The Russian steel producer Magnitogorsk Iron and Steel Works (
MMK) has announced its financial results for the fourth quarter and for 2009 under Russian Accounting Standards (RAS). The results reflect
MMK (parent company) operations only and may vary significantly from the consolidated financial results under International Accounting Standards (IAS).
Accordingly, in Q4 2009,
MMK's sales decreased by five percent to Ruble 39.579 billion (about $1.34 billion), its operating income went down by 10 percent to Ruble 8.211 billion (about $279 million) mostly because of decreased output volumes, while its net profit increased by four percent to Ruble 7.478 billion (about $254 million), all compared to Q3 2009.
In Q4,
MMK shipments directed to the domestic market compared to total company shipments rose from 54 percent to 57 percent quarter on quarter, accounting for 65 percent of
MMK's total revenues from its steel product sales. The company's average steel price (in ruble) grew by six percent in Q4 compared to Q3, particularly driven by increased plate production at the new plate rolling mill 5000 in Q4 - up by 3.5 times quarter on quarter to 130,000 mt.
In the fourth quarter of 2009,
MMK produced 2.6 million mt of crude steel, while its finished steel product output amounted to 2.3 million mt - down 11 percent quarter on quarter. The decreased output was due to the weakening demand for construction steel products caused by seasonal factors.
In 2009, with a 17 percent market share,
MMK has managed to retain the leadership in
Russia among steelmakers. The company's 2009 sales under RAS amounted to Ruble 137.317 billion (about $4.67 billion), while its net profit increased by 170 percent year on year to Ruble 27.406 billion (approx. $931 million).
$1 = Ruble 29.43