In line with expectations, however with a delay, EU members agreed on the cut of aluminium import tariffs cut from 6% to 3%.
Our view: The decision was expected since it was officially proposed at the end of 2006. Taking into account the delay we have assumed in our model the decrease to be effective since July 2007. Kety imports some 23k tons of raw aluminium annually, all with the 6% tariff, and the cut would enable the company to generate some PLN 5m of annual savings on
EBIT. The decrease in the tariff is not included in the management’s forecast for 2007. We could expect some positive trading impact.