On June 29, Russian mining and steel group Mechel announced its consolidated financial results for the first quarter of 2011. The net revenue of the company for the quarter in question increased to $2.9 billion, up 54.4 percent compared to $1.9 billion in the same period of the previous year. Mechel's net profit for the quarter increased almost fourfold year on year, exceeding market expectations by $309.1 million.
In Q1 this year, Mechel's consolidated net income attributable to shareholders of Mechel amounted to $309.1 million, increasing by 274.3 percent compared to $82.6 million in Q1 2010.
Mechel's mining segment revenue from external customers in Q1 2011 totaled $828.1 million, or 28.2 percent of the consolidated net revenue, while its steel segment revenue from external customers in Q1 2011 amounted to $1.8 billion, or 59.9 percent of the consolidated net revenue.
"Lately, demand from traditional importers of coal - China, South Korea and Japan - remained at a fairly high level. All this allows us to expect that the mining segment will show good financial results in 2011," Mechel Mining Management Company CEO Boris Nikishichev said.