The Russian
steelmaking group Magnitogorsk Iron and Steel Works (
MMK) has issued its consolidated financial results for the second quarter of 2010 under the International Financial Reporting Standards (IFRS).
Accordingly, in Q2 2010,
MMK's profit for the period excluding one-off items amounted to $122 million, which is 30 percent higher quarter on quarter; however, its profit for the period including one-offs, mainly differences of currency exchange rate and allowance for doubtful accounts receivable, amounted to $53 million.
MMK's Q2 2010 sales increased by 25 percent quarter on quarter to $2.068 billion, while its average realized price grew in Q2 by 15 percent quarter on quarter, due to exposure to growing market segments and increasing share of high value-added (HVA) products.
In Q2 2010,
MMK's production cost for slab grew to $320/mt in comparison with $280/mt in Q1 2010, and its cost inflation attributable to raw material prices was offset by 25 percent due to cost control measures. In addition, due to price growth and the growing share of HVA products, in Q2
MMK registered a17 percent increase in its EBITDA to $437 million.
According to the company's statement, in Q2 2010
MMK's export shipments increased by two percent, while its domestic shipments went up by nine percent, both compared to Q1. Shipments to
Russia and the
CIS accounted for 65 percent of
MMK's overall shipments in Q2. In money terms, sales to
Russia and the
CIS accounted for 71 percent of total steel products sales. Pipe manufacturers and machinery-builders (including automakers) remained the major customers of
MMK in the domestic market in Q2 2010, accounting for 37 percent and 23 percent of
MMK overall domestic shipments respectively. Meanwhile,
MMK's key export markets in Q2 remained the Middle East and Europe, which accounted for 33 percent and 32 percent of all export shipments respectively.
As of June 30 2010,
MMK's total debt amounted to $2.88 billion.