Daily monitor

Azovstal [AZST UZ, BUY] reported its May production data. Pig iron, 459.7 thsd mt (+8.3% YoY); crude steel, 544.8 thsd mt (+6.3%); rolled products, 492.6 thsd mt (+7.8%). For 5M08, production of crude steel is up 2.3% to 2.62 mln mt, and output of rolled products is up 5.9% to 2.372 mln mt..

Avdiivka Coke [AVDK UZ, Strong BUY] has increased output by 39.5% to 1.982 mln mt in 5M08, according to UGMK.INFO. In May 2008, the plant reportedly produced 426 thsd mt of coke.

Azovmash, the leading Ukrainian machine-building holding, increased its YoY revenues almost 48% in Jan.-May 2008 with USD 474 mln in sales. During the same period, 4,171 freight carriages and platforms (+8% YoY) were produced. Among the innovative products produced by the company was an automated fuel feeder that is slated for supply to one of the Russian airports. Azovmash also produces heavy metallurgical equipment steadily ordered by metallurgical plants in Russia, Ukraine, Algeria and India. In 2007, Azovmash increased its production of carriages 16.1% to 9827 units. In 2008, the company expects to produce 11,780 carriages.

Growth in personal income accelerated to a record +46.2% YoY in April compared to +44.8% YoY in March. The average monthly income per capita in April reached USD 281 (UAH 1, 417). The share of salaries in aggregate income totalled 43%, social payments – 41% and income from property and other sources – 16%. All the income components grew firmly YoY, with social payments up 48% YoY, salaries up 44%, income on property rose to more than 60% YoY and dividend income and other sources of income grew 44% YoY in April 2008. Real disposable income increased 17.7% YoY in April 2008.

Khlibprom [HLPR UZ, N/R], a holding company for 14 bread plants and three bakeries, has posted a net revenue of USD 22.02 mln (+54.5% YoY) and a net income of USD 0.25 mln (+ 9.1% YoY) for 1Q08.

During 5M08, Alchevsk ISW [ALMK UZ, BUY] increased rolled products output 41.3% to 1.978 mln mt. Steel output rose 37.4% to 2.151 mln. Pig iron output increased 54.6% to 1.899 mln mt, whereas sinter production actually decreased by 1% to 2.086 mln mt.

Astarta [AST PW, U/R], Ukrainian sugar refinery, gets a 3 month bridge loan from ABN AMRO. The agreement was signed on May 29, 2008. According to the Warsaw Burse officials, “Tsukrovyk Poltavshyny” ltd and “Astarta – Kyiv” ltd are stated as collaterals for the loan. The company is planning to invest the money into buying new agriculture equipment and improving of working capital.

Khartsyzsk Tube Works [HRTR UZ, Sell] increased its output in May 2008 25MoM to 42 thsd metric tons of pipes. The mill also produced 109 thsd metric tons of pipes in 5M2008, reducing its production 63.5% YoY. Khartsyzsk Tube Works is the largest Ukrainian producer of large-diameter pipes and its production capacity is about 1.6 mln tons of pipes per year.

Milk Group, part of the group Western Milk, launched a new line for cottage cheese production with a daily capacity of 5 mt of cottage cheese.

Electricity distribution company Kirovogradoblenergo [KION] announced a dividend payout of USD 3.8 mln at its AGM Friday, May 30.