21 Apr 2009 07:00
April 21, 2009
OJSC "Magnitogorsk Iron and Steel Works" (MMK)
announces its Q1 2009 financial results under Russian Accounting Standards (RAS)
The results reflect MMK operations only and do not relate to subsidiaries or affiliated companies.
Key Q1 2009 operational highlights
Crude steel output 2.1 mt (+25.6% to Q4 2008)
Finished steel products output 1.9 mt (+24.3% to Q4 2008)
Key 2008 financial highlights
The growth in Q1 2009 financial results is driven by increased capacity utilization rates and output volumes. These were spurred with stronger demand for steel products, especially in the domestic market. External factors were also significantly supported by a strict financial policy based on the crisis management programme. Implementation of the programme allowed to reduce costs, cut down payables and receivables as well as to increase the amount of cash on the balance of MMK.
Q1 2009 profit & loss statement
Q1 2009 revenues up to RUR 28.3 bn (RUR 27.7 bn in Q4 2008).
Operating income up by RUR 6.6 bn to RUR 4.4 bn.
Net income amounted to RUR 3.9 bn which is RUR 27.3 bn higher than Q4 2008 figure.
The growth of net income in Q1 2009 compared to Q4 2008 is attributed to the following factors:
operating income increase due to 9% growth of sales volumes in cash terms and 18% decrease of production costs for 1 ton of metal products
increased results of financial investments revaluation (due to market price growth of Russian and foreign entities' securities in possession of MMK), against such revaluation for Q4 2008 which resulted in losses.
prices markdown for the raw material stock in Q4 2008.
Balance sheet as of March 31, 2009
Total assets amounted to RUR 231.9 bn.
The balance sheet value of non-current assets grew by 7% compared to Dec 31, 2008 in the result of:
capital investments growth by RUR 9.2 bn.
positive revaluation of long-term investments by RUR 2.9 bn.
Current assets value decreased by 13% due to the following:
receivables decrease by RUR 4.2 bn.
inventories decrease by RUR 6.0 bn.
Cash grew by RUR 3.1 bn. Long-term liabilities increased by 48% to RUR 28.3 bn as the result of the long-term investment programme implementation.
Short-term liabilities went down by 29% to RUR 31.2 bn due to payables decrease.
* * *
Financial statement for Q1 2009 results under RAS is to be found at: http://www.mmk.ru/rus/shareholders/b_reports/r_reports/index.wbp
The presentation of the Q1 2009 results under RAS is to be found at:
http://www.mmk.ru/rus/shareholders/presentations/index.wbp
Information on MMK:
The Magnitogorsk Iron and Steel Works OJSC (MMK) is among the world's largest steel producers and is one of the leaders of Russia's steel industry. The Company is a large steel producing complex encompassing the entire production chain, from preparation of iron ore to downstream processing of rolled steel. MMK turns out a broad range of steel products with a predominant share of value added goods. In 2008 the Company produced 12m tonnes of crude steel and 11m tonnes of commercial products.
Contacts
Evgeny Kovtunov +7 3519 24 93 55 e-mail: kovtunov@mmk.ru