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Dniprovahonmash Production Falls 25% yoy in 9M06

Dniprovahonmash Production Falls 25% yoy in 9M06

30 October 2008

According to reports in the mass media on Friday, Dniprovahonmash’s (DNVM) volume of production also decreased 35% yoy to UAH 332 mln. The company also reportedly posted a net income of USD 2.6 mln (net margin of 4%). Olha Pankiv: The decrease in Dniprovahonmash’s production may be linked to uncertainty in the company’s corporate governance between the TAS and Privat groups. TAS recently gained a controlling stake, after buying a 10% share from the Midland Group in August. We believe the market ensures potential growth in DNVM sales mainly from orders by Ukrzaliznytsya and Russian Railways, which both recently announced massive renovation programs of their fleets.

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