AvtoKrAZ June Output Down 16.7% yoy.

However, June’s production of 250 trucks was up 25% over May. In January-June AvtoKrAZ decreased output by 19% yoy to 1,352 units. The company increased production of trucks with EURO-2 compliant engines to 96, up by 6.9 times over May. Production of assembly parts grew by 50% yoy in June to $0.4m. Domestic sales increased by 3.6 times yoy in June to 97 trucks. Olha Pankiv: The yoy decrease in sales is due to AvtoKrAZ’s failure to get a new contract in Iraq. We expect that to be compensated in 2H06 with increased deliveries to Sudan and Egypt. The company’s 2006 sales are likely to be less than our initial projection of 4.9 ths trucks.