Azovmash 2Q Carriage Production Down 5.3% yoy.

However, in q-o-q terms, Azovmash-managed companies – Mariupol Heavy Machinery (MZVM: BUY) and Azovzahalmash (AZGM: BUY) increased production of carriages by 9.5% in 2Q06, to 2110. Olha Pankiv: To keep up with its production plan of 9240 carriages for 2006 (a 10.5% increase), Azovmash would have to increase production by 29% in 2H06. We believe the yoy decrease in production occurred due to a change in the company’s product mix, as 1H06 sales were better than half of the group’s annual plan. 1H06 sales were up 13.6% yoy to $316.8m.