The Russian steel producer Magnitogorsk Iron and Steel Works (MMK) has issued its consolidated financial results for the first quarter of 2009 under the International Accounting Standards (IAS).
Accordingly, due to the fluctuation in the US dollar-ruble exchange rate, in Q1 2009 MMK's sales decreased by 29.5 percent quarter on quarter to $965 million. Meanwhile, the volume of domestic sales amounted to 1.1 million mt, or 58 percent of total sales in Q1 2009. In money terms, shipments to Russia and the CIS accounted for 65 percent of MMK's revenue - the highest level in the Russian steel sector.
During the period in question, MMK's EBITDA became positive and equaled $99 million, which is $568 million higher compared to Q4 2008, while its EBITDA margin equaled 10.3 percent. The company's net loss in Q1 2009 amounted to $110 million - down $292 million compared to Q4 2008.
According to the company's release, the fluctuation of the US dollar-ruble exchange rate throughout the first quarter of 2009 significantly influenced all of MMK's balance sheet items. The company's total debt stands at $1.694 billion, with its net debt at $775 million.
In Q1 2009, MMK's crude steel production increased by 26 percent to 2.07 million mt, and its output of commercial steel products went up by 24 percent to 1.917 million mt, both compared to Q4 2008. MMK's production capacity utilization rate in Q1 2009 increased to 61 percent from 49 percent in Q4 2008. MMK focuses on output of high value added products and does not produce slabs.