28 Apr 2010 09:41
April 28, 2010
OJSC "Magnitogorsk Iron and Steel Works" (MMK)
financial results under Russian Accounting Standards (RAS) for Q1 2010
The results reflect MMK (parent company) operations only and may vary significantly from the consolidated financial results under IAS.
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- MMK produced 2.453 mln tons of finished products in Q1 2010
- MMK revenue under RAS increased by 6% compared to Q4 2009 and amounted to RUR 42.143 bn in Q1 2010
- MMK net profit under RAS amounted to RUR 6.310 bn in 2010
Key Q1 2010 operational highlights
·; Crude steel output in Q1 2010 amounted to 2.732 th. tons, finished products output - 2.453 th. tons.
·; Output growth is accounted for by increased production of thick plate at Plate Mill 5000 and increased production of downstream products.
·; MMK average steel price (in RUR) grew by 3% in Q1 2010 q-o-q.
·; Domestic shipments increased by 242 th. tons in Q1 q-o-q.
·; The share of MMK domestic shipments grew from 57% to 64% in Q1 2010 q-o-q, to account for 71% of proceeds.
Key financial highlights for Q1 2010
Key Profit & Loss statement figures for Q1 2010
·; Q1 2010 sales amounted to RUR 42.143 bn which is 6% higher q-on-q. The increase is accounted for by growth of volumes and average steel price.
·; Operating income decreased to RUR 5.946 bn. due to growth of natural monopolies rates, coal prices and base wage rate indexation at the beginning of the year.
·; Net profit amounted to RUR 6.310 bn in Q1 2010.
Balance sheet as of April 1, 2010 (compared to balance sheet as of January 01, 2010)
Total assets amounted to RUR 257.035 bn, which is 6% higher compared to Jan 1, 2010.
Assets value increased by RUR 13.665 bn as the result of:
·; increase of non-current assets by 6% or RUR 10.212 bn (due to construction and acquisition of fixed assets and revaluation of the stake in Fortescue Metals Group Ltd on balance).
·; change of receivables by RUR 6.019 bn.
The share of long-term liabilities in total liabilities increased, while the share of short-term liabilities went down.
Long-term loans and borrowings grew to RUR 38.116 bn as the result of organic growth programme aimed to widen the product portfolio and to increase the share of HVA products.
Short-term liabilities went down to RUR 26.074 bn because of decreased short-term loans and borrowings by 21% to RUR 6.855 bn.
Equity accounts for 70% of total assets.
Contacts
Evgeny Kovtunov
+7 3519 24 93 55
e-mail: kovtunov@mmk.ru
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OJSC MMK is among the world's largest steel producers and is one of the leaders of Russia's steel industry. The company's operations in Russia include 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 higher value added goods. In 2009 the company produced 9.6 mln tons of crude steel and 8.8 mln tons of commercial products. MMK Group revenue in 2009 stood at USD 5.081 bn, EBITDA at USD 1.285 bn, profit for the period - USD 219 mln.
MMK.L (MMK)