Russian steel producer Magnitogorsk Iron and Steel Works (MMK) has announced its financial results for 2011 according to International Financial Reporting Standards (IFRS).
In 2011, MMK reported a net loss of $125 million compared to a net profit of $232 million in the previous year. In the given year, MMK's sales revenues decreased by 21 percent to $9.3 billion, while its operating profit amounted to $365 million, down 40 percent, both year on year.
During 2011, MMK Group's crude steel production increased by seven percent to 12.2 million mt compared to the previous year. However, in the October-December quarter the steelmaker's crude steel output decreased by two percent quarter on quarter to 3.1 million mt.
In the year in question, MMK Russia produced 10.6 million mt of finished steel, up four percent, while the finished steel output of MMK’s Turkish subsidiary MMK Metalurji more than tripled to 505,000 mt, both compared to 2010. MMK Metalurji is expected to reach its full capacity of 2.3 million mt of finished steel products in 2012.