Magnitogorsk Iron Steel Works (MMK) has posted a 77 percent drop in first-half profits, missing analyst estimates.
Net profit for the six months ending June 30 dropped to $35 million, from $147 million a year earlier, the company said in a statement.
Revenue increased 7 percent to $4.941 billion dollars over the period. The company’s adjusted EBITDA,was down 17 percent to $662 million. Analysts had forecast that the company would report revenue of $4.916 billion dollars and EBITDA of $647 million.
Meanwhile the company said Tuesday it has decided to issue three separate bonds totaling 20 billion rubles.
The company will sell five and 10 million bonds with a nominal value of 1,000 rubles each and in two tranches with maturities of 10 years.
The MMK Group, controlled by billionaire Viktor Rashnikov, is one of the Russia’s biggest metals firms. The company produced a total of 13.2 million tons of crude steel in 2011.