In its financial results according to US GAAP (Generally Accepted Accounting Principles) for the first quarter of 2012, Russian steelmaker NLMK Group's net profit decreased by 56 percent year on year to $173 million.
In the given quarter, NLMK's sales revenues increased by 31 percent to $3.09 billion, compared to the corresponding quarter of the previous year, driven by nine percent quarter-on-quarter growth in steel sale volumes.
According to the NLMK statement, its annual crude steel output in the first quarter increased to 3.6 million mt, up 15 percent quarter on quarter, with steelmaking capacity utilization rates standing at 93 percent. The company's steel sales in the first quarter amounted to 3.9 million mt, up nine percent compared to the previous quarter.
In the first quarter, domestic sales accounted for 29 percent of total sales, down one percentage point due to the seasonal slowdown in the Russian construction sector, while NLMK exported 71 percent of its products, mainly to Europe, the US, the Middle East and Southeast Asia.
Regarding the outlook for the second quarter of the year, NLMK expects revenue growth of 10 percent based on continued increase in sales. The company also anticipates that the Kaluga mini mill scheduled to be completed in 2012 will contribute to annual operating results of the long products segment.