Russian steel producer Magnitogorsk Iron and Steel Works (MMK) has announced its financial results for the first quarter of the current year according to International Financial Reporting Standards (IFRS).
In the first quarter, MMK saw a net profit of $19 million, up 35.7 percent compared to a net profit of $14 million in the first quarter of 2012. In the first quarter this year, MMK's sales revenues decreased by 5.9 percent year on year to $2.283 billion.
In the quarter in question, MMK Group's crude steel production decreased by 10 percent year on year to 3.075 million mt. During the first quarter, MMK Russia produced 2.744 million mt of finished steel, down 0.6 percent, while the finished steel output of MMK's Turkish subsidiary MMK Metalurji decreased by 29.6 percemt to 178,000 mt, both year on year.
In the second quarter this year, amid declining steel prices the company plans to keep its production volumes as well as sales volumes of finished steel products stable as compared to the first quarter. This will be supported by the high level of capacity utilization at its thick plate Mill 5000 and cold rolling Mill 2000. Lower iron ore price indices during the second quarter are expected to support MMK Group's financial results.