Kety: 1Q06 results in line with earlier guidance

Kety published 1Q06 results that are in line with market’s and our expectations. These should not constitute a surprise as they broadly conform to Kety’s preliminary results announcement in March. Sales and EBIT for 1Q06 are higher versus management’s estimates by some 4% and 14% respectively. Net earnings of PLN 9.2m for 1Q06.are just 2% higher than PLN 9m guided by the management. We believe that the favorable changes could partly result from higher than previously expected sales of packaging division (up 4% y/y versus flat y/y guided previously) and also higher sales of Aluprof subsidiary consolidated since Febraury. More feedback is expected from analysts’s conference scheduled at noon today. We reiterate our Sell recommendation for Kety with a fair value estimate of PLN 116.8 per share.