Mechel Q1 net profit up 270 pct to $309.1 mln

Russian coking coal and steel producer Mechel posted a 270 percent increase in its first quarter net profit to $309.1 million to U.S. GAAP, the company said on Wednesday.

Mechel’s first-quarter net profit exceeded a forecast of analysts polled by RIA Novosti who expected the company’s net financial result at $277.6 million.

Mechel’s revenues in the first quarter of 2011 grew 54.4 percent to $2.9 billion, which almost matches the forecast, while the company’s EBITDA jumped 120 percent to $566.9 million, below the $599.2 million forecast.

Mechel’s adjusted EBITDA margin grew to 19.32 percent from 13.37 percent.

The company’s operating income in the first quarter soared 203.7 percent to $448.354 million compared to the $147.624 million in Q1 2010, while operating margin almost doubled to 15.28 percent from the previous 7.77 percent. 

“The first quarter of 2011 was not easy for the company, with both positive and negative moments. Nevertheless, we have demonstrated stable operational and financial performance, kept implementing investment projects at the same high rate, and continued to optimize the debt portfolio,” Mechel CEO Yevgeny Mikhel said.

Leave a comment