print version 

Find company
Home About the ProjectContact usFor the Clients
Enter code or ISIN
 
alpha / industry search

Issuers' Corner
Press Releases
Annual Reports Library

Financial Statements
SEC & FFMS Filings
Corporate Presentations
GM Materials
Issues Documents
Corporate Governance Materials
Russian Company Guide
Company Profiles
Corporate Calendar
Markets Corner
Consensus Estimates
Media Corner
News Line


Get updates



Home  Issuers' Corner  Press Releases REGISTER LOG IN

Press Releases

company search
all press releases
all Novolipetsk Steel press releases

Novolipetsk Steel

May 17, 2013

Q1 2013 US GAAP Results

NLMK, the LSE-listed leading steel producer, today announces its consolidated US GAAP results for Q1 2013.
Q1 2013 KEY HIGHLIGHTS:

·         Revenue: $2,856 million (+2% qoq)

·         Net income: $38 million (Net loss $22 million in Q4 2012)

·         EBITDA: $318 million (-18% qoq), EBITDA margin 11% (14% in Q4 2012)

·         Net debt: $3,453 million (-3%)

·         Sales: 3.8 million t (+2% qoq)

·         Sales to external markets: 65% of the total sales (+1p.p. qoq)

·         Sales of high value added products: 1.33 million t (+9% qoq)

·         Steelmaking capacities utilization rate: 94%.

OUTLOOK

In Q2, revenue is expected to increase in the range of 2-3% qoq, driven by the seasonal recovery of demand in Russia and the corresponding increase in prices for rolled steel in the region, as well as the time lag in the recognition of export sales.  These factors, coupled with stable costs, will drive profitability up qoq.

Grigory Fedorishin, Vice President for Finance and NLMK CFO, commented on the Q1 2013 results:

“Q1’13 sales volumes went up by 2% qoq to 3.8 million t. NLMK’s key steelmaking operations were running at close to maximum levels. We increased our sales of value added products with an 8% sequential growth in rolled steel sales that reached 2.6 million t. These factors were behind a 2% yoy growth in the sales revenue that reached $2.9 billion partially compensating for lower steel prices. EBITDA was lower by 18% qoq to $318 million pressured by lower selling prices while the prices for raw materials remained unchanged. EBITDA margin was 11%.

“As the situation in the global steel markets remains challenging the management confirms its commitment to investment discipline and tight cost control across the entire value chain. Earlier this year we have adopted a management gains program to increase operational efficiency of upstream operations at our core site in Lipetsk. Expected costs savings in 2013 are $60 million with a targeted structural savings of $100 million per year without any additional capex required for this. Working capital management remains one of the priorities, and we have retained it stable despite growth in sales in Q1 2013.

Q1 the company reduced its capex by 48% qoq to $154 million. Free cash flow was used to decrease the net debt by 3% to $3.45 billion.

“In Q1 NLMK continued to optimize its debt portfolio, downsizing its short term debt. In February we successfully placed a five year Eurobond issue of $800 million."

 

 

 

Search by industry

Agriculture, Foresty and Fishing | Chemicals | Engineering | Ferrous Metals | Financial, Insurance & Real Estate | Food & Kindred Products | General Construction | Information Technology | Media & Publishing | Non-Ferrous Metals | Oil & Gas | Pharmaceuticals | Power Industry | Precious Metals and Diamonds | Telecommunications | Transportation | Wholesale & Retail Trade

Search by alpha index

A B C D F G H I K L M N O P R S T U V W X Z


Site Map
© RUSTOCKS.com
Privacy Statement | Disclaimer