Russian steel producer Magnitogorsk Iron & Steel Works (
MMK) disclosed that the company's net profit fell from Rubles 33.5 billion ($1.19 billion) in 2004 to Rubles 29.8 billion ($1.06 billion) in 2005 due to the increases in energy and material prices.
MMK's revenues rose from Rubles 133.5 billion ($4.74 billion) a year earlier to Rubles 147.4 billion ($5.23 billion) in 2005. On the other hand,
production cost increased from Rubles 88.4 billion ($3.14 billion) to Rubles 105.1 billion ($3.73 billion).
In 2005, finished steel
production rose from 10.14 million metric tons to 10.2 million metric tons. In addition, rolled steel products output increased from 10.298 million metric tons to 11.02 million metric tons.
Steel output grew from 11.28 million metric tons to 11.39 million metric tons in 2005, said the company.