The Russian steel producer Magnitogorsk Iron and Steel Works (MMK) has announced that under Russian Accounting Standards (RAS) in the second quarter of the current year it registered a 24 percent quarter-on-quarter increase in its net profit, excluding revaluation of investment in securities, to Ruble 4.678 billion (about $153.9 million).
Accordingly, in Q2 2010 MMK's sales increased by 26 percent quarter on quarter to Ruble 53.117 billion (about $1.75 billion), due to the growth of steel output and average steel prices. At the same time, MMK's operating income went up by 53 percent quarter on quarter to Ruble 9.109 billion (about $299.6 million), also driven by increased output and finished steel product sales in Q2 2010, and as the growth of average steel prices for one metric ton exceeded cost inflation.
In Q2, the share of MMK shipments directed to the domestic market rose from 64 percent to 65 percent quarter on quarter, accounting for 71 percent of revenue. MMK's average steel price grew by 15.1 percent in Q2 2010 compared to Q1 2010, amounting to $647/mt.
As SteelOrbis previously reported, in Q2 2010 MMK produced 2.984 million mt of crude steel - up nine percent quarter on quarter, while its finished steel product output amounted to 2.623 million mt - up seven percent quarter on quarter.
$1 = Ruble 30.4