Westa raises battery output 20%, deliveries 18% in 2011

Westa ISIC (WES PW), the CIS’ leading automotive battery manufacturer, increased production 20% yoy to 5.31 mln conventional units and sales 18% yoy to 5.09 mln conventional units in 2011, as implied by December output figures reported yesterday. In December 2011, the company said it made 625 ths conventional batteries (+12% yoy) and sold 600 ths units (+21% yoy).

Westa battery stats, ths convention units
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                     12/2011    yoy    2011    yoy
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Output            625         12%   5,305   20%
Sales              600         21%   5,090   18%
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Source: Company data, Concorde Capital

Alexander Paraschiy: The reported annual sales volume is 2% less than the management’s target, which we relate to postponement in demand due to an unexpectedly warm November and December (usually the peak season for batteries as low temperatures lead to increased battery failures, prompting replacements). Now that cold winter weather has come to the CIS and Westa has accumulated an extra 0.2 mln battery stock over 2011, the company is positioned for a delayed peak season and better 1Q12.