Mechel, one of the leading Russian mining and steel groups, has announced that in the first nine months of this year it registered an increase in its net income attributable to its shareholders to $462.3 million, compared to a net loss of $339.8 million in the same period last year.
Jan-Sept 2010 | Jan-Sept 2009 | Change Jan-Sept 2010/Jan-Sept 2009 | |
Revenues from external customers | 6,976,148,000 | 4,034,220,000 | 72.9% |
Intersegment sales | 1,193,169,000 | 642,053,000 | 85.8% |
Operating income | 1,036,539,000 | 114,278,000 | 807% |
Net income /(loss) attributable to shareholders of Mechel | 462,268,000 | (339,784,000) | - |
Adjusted EBITDA | 1,388,173,000 | 416,829,000 | 233% |
"The current trends of the group's operational and financial results, which we have witnessed this year, indicate that we have managed to recover after the crisis, have restored operations and brought them to profitable levels. The expected strengthening of demand and improvement in the pricing environment for our main products will also help the company to continue large-scale financing of our strategic investment projects, optimization of the debt portfolio and entry of new distribution markets, thus increasing the company's shareholder value," Mechel's CEO Yevgeny Mikhel said.
Mechel's capital expenditure on property, plant and equipment and acquisition of mineral licenses for the first nine months of 2010 amounted to $669.4 million, of which $392.5 million was invested in the mining segment, $236.7 million was invested in the steel segment, and $33.1 million was invested in the ferroalloy segment.
In the first nine months of 2010, Mechel spent $22.5 million on acquisitions, including $18.3 million spent on acquisition of minority interest in subsidiaries.
As of September 30, 2010 Mechel's total debt was $6.9 billion.