Avdiyivka Coke Posts 69% Sales Drop.

Ukraine’s biggest coke producer (AVDK: BUY) reported $232.9m in revenues for 1H06, down 69% yoy. Andriy Gostik: We believe Avidiyivka’s dramatic sales decline results from a combination of weak market conditions and an improvement in transparency. We believe AVDK’s sales figures have traditionally been inflated by sales of coal and steel produced by other companies within its parent group, System Capital Management. AVDK’s coke output fell 21% yoy, and we estimate that the coke price fell ~30% for the same period. That implies a reduction of sales of about 45%, rather than 69%.