Mechel releases first quarter earnings
Mechel OAO, a leading Russian integrated mining and steel group, reported that its net income for the 2005 first quarter (ended March 31) more than tripled year on year due to exceptionally strong performance from the companys mining segment. Peak prices for coking coal and iron ore helped Mechel post first quarter net revenue of $1.05 billion, up 60 percent from the previous year. Net income for the first quarter was reported as $169.5 million, up nearly 220 percent compared to $53.0 million the previous year. Mechel CEO Vladimir Iorich said, "First quarter 2005 was a very successful period for Mechel, one in which we saw continued strong operational and financial performance, particularly from our mining segment as raw material prices remained at peak levels. The demand for our mining and steel products, as well as average realized prices and selling volumes, remained high throughout most of the first quarter both domestically and internationally, yielding solid results. However, Iorich did caution that the current situation in the steel market likely means that first quarter will be Mechels best quarter of the year.