Druzhkivka Machinery decreases net revenue 13% yoy in 2009

Druzhkivka Machinery (UX: DRMZ UK) decreased net revenue 12.7% yoy to UAH 620.4 mln in 2009, the company reported in a filing yesterday, according to Interfax. The plant posted a net loss of UAH 78.5 mln last year, vs. net income of UAH 0.5 mln in 2008. Yegor Samusenko: The company’s sales in 4Q09 exceeded revenues earned in 9M09, which led to the company’s annual results exceeding our expectations by 50%. We think the company will grow its sales in 2010 by another 50%, given that it started receiving stable order flow from state coal mines in 3Q09 and the continuing growth in coal extraction at private mines. Meanwhile, Druzhkivka’s profitability remained weak in 2009, which we attribute to transfer pricing practices.