Motor Sich Plans to Increase Sales More than Twofold by 2011

Motor Sich (MSICH: BUY) CFO Viktor Lunin told Interfax that the company intends to raise sales 2.2 times by 2011, on the back of growing demand for aviation equipment and modernization in the CIS. Lunin pointed to the launch of five new projects in recent years that are starting to bring in returns, including the production of electrical equipment, which he expects to grow from USD 9 mln sales this year to USD 58 mln by 2011. Lunin said he expects market conditions will allow the company to preserve its margins in the long-term; Motor Sich posted 9M07 EBITDA margin of 24.3% and net margin of 14.7%. Inna Perepelytsya: Motor Sich’s sales guidance mirrors our forecasts for a double in overall sales from USD 245 mln in 2006 to USD 526 mln by 2011 (see our Nov. 2 report).