Russian steel producer Magnitogorsk Iron and Steel Works (MMK) has announced its financial results for the first quarter of 2015 according to International Financial Reporting Standards (IFRS).
In the given quarter, MMK registered a net profit of $196 million compared to a net loss of $79 million in the first quarter of the previous year, while the company's revenues declined by 19.6 percent year on year to $1.87 billion, primarily due to the ruble devaluation effect in late 2014 and the decrease of export prices for steel products.
MMK's EBITDA increased by 59.9 percent to $470 million in the first quarter of the current year, with the EBITDA margin rising from 15.6 percent to 31.1 percent.
The company expects some decrease in sales in the second quarter as compared to the high level seen in the first quarter, due to an earlier than usual restocking by metal traders during the January-February period this year and some deceleration of business activity in the construction sector. However, this effect on the financial results will be compensated for by domestic prices, maximum capacity utilization in key production facilities and a decrease in the company's expenses as a result of a favorable environment in commodity markets and implementation of the company's program aimed at improving operational efficiency.