VIZ-Stal, the Ekaterinburg-based transformer steel producing subsidiary of the Russian steelmaker Novolipetsk Steel (NLMK), in Q1 this year registered a 50 percent growth year on year in its revenues under Russian Accounting Standards (RAS), while its sales volumes for the quarter increased 2.5-fold year on year.
Meanwhile, the less significant increases in VIZ-Stal's gross profit and operating profit were primarily attributable to growing prices for hot rolled steel, the key raw material for the manufacture of transformer steel, reads NLMK's statement.
VIZ-Stal saw weaker a Q1 financial performance on quarter on quarter basis, mainly because of a 31 percent drop quarter on quarter in its sales. This decline is mostly of technical nature and is associated with FOB-based rolled product deliveries, resulting in a delayed recognition of March product deliveries. In addition, average transformer steel prices were lower quarter on quarter, which also contributed to a lower financial performance of the company.
Q1 2010 (Ruble thousand) | Q4 2009 (Ruble thousand) | Q1 2009 (Ruble thousand) | Change Q1 2010/Q4 2009 | Change Q1 2010/Q1 2009 | |
Revenue | 1 901 604 | 3 074 456 | 1 265 315 | -38.15% | 50.29% |
Gross profit | 775 195 | 1 619 258 | 736 186 | -52.13% | 5.30% |
Operating profit | 616 641 | 1 420 251 | 601 388 | -56.58% | 2.54% |
Net profit | 440 104 | 853 579 | 572 675 | -48.44% | -23.15% |