MMK Surges Back into the Black in Q3

MOSCOW, November 23 (RIA Novosti) – Russian steel giant MMK posted an IFRS net profit of $47 million for the first nine months of 2012, up from a loss of $58 million for the same period last year, the company said on Friday.

That was better than a forecast by analysts contacted by Prime news agency, who had expected to see a profit of around $23 million.

Revenues for the nine-month period grew 2.8 percent to $7.260 billion, with EBITDA falling 6.4 percent to $1.060 billion. Analysts had expected slightly higher revenues of $7.297 billion, with EBITDA of $1.024 billion.

Net profit for the third quarter was $82 million, up from a loss of $49 million the preceding quarter, with third quarter EBITDA at 17.2 percent, up from 14.7 percent the preceding quarter.

Revenue for the third quarter stood at $2.319 billion, down 7.8 percent from the second quarter’s $2.156 billion.

The company said low prices over the last year had affected its results, adding that it expects to see this improve in the near future.

“At present, world steel prices are close to their lowest level and MMK does not expect a recovery in prices sooner than early 2013 with the beginning of the construction season and inventory restocking,” MMK said. “However, the company’s efforts to improve its product mix, as well as its strong position on the domestic market and the continuing fall in key raw material prices, should mitigate the negative impact of low steel prices on the company’s financial results.”


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