Russian steel producer Magnitogorsk Iron and Steel Works (MMK) has announced its financial results for 2012 according to International Financial Reporting Standards (IFRS).
In 2012, MMK reported a net loss of $94 million compared to a net loss of $125 million in the previous year. In the given year, MMK's sales revenues increased by 0.2 percent year on year to $9.328 billion, driven by higher production volumes of finished steel products and improvements in product structure.
MMK Group's operating profit for 2012 decreased by 27 percent year on year to $266 million. This was due to the $50 million increase in operating loss for the steel segment in Turkey in 2012 and due to a decline of $132 million in the operating profit of its coal segment.
MMK Group's EBITDA for 2012 increased by 1.5 percent year on year to $1.356 million, providing a margin of 14.5 percent, up 0.2 percentage points compared to 2011. The main reason for the increase in EBITDA was the 13.1 percent increase in profitability in the Russian steel segment.