20th Aug 2008 07:00
August 20, 2008
MMK announces Interim Results for the Six Months ended 30 June 2008
Magnitogorsk Iron and Steel Works ('MMK'), a leading integrated Russian steel producer, today announced its consolidated financial results according to US GAAP for the six months ending 30 June 2008.
Financial Highlights
Revenue up by 41% to US$5653 million, driven by pricing and incremental volume increases
EBITDA for the period up by 25% to US$1511 million
H1 EBITDA margin at 27%, supported by Q2 EBITDA margin at 30%
Net income up by 19% to US$1031 million
Operational Highlights
Increase in steel output to 7015 th tons from 6476 th tons year-on-year
Increase in finished steel products to 6434 th tons from 5951 th tons
Continued growth in share of domestic market sales, ending the period at 69%
Price increases of over 45% achieved from 1st Quarter
Effective cost containment, supported by equipment modernization, high labour productivity and electric power self-sufficiency
Financial highlights
|
|
H1 2008 |
H1 2007 |
% |
Q2 2008 |
Q2 2007 |
% |
|
Sales |
5 653 |
4 000 |
41% |
3 484 |
2 155 |
62% |
|
EBITDA |
1 511 |
1 205 |
25% |
1 047 |
698 |
50% |
|
EBITDA margin |
27% |
30% |
|
30% |
32% |
|
|
Net Income |
1 031 |
866 |
19% |
760 |
516 |
47% |
Commenting on the results, Victor Rashnikov, Chairman of MMK's Board of Directors said:
"We have delivered another strong set of results in the face of industry cost pressures. Increased volumes, ongoing operational improvements and our commitment to low cost production have combined with an increasingly strong pricing environment to deliver sustainable top and bottom growth. As we look forward, strong demand for our high quality products and the continued development of our self-sufficiency in raw materials present us with significant opportunities to create shareholder value."
Consolidated financial statements for H1 2008 under US GAAP are to be found at: http://www.mmk.ru/eng/invrelations/b_reports/index.wbp
Presentation of the results is to be found at: http://www.mmk.ru/eng/invrelations/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 2007 the Company produced 13.3 m tonnes of crude steel, and 12.2 m tonnes of commercial products. US GAAP sales stood at USD 8.2 bn, with net income at USD 1.8 bn.
Contacts
MMK:
Elena Azovsteva +7 3519 24 90 82 e-mail: [email protected]
Evgeny Kovtunov +7 3519 24 93 55 e-mail: [email protected]
Finsbury:
Brian Cattell, Peter Russell, Sophia Matveeva +44 207 251 3801
Related Shares:
MMK.L