Russia’s fourth largest steelmaker Novolipetsk Steel (NLMK) saw first quarter 2012 net profit increase 13 percent quarter on quarter to $173 million to US GAAP, the firm said in a statement on Thursday.
The company’s net profit was below a consensus forecast of analysts polled by RIA Novosti of $185 million, with first quarter EBITDA increasing 17 percent to $432 million “as a result of reduced costs and improved sales efficiency” and revenue going up one percent quarter on quarter to $3.094 billion.
NLMK’s steel products sales grew nine percent in January-March 2012 to $3.857 billion owing to negative market sentiment in the fourth quarter of 2011.
The company’s net debt increased five percent in the first three months of this year to $3.538 billion and net debt/EBITDA margin went up to 1.69 from 1.49.
“In the second quarter, we expect revenue growth of 10 percent based on continued increase in sales. We expect an EBITDA margin of approximately 17-19 percent,” NLMK said.