OREANDA-NEWS. April 20, 2011. On Apr 19 Azovstal published its FY10 financial results. The com¬pany’s net sales have increased by 7.9% qoq in 4Q10, being outpaced by 12.4% qoq costs growth, which brought gross margin to the negative UAH 16mn. SG&A expenses went up by UAH 53mn qoq and high interest expenses (UAH 111mn) persisted from 3Q10. Regarding earnings, EBITDA was a meager UAH 1mn while bottom line featured UAH 262mn loss.

Millennium Capital: the news is NEUTRAL for AZST as we have already expected the miss to our numbers after earlier earnings pre-announcement. Moreover, the EBITDA released was even slightly better than our recent estimates update (UAH 1mn reported vs UAH 103mn on recent update). Overall, there is not much incrementally new in the 4Q10 print that could upset investors further after they had already been smacked by UAH 262mn net loss in 4Q10 earlier in Mar-11.