Druzhkivka Machinery Lifts 2006 Net Income 7 Times yoy

Druzhkivka Machinery (DRMZ: BUY) increased its net income to USD 2.3 mln in 2006 from USD 1.69 mln in 2005, according to Ukrainian News. The company also improved sales to USD 85.5 mln (up 5.9 mln from 2005). Eugene Cherviachenko: Although net income in 2006 is close to our forecast of USD 3.2 mln, sales are way below forecasted (USD 118 mln). Apparently, the company lost tenders for mining equipment deliveries to India, Iran, Vietnam and Russia, which resulted in lower than expected sales last year. We hope to get more data at the company’s AGM scheduled for May 25.