Luhanskteplovoz: New Locomotive OKed for Russian Sales
3 March 2008
Russian state rail transport authorities have certified that Luhanskteplovoz’s (LTPL: U/R) new freight diesel locomotive, the 2TE116U, meets all relevant safety requirements for use in Russia, said a Luhanskteplovoz press release. Viktor Bikadorov, CEO of Luhanskteplovoz, was quoted as saying that the company expects to export 110 2TE116U sections to Russia in 2008. In a February 27 interview, Bikadorov said that he predicts the company’s 2008 sales to reach USD 337 mln. Inna Perepelytsya: The news is in line with our expectations.Our 2008 sales forecast for Luhanskteplovoz is USD 321 mln (+172% yoy), about USD 165 mln of which could come from exporting 2TE116U sections to Russia. In 2007, Russian exports accounted for about 43% of Luhanskteplovoz’s revenues (USD 118 mln). In our view, this news demonstrates Transmashholding’s continued commitment to increase the value of the company and meet its privatization obligation.
