Azovzahalmash Decreases Net Revenues by 11% in 2005, Net Income Soars.

The company had USD 239 mln in net revenues in 2005. Azovzahalmash’s (AZGM: BUY) EBITDA increased by 87% to USD 8.9 mln, while net income grew 18.6 times to USD 1.2 mln (0.5% net margin). Concorde Capital: The reported figures are significantly lower of what we expected for AZGM (Sales USD 355.6 mln, EBITDA 26.4 mln, net income 12.1 mln), and worse than the results, posted by Mariupol Heavy Machinery (MZVM: BUY), another Azovmash-managed company. The higher growth rate of the heavy machinery segment (attributed to MZVM), and the management’s decision to disclose more sales and profits through MZVM were likely to be the two main factors that lowered the AGM’s results.