Arcelor Mittal Kryviy Rih Sets 2007 Growth Targets

At its AGM yesterday, shareholders of Arcelor Mittal Kryviy Rih (KSTL: U/R) approved 2006 results and set 2007 targets for production and financial performance. This year, the company expects to raise its net income to about USD 600 mln (+3.4% yoy). Sales target for 2007 is USD 3 bln (+7.1% yoy). In terms of production plans, steel output will be boosted 8.8% yoy to 8.3 mln mt and pig iron output will grow 7.4% to 7.3 mln mt. Shareholders voted not to pay out dividends. It was officially announced that the steel producer would change its name from Mittal Steel Kryviy Rih to Arcelor Mittal Kryviy Rih. Eugene Cherviachenko: Both sales and net income targets are below our forecast by 6.3%. We will account for the management’s estimates into our upcoming steel sector update.