Azovmash 7M06 Sales Up 15.1%.

Azovmash, the managing company for Mariupol Heavy Machinery (MZVM: BUY) and Azovzahalmash (AZGM: BUY), increased sales by 15.1% yoy in January-July to $356m. Production was also $356m, up 10.1% yoy. Exports accounted for 78.2% of sales with major deliveries going to Russia, Kazakhstan, Iran, India and Uzbekistan. The company launched production of two new models of platforms and two of boxcars. Production of rail carriages and platforms was up 10.6% yoy in monetary terms but in unit terms (4,722) was down 2% yoy. Production volumes of cisterns grew by 40.1% to 2,852 units, including output of oil cisterns which grew by 2.4 times and gas cisterns by 20%. Olha Pankiv: As railway carriages account for most of the growth in January-July, MZVM, which specializes in this segment, most likely increased revenues in 7M06 more than AZGM.