The Russian steelmaker Magnitogorsk Iron and Steel Works (MMK) has released its operational results for the first nine months of 2008 under the Russian Accounting Standards (RAS).
Accordingly, during the given period, the mill recorded a 3.8 percent increase in its crude steel production to 10.3 million mt and a three percent rise in its commercial steel products, both compared to the same period last year.
MMK's hot rolled coil price during the first nine months of 2008 registered an increase of 53 percent, while the company's domestic sales share grew to 74 percent.
During the period in question, MMK's net profit increased by 29 percent to Ruble 41.765 billion (approx. $1.573 billion), its revenue rose by 39 percent to Ruble 198.28 billion ($7.466 billion) and its operating income grew by 38 percent to Ruble 55.88 billion ($2.104 billion), all compared to the company's RAS results in the first nine months of 2007.
As SteelOrbis earlier reported, MMK has decided to adjust its production plans according to the market situation and to reduce its output in October 2008 to 850,000 mt. Moreover, MMK is to optimize its production portfolio to reduce the share of products with low-added value.
According to the release, MMK is still confident in its long-term strategy and is to complete its two main projects, the plate mill 5000 and color coating line No. 2, in 2009. The schedule of operating repairs at MMK has been adapted to meet production plans.