Kremenchug Steel To Increase Charter Fund.

The company will vote on an additional share issue to double its statutory capital to USD 52.3 mln at its EGM on the June 9. Recently TAS business group, related to Sergey Tihipko, the former head of the National Bank of Ukraine (NBU), took control of the company from Bank Forum by appointing a new board of directors. Concorde Capital: Last year, despite a 13% yoy drop in output of foundry products for freight cars and trucks, the company’s revenues increased 5% yoy to USD 99 mln. This year production volumes slipped by another 39% yoy, to 11 ths mt in 1Q06, while sales receded significantly less (11% yoy) to USD 17 mln. The company’s top-line dynamics are worrying: during the last three quarters the company’s revenues have been shrinking yoy: by -1% to -11% depending on quarter. Though it is possible that part of this decline has was caused by transfer pricing through a related trading house. On the positive side, reported profitability (which declined from over 20% EBITDA margin in 2003, to below 10% in 2004-first half of 2005) over the last four quarters has been recovering. The company’s EBITDA margin grew from 8.9% in 1Q05 to 13.1% in 1Q06, the net margin from 0.4% to 6.0%.