NLMK’s Lipetsk site’s Q1 revenue affected by seasonal drop in demand

Thursday, 06 May 2010 15:31:29 (GMT+3)   |  
       

The Russian steelmaker Novolipetsk Steel (NLMK) has issued the Russian Accounting Standards (RAS) financial results for its main production site in Lipetsk for the first quarter of 2010.

Accordingly, in Q1 this year, NLMK's Lipetsk production site saw a 37 percent increase in its revenues and a 151.3 percent growth in its gross profit, both compared to the same period last year, due to the improvement in both export and domestic sales coupled with a rise in steel prices.

On a quarter-on-quarter basis, reduced sales volumes resulting from a seasonal decline in demand, particularly for semi-finished products and color-coated steel, coupled with the reduction of average sales prices, were the primary sources for the company's 11 percent decrease in revenue in Q1 2010. In addition, growing raw material prices, as well as increasing tariffs for the services of natural monopolies, put additional pressure on the Lipetsk production site's gross profit in Q1 2010.

Meanwhile, in Q1 2010 the company saw a net profit of Ruble 2.659 billion (about $87.88 million) compared to a loss of Ruble 4.014 billion (about $132.7 million) in Q4 2009, as there were no significant allowances for the devaluation of financial investments and bad debt. 

 

Q1 2010(Ruble thousand)

Q4 2009(Ruble thousand)

Q1 2009(Ruble thousand)

Change Q1 2010/Q4 2009

Change Q1 2010/Q1 2009

Revenue

35 256 816

39 557 344

25 714 204

-10.87%

37.11%

Gross profit

9 973 386

13 591 044

3 968 126

- 26.62%

151.34%

Operating profit

5 087 636

8 816 820

400 668

- 42.30%

13 times

Net profit

2 659 440

-4 014 454

138 858

-

19 times

In Q2 this year NLMK expects its main production site in Lipetsk to see an improvement following a seasonal pick-up of activity in the steel market and an ongoing recovery of steel prices. Growing demand for HVA flat-rolled steel will provide an additional driver for financial and operating performance in Q2 2010, said the company in its statement.


Similar articles

NLMK Group’s net profit and sales revenue rise in 2021

03 Feb | Steel News

NLMK Group's net profit down significantly in Q2

23 Jul | Steel News

NLMK Group expects its export share to increase in May

04 May | Steel News

NLMK Group’s net profit down 40.2 percent in 2019

12 Feb | Steel News

NLMK Group's net profit decreases in January-September

24 Oct | Steel News

NLMK Group posts lower net profit in H1

29 Jul | Steel News

NLMK Group’s net profit up 54 percent in 2018

07 Feb | Steel News

NLMK Group’s net profit up 63.3 percent in H1

31 Jul | Steel News

NLMK’s sales revenues up 30 percent in Q1

24 Apr | Steel News

NLMK’s sales revenues up 32 percent in 2017 amid higher steel prices

20 Feb | Steel News