Mariupol Illicha (MMKI: HOLD) Top-Line Growth Outpaces Net Income

MMKI increased 1Q05 net income by 11% YoY to USD 111 mn, while Sales expanded by 40% yoy to USD 776 mn. Concorde Capital: We expect some slowdown in the company’s growth later this year. However, we improved our sales growth forecast for 2005 to  + 15% from our previous estimate of 7% to USD 3,115 mn. Due to growing pressure from input prices, we expect lower profitability in 2005, with the EDITDA margin decreasing to 18% and net margin to 10%, compared to 14% in 2004.