Magnitogorsk Iron and Steel Works (‘MMK’), a leading integrated Russian steel producer, today announced its consolidated financial results according to US GAAP for the six months ending 30 June 2008.
Financial Highlights
* Revenue up by 41% to US$5653 million, driven by pricing and incremental volume increases
* EBITDA for the period up by 25% to US$1511 million
* H1 EBITDA margin at 27%, supported by Q2 EBITDA margin at 30%
* Net income up by 19% to US$1031 million
Operational Highlights
* Increase in steel output to 7015 th tons from 6476 th tons year-on-year
* Increase in finished steel products to 6434 th tons from 5951 th tons
* Continued growth in share of domestic market sales, ending the period at 69%
* Price increases of over 45% achieved from 1st Quarter
* Effective cost containment, supported by equipment modernization, high labour productivity and electric power self-sufficiency
Financial highlights
|
|
H120 08 |
H120 07 |
% |
Q220 08 |
Q220 07 |
% |
|
Sales |
5 653 |
4 000 |
41% |
3 484 |
2 155 |
62% |
|
EBITDA |
1 511 |
1 205 |
25% |
1 047 |
698 |
50% |
|
EBITDA margin |
27% |
30% |
|
30% |
32% |
|
|
Net Income |
1 031 |
866 |
19% |
760 |
516 |
47% |
Commenting on the results, Victor Rashnikov, Chairman of MMK’s Board of Directors said:
“We have delivered another strong set of results in the face of industry cost pressures. Increased volumes, ongoing operational improvements and our commitment to low cost production have combined with an increasingly strong pricing environment to deliver sustainable top and bottom growth. As we look forward, strong demand for our high quality products and the continued development of our self-sufficiency in raw materials present us with significant opportunities to create shareholder value.”
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