NLMK reports Q2 financial results

Novolipetsk Steel of Russia (NLMK) has released the financial results for the second quarter of 2006 under the Russian Accounting Standards (RAS). According to the release, in the second quarter of 2006 the company's revenue grew 18 percent to Ruble 34.6 billion ($1.29 billion), operating profit increased 16 percent to Ruble14.09 billion ($525 million), and net income increased 11 percent to Ruble10.98 billion ($409 million) compared to the results of the second quarter of 2005. On the other hand, NLMK's net income decreased 27 percent, while revenue increased 24 percent, and operating profit increased 42 percent in the second quarter of 2006, compared to the results of the first quarter of 2006. As commented in the company, the financial results in the second quarter of 2006 increased due to strong pricing environment and sales volume growth. The decrease in the net income for the second quarter of 2006 compared to the first quarter of 2006 occurred due to changes in operating income and expenses impacted by the proceeds from the divestment of minority interests in Lebedinsky GOK in the first quarter of 2006.