On May 6, major Russian steelmaker Novolipetsk Steel (NLMK) announced its financial results for the first quarter of 2011 according to Russian Accounting Standards (RAS).
NLMK's major companies showed significant sequential improvement in their financial performance in Q1 of the current year. The financial performance of NLMK's main site at Lipetsk improved significantly on year-on-year basis. Higher steel prices, alongside a streamlined sales structure, drove revenue up 26 percent year on year to Ruble 44.5 billion ($1.6 billion), while net profit reached Ruble 6.96 billion ($0.25 billion) with a 161 percent increase from the same period of the previous year. These improvements were driven by higher sales and better market conditions. NLMK's subsidiaries experienced similar dynamics. At the same time, the seasonal decline in demand for steel products prevented NLMK from achieving quarter-on-quarter improvements.
According to the statement released by the company, in the second quarter this year NLMK expects higher steel output and sales that will be reflected positively in the plant's financials.