Motor Sich AGM approves dividends of UAH 10 per share

Motor Sich (UX: MSICH UK) shareholders, yesterday at an AGM, approved a dividend payout of UAH 10 per share. This implies a tiny 0.3% dividend yield, or 1.7% of net income earned in 2010 (UAH 1,249 mln). Half of the income, UAH 610 mln, was directed into R&D related to finishing the D-436-148 engine, while UAH 470 mln was allocated to increase working capital needed to satisfy expected 23% growth in output in 2011. Yegor Samusenko: The low dividend payout was widely expected by the market, as the company earlier announced it was planning to direct most of its income toward CapEx and working capital. This year, production of the new D-436-148 engine should more than triple y-o-y, given that An-148 aircraft assembly is ramping up; this should be a major source of revenue growth for the company this year. Please look for our desk note on Motor Sich later today.