TMK bounces back with $104 mln first quarter net profit

TMK, Russia’s largest producer of steel pipes for the energy sector, posted a first quarter IFRS net profit of $104 million following a net loss of $1 million in January-March 2010, the company said on Monday.

Revenue stood at $1.7 billion, a 35 percent year-on-year increase due to price growth, improvement of product quality and sales growth. EBITDA grew by 44 percent to $293 million, while EBITDA margin rose to 18 percent from 16 percent.

Net debt edged up 4 percent to $3.853 billion comparing with December 31, 2010 mainly owing to the Russian ruble’s strengthening against the U.S. dollar, the company said in a statement.

Gross margin rose 34 percent to $391 million. Pre-tax profit skyrocketed by 554 percent in January-March 2011 to $157 million.

TMK increased its sales by 14 percent to 1,060 tons of pipes in the first three months this year.

Taking into account the first quarter results, the company maintained its 7-10 percent sales growth forecast for 2011 and plans to reduce its debt volume using funds from operating activities. TMK also expects its revenue and EBITDA in April-June 2011 to be the same as in the first quarter.


MOSCOW, June 6 (RIA Novosti)

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