Evraz releases 2008 financial results

Tuesday, 28 April 2009 09:45:19 (GMT+3)   |  
       

The Russian mining and steel producer Evraz Group has released its audited financial results for 2008.

Accordingly, in 2008 Evraz's revenue increased by 58.5 percent year on year to $20.38 billion, mostly due to the higher average prices of steel products and contributions from newly acquired operations in North America, South Africa and Ukraine. Evraz's sales volumes of steel products increased from 16.4 million mt in 2007 to 17 million mt in 2008.

Meanwhile, in 2008 the company's consolidated adjusted EBITDA rose by 46.9 percent to $6.323 billion, its operating cash flow went up by 52.6 percent to $4.57 billion, its gross profit grew by 44.8 percent to $7.072 billion, while its net profit went down by 11.2 percent to $1.87 billion, all compared to 2007.

Commenting on the outlook for 2009, Evraz CEO Alexander Frolov stated, "Few can doubt that 2009 is going to prove a difficult year for the global steel industry and for Evraz as one of the sector's key players."

"In order to improve our efficiency we need to get rid of our non-core activities and reduce our labor costs. We are focusing on the optimization of our production capacities and the discontinuation of cost inefficient operations that lack a competitive edge on a global scale. We have set aggressive cost reduction targets, including cuts of as much as 50 percent in certain cost lines compared with 2008 levels. We have also decreased our capital expenditure to effective maintenance levels and planned investment in 2009 is not expected to exceed $500 million. We currently plan to reduce our working capital by $700 million in 2009," Mr. Alexander Frolov said.


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