OMZ (Uralmash-Izhora Group) published its 2005 interim IFRS financial results today. Sales during the first half of 2005 rose by 94% as compared to the first half of 2004 to reach US$341.5 million, with international sales contributing 60% to total sales. Operating profit reached US$ 20.7 million, an increase of 60% from the same period in 2004. EBITDA rose to US$ 30.4 from US$16.9 million.
Commenting on the financial results of the Company, Mr. Sergey Filatov, Chief Financial Officer of OMZ, noted that the results of the first half of 2005 demonstrate an increase in the share of international sales due to the consolidation of the Skoda Steel and Skods JS subsidiaries whose sales are destined predominantly to the European market. He added that OMZ’s management has undertaken a number of steps to reduce costs and, as a result, general and administrative expenses in the 1H 2005 are 10% lower as compared to the same period in 2004. Mr. Filatov pointed that the 1H 2005 results give OMZ’s management confidence that the company will achieve the annual financial targets it had announced earlier.
The complete 1H 2005 financial accounts of OMZ (Uralmash-Izhora Group) can be viewed on the Company’s website www.omz.ru and will be available at the Document Viewing Facility of the UKLA at The Financial Services Authority, 25 The North Colonnade, Canary Wharf, London E14 5HS, UK.