MMK issues 2009 financial results under IAS, posts $219 million profit

Monday, 05 April 2010 16:54:15 (GMT+3)   |  
       

The Russian steelmaking group Magnitogorsk Iron and Steel Works (MMK) has issued its consolidated financial results for 2009 under the International Accounting Standards (IAS).

Accordingly, in 2009 MMK's net profit exceeded the expectations of analysts, amounting to $219 million (in 2008 the figure was $1.08 billion). Meanwhile, MMK's full year revenue amounted to $5.08 billion, decreasing from $10.55 billion in 2008, while its EBITDA margin in 2009 reached 25.3 percent, compared to 21 percent in 2008.

In Q4 2009, MMK's sales increased by 19 percent quarter on quarter to $1.674 billion, due to the export sales growth of steel traders within MMK group, as well as due to the consolidation of Belon's sales for Q4 2009.   

 

Q4 2009 ($ million)

Q3 2009 ($ million)

Change

Sales of MMK Group

1,674

1,404

19%

EBITDA

670

309

115%

EBITDA margin of MMK Group

40.0%

22.0%

-

Profit for period of MMK Group

219

76

193%

"MMK investment projects focused on asset base upgrade and development of HVA products in demand enable the group to generate the necessary cash flow and maintain high profitability through the steel and raw materials cycle," reads the company's statement.

Due to higher revenue growth versus operational costs, MMK increased the amount of operating profit to $234 million in Q4 2009 from $82 million in Q3 2009 to reach a 14 percent operational margin.

According to MMK's statement, its debt amount is the least among the Russian steel companies. At the end of 2009, MMK's total debt stood at $ 2.118 billion, while its short-term debt remained mostly unchanged in the fourth quarter at $828 million.


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