Russia's third largest steelmaker Magnitogorsk Iron and Steel Works (MMK) has announced its consolidated financial results for the third quarter and first nine months of 2011 according to International Financial Reporting Standards (IFRS).
Including one-off effects, MMK's loss for Q3 this year amounted to $205 million compared to a profit of $13 million in Q2. Excluding one-offs, profit in Q3 this year amounted to $59 million. MMK's loss for the first nine months of the year amounted to $58 million, compared to $190 million profit in the same period last year.
The third quarter sales of MMK amounted to $2.430 million in value, in line with second quarter levels. Sales growth in the third quarter was driven by increased revenue from sales of high value-added (HVA) products. In the January-September period of 2011, MMK's sales amounted to $7.063 million, 22 percent higher year on year.
Third quarter EBITDA totalled $350 million, down eight percent compared to the previous quarter due to lower average steel prices, while raw materials prices remained almost unchanged at high levels. Meanwhile, MMK's EBITDA margin in the third quarter was 14.4 percent. MMK's EBITDA for the first nine months of the year totalled $1.133 million, six percent lower year on year.
In the fourth quarter this year, MMK's steel production is expected to see a slight quarter-on-quarter decline in connection with the traditional seasonal slowdown in activity in both domestic and export markets.