It is reported that Alchevsk Iron and Steel Works (ALMK) has announced a net loss of UAH 1,013 million in FY 2010 implying the net loss of UAH 261 million in Q4 2010.
According to Millennium Capital, “The news is neutral for ALMK. The Q4 2010 loss of UAH 261 million is 1.7 x smaller than our expectations of UAH 450 million and we wait for the full disclosure to trace the source of improvement. Meanwhile the yearly loss went up from UAH 890 million in FY 2009 to UAH 1,013 million in FY 2010. The weak financials in FY 2010 are due to the working capital shortfalls experienced by the company through the entire 2010, but now with a recent $500 million debt facility replenishing the WC of all IUD plants we see higher utilization and scale effects driving significant improvement in performance of ALMK in FY 2011”. (Millenium Capital)
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