Khartsyzsk Pipe reports a UAH 108.3 mln net profit in 1Q11

Khartsyzsk Pipe (UX: HRTR UK) increased its net income in 1Q11 to UAH 108.3 mln vs. a net loss of UAH 44.46 mln in 1Q10. Net revenue totaled UAH 1.4 bln (up 7.9x y-o-y). In 1Q11, gross margin amounted UAH 203.2 mln vs. a negative margin of UAH 0.8 mln in 1Q11. Andriy Gerus: The results are in line with our expectations, after the company reported a fivefold y-o-y increase in production in 1Q11 to 155.7 ths mt. We reiterate our BUY recommendation for the stock.