 2006. LTPL is anxiously waiting for the State Property Fund to go forward with its privatization as it is in desperate need of working capital. It is likely LTPL will be privatized this year, as a ruling by the Supreme Court late last year overturned a ruling by the Kyiv Appeals Court that had been blocking the company’s privatization. We see Russia’s Transmash Holding as the likely winner of the 76% stake.