Mechel reports 2005 full year results

A leading Russian integrated mining and steel group Mechel announced today results for full year, ended December 31, 2005. Mechel's financial results According to the financial results for year 2005, Mechel's net revenue increased 4.6 percent year on year to $3.80 billion in 2005. Operating income decreased from $750.81 million in 2004 to $515.73 million in 2005. EBITDA decreased 29.8 percent to $726.252 million during the same period. Alexey Ivanushkin, Mechel's Chief Operating Officer commented as the following on the company's year 2005 financial results: ’2005 was a challenging year for Mechel, as higher raw material costs and a more competitive pricing environment negatively impacted our profitability'. Mechel's mining segment results According to the results for full year ending December 31, 2005, Mechel's output of coke mining decreased 8 percent, that of steam coal rose 12 percent and that of iron ore concentrate rose 17 percent year on year to 8.583 million tons, 7.063 million tons, and 4.522 million tons respectively in 2005. Mechel's steel segment results Mechel reported that its output of pig iron decreased 14 percent, that of crude steel decreased 5 percent, that of rolled products decreased 2 percent year on year to 3.349 million ton, 5.899 million tons and to 4.6 million in 2005.