Luhanskteplovoz Releases 1H07 Results

Luhanskteplovoz (LTPL: BUY) released its 1H07 financial results, posting a net loss of USD 5.8 mln (a 2.6x yoy increase) and sales of USD 15.5 mln (down 35.8% yoy). Inna Perepelytsya: Since new majority shareholder Bryansk Heavy Machinery only took over control of Luhanskteplovoz in late March, the first half results do not reflect the now revitalized order book. We don’t put much stock in the company’s 6M07 results and expect the company’s yearend results to meet our forecasts of net income of USD 8.2 mln and sales of USD 164.7 mln.