Azovmash Sets New Sales Record In 2006

Azovmash, managing company for Mariupol Heavy Machinery (MZVM: BUY) and Azovzahalmash (AZGM: HOLD) increased sales by 7.2%% yoy to USD 594 mln in 2006, a new record for the company. The company more than doubled its output of oil & gas cisterns to 2611 carriages in 2006, and increased the number of its general cistern carriages by 40% yoy to 5830.  Roughly 80% of the company’s output in 2006 went to Russia, Kazakhstan, Uzbekistan and Belarus. Olha Pankiv: Taking into account intra-group sales, we expect the Azovmash-managed companies MZVM and AZGM to post 14% and 18% increases in sales respectively, in line with our projections.