OREANDA-NEWS. November 1, 2010. Motor Sich, a major producer of aircraft engines in the CIS region, posted a net income of UAH 284.3mn in 3Q2010, the company disclosed in its quarterly report Oct 29. The company increased its net revenues by 22.8% qoq to UAH 1,245.5mn in 3Q2010, while the yoy growth constituted a mere 1.9%. Furthermore, the quarterly EBITDA amounted to UAH 432.6mn in 3Q2010, which represents a 42.5% qoq gain, or 0.4% yoy. The net income totaled UAH 284.3mn, up 30.1% qoq, or 8.1% yoy. Company 3Q2010 margins were at 34.7% for EBITDA, up 4.8ppt qoq, and at 22.8% for net income, up 1.3ppt qoq.

Millennium Capital considers the news as POSITIVE for MSICH. The company traditionally delivered healthy performance in the third and fourth quarters. Millennium Capital notes that the current financial results are not that impressive compared to the 3Q2009 figures, when the company operated in much more challenging environment. However, the supporting argument is that the company managed to save the positive qoq tendency and improved its margins (EBITDA margin, up 4.8ppt qoq, and net margin, up 1.3ppt qoq). The positive results were reached in spite of the ever growing competition forAN-148 aircraft contracts as the company may lose the exclusive right to supply its D-436-148 engines for the Russian AN-148 aircrafts in favor of Sukhoy. As recently reported, the Antonov (Ukraine) and Russia's United Aircraft Corporation agreed to create a joint venture.