The Russian steelmaker Novolipetsk Steel (NLMK) has issued the Russian Accounting Standards (RAS) financial results for its main production site in Lipetsk for Q4 and 2010.
Accordingly, the five percent quarter‐on‐quarter increase in NLMK Lipetsk site's Q4 revenue was driven by higher sales on the back of the seasonal drop in prices. Overall, the year-on-year 40 percent revenue growth is attributable to a recovery in demand for key products both in domestic and export markets.
Meanwhile, in Q4, gross profit recorded by NLMK's main production site was down by eight percent quarter on quarter, driven mainly by higher Q4 production costs brought on by higher coal and scrap prices, while for 2010 it posted double-digit year-on-year gross profit growth (up 44 percent), attributable to rising average sales prices and the streamlined sales structure.
The Lipetsk site's net profit dropped 70 percent quarter on quarter in Q4, driven mainly by one-off losses including the year-end allocations to valuation reserves. The 35 percent year-on-year increase in 2010 net profit was attributable to improved results from core operations.
|
Q4 2010 (Ruble) |
Change q-o-q |
2010 (Ruble) |
Change y-o-y |
Revenue |
|
|
|
|
Gross profit |
|
|
|
|
Net profit |
|
|
|
|