Motor Sich to make USD 110 mln from India deal
19 January 2010
Motor Sich (UX: MSICH UK) is due to get USD 110 mln for modernizing the engines of India’s An-32 airplanes. Yegor Samusenko: We think Motor Sich shares have already reacted to this news – the contract was announced way back in June 2009. According to the final contract, the total value is higher than we expected: USD 110 mln vs. our estimation of USD 80 mln. In addition, the project will run three years vs. management’s previous statement that it would go for only two. We estimate this project to comprise 7-8% of Motor Sich’s annual sales in 2010-2012 and be followed in the mid-term by other orders to modernize engines for Soviet-built military airplanes.
