ZaporizhCoke’s Net Income Slips 41% in 2006

ZaporizhCoke (ZACO: BUY) released its 2006 net income of USD 10.4 mln (-41.4% yoy). The company also reported a decline in sales to USD 321.5 mln (-6.2% yoy) and a drop in profit before taxes to USD 1.3 mln (from USD 24.8 mln in 2005).Eugene Cherviachenko: ZaporizhCoke’s sales were higher than our forecast of USD 311 mln by 3.3%, though its net income was significantly less (our estimate was USD 16.2 mln). We are awaiting the release of complete financial results that will shed light on the decrease.