Metals and Mining

Motor Sich [MSICH, U/R], one of the largest global producers of aircraft and helicopter engines, reported weak financials for 1H08. Despite the fact that net sales for that period increased by 18.7% to USD 172.2 mln, company’s net revenue decreased by 22.8 times and totaled USD 1.1 mln. At the same time, EBIT decreased by 5.1 times to USD 6.4 mln.

Alchevsk ISW [ALMK UZ, BUY] plans to launch the 3 mln mt oxygen converter No. 2 in mid-September. According to Metal Courier, volumes may not increase immediately because of insufficient pig iron capacities.

Azovstal [AZST UZ, BUY] plans to tune its new 2.5 mln mt concaster No. 6 to design capacity by the year’s end. This was disclosed by a company representative to Interfax-Ukraine at a celebration of the 75th anniversary of the plant in Mariupol.

Shareholders of Poltava GOK [PGOK UZ, HOLD] will vote on a share capital increase at a September 23 EGM.

At the August 05 AGM, shareholders of the Chervonoarmiyska Zakhidna No. 1 coal mine [SHCHZ UZ, N/R] decided to reinvest 95% of the 2007 net income of UAH 53.5 mln (USD 11.6 mln at USD/UAH 4.63). The remaining 5% will go into the company’s reserve fund.

Avdiivka Coke [AVDK UZ, Strong BUY] has increased output by 39.5% to 2.727 mln mt in 7M08. According to Interfax-Ukraine, which cited the Ministry of Industrial Policy of Ukraine, in July 2008 Avdiivka Coke produced 368 thsd mt of coke, down 6.8% from June’s 395 thsd mt.

Dniprometiz [DMPO UZ, N/R] will conduct an EGM on September 17; all topics of the agenda are related to creation of an LLC. It is not clear from the announced agenda what effect the LLC’s creation will have on the stock’s prospects.

Dniprospetsstal [DNSS UZ, U/R] will conduct an EGM on September 10. The agenda items proposed so far do not include dramatic changes such as the election of governing bodies, but does include changing the company’s corporate governance structure.

On August 01 and 05, Energomashspetsstal [ENMA UZ, N/R] reported changes in its shareholder structure following a recent share capital increase.

ArcelorMittal Kryvyy Rih [KSTL UZ, BUY] reportedly doubled YoY its net income in 1H08.