Russia’s largest steelmaker Severstal saw fourth quarter 2011 IFRS net profit increase 7.9 percent quarter-on-quarter to $463 million, the firm said in a statement on Thursday.
Earnings per share rose seven percent to $0.46. The company’s revenue fell 17.5 percent in October-December 2011 to $3.727 billion “reflecting the weak market environment”.
EBITDA fell 24.7 percent on the previous quarter to $767 million, while the EBITDA margin went down 1.9 percentage points to 20.6 percent.
“In the fourth quarter of 2011 we maintained our EBITDA margin at more than 20 percent despite weaker steel demand and uncertainty in the global markets which impacted prices for steel, coking coal and iron ore,” Severstal CEO Alexei Mordashov said in the statement.
Severstal’s net profit for the year 2011 amounted to $2.035 billion after a $575 million net loss year-on-year, while revenue rose 23.3 percent last year to $15.812 billion.
“There are potential headwinds for the global economy and steel industry in 2012 arising from uncertainty on the European and Chinese markets,” Mordashov also said in the statement.