11th Jun 2014 07:50
LONDON (Alliance News) - Evraz PLC will tell an Investor Day in London Wednesday it is currently on track to meet its cost-cutting guidance of USD400 million for 2014, due to operational savings at its Evrazruda operations and cost-reduction plans being put in place for its other operations.
The Russian steel maker said in a statement outlining presentations for the event that it achieved USD94 million in cost savings and made capital expenditures of USD158 million during the first three months of 2014, while it is on track to meet its 2014 guidance for savings, including USD50 million of general and administrative expenses.
The company said that, after a major turnaround at its Evrazruda iron ore operations, 40% of the company's subsidiary Evraz ZZSMK's needs are being provided at a competitive cost, with cost cutting and optimisation plans in place for further improvements.
It said that in coking coal, the company is implementing an optimisation plan to strengthen profitability and that its Timir iron ore project will start up, subject to securing project finance.
Evraz added that reduced development capital expenditures in its steel business are moving forward after selective implementation of investment projects.
In April, the company reported a net loss of USD522 million for the year, compared with a loss of USD398 million in 2012, as revenue fell to USD14.41 billion from USD14.73 billion. Its earnings before interest, tax, depreciation and amortisation dropped 10% to USD1.82 billion.
The company separately announced in April that its crude steel production fell in its first quarter due to scheduled maintenance, and average selling prices fell in Russia for its steel products compared to the previous year.
However, at the time, the firm said that in the second quarter it expects to grow the output of crude steel and steel products at its Russian mills due to reduced scheduled downtime for maintenance and repairs.
Evraz shares were down 1.3% to 98.22 pence during early trading on Wednesday.
By Tom McIvor; [email protected]; @TomMcIvor1
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Evraz