Sumy Frunze (SMASH) Posts USD 11 Mn Net Income In 2004

The higher net income in 2004 comes on the back of a net loss of USD 17mn in 2003. Net sales grew by 23% in 2004 to USD 240.4mn. The company plans sales will grow to USD 285.3mn in 2005, while net income will decrease by 21% to 8.7mn. The decrease is due to higher input prices, including salaries, electrical energy and gas, while prices for some contracts, won at tenders at 2002-03 to be performed in 2005, are fixed. The share of exports to Russia will increase from 52% in 2004 to 62% in 2005, while exports to Turkmenistan will decrease from 24% to 12%. As was reported earlier, shareholders did not support an increase in the company?s charter fund, and voted for USD 2mn of net income to be distributed as dividends for 2004 at USD 0.028 per share, a dividend yield of 0.013%.