Motor Sich Increases Net Revenues By 0.7%, Net Income Falls.

The company’s (MSICH: BUY) net revenues came to USD 213.8 mln, slightly above our projection of USD 211 mln (0.7% growth), while gross profit declined by 7% due to hryvnya appreciation in 2005 (exports account for 83.8% of the company’s sales). MSiCH’s EBITDA grew by 23% to USD 22.5 mln due to a decrease in SG&A, while its net income decreased by 8% to USD 9.7 mln (net margin of 4.5%). Motor Sich plans to spend USD 9 mln of its net income on CapEx and to increase working capital along with an additional USD 0.45 mln which will be paid out as dividends (USD 0.25 per share, dividend yield of 0.3%). The company’s management plans a 12% increase in sales for 2006, based on its existing order portfolio. WATCH for Olha Pankiv’s notebook on the company later today.