Russian steel producer Magnitogorsk Iron and Steel Works (MMK) has announced its financial results for the first quarter of 2012 according to International Financial Reporting Standards (IFRS).
In the first quarter, MMK reported a net profit of $14 million, down 90 percent compared to a net profit of $134 million in the first quarter of 2011. In the given quarter, MMK's sales revenues increased by 9.43 percent to $2.4 billion, while its operating profit amounted to $33 million, down 79 percent, both year on year.
In the quarter in question, MMK Group's crude steel production increased by 11 percent to 3.4 million mt compared to the corresponding quarter of the previous year. During the first quarter, MMK Russia produced 2.76 million mt of finished steel, up two percent, while the finished steel output of MMK's Turkish subsidiary MMK Metalurji increased nine times to 253,000 mt, both year on year.
According to company statement, production of finished steel products at Magnitogorsk in the second quarter will remain at about the same level as in the first quarter. An expected increase in demand for steel in Russia in 2012, the introduction of new products at Magnitogorsk (cold rolled Mill 2000) and MMK Metalurji reaching full production capacity will allow MMK to increase its output of finished steel products.