NLMK issues Jan-Sept US GAAP financial results

The Russian steel producer Novolipetsk Steel (NLMK) has released its US GAAP (Generally Accepted Accounting Principles) financial results for the first nine months of 2006. Accordingly, during the period in question NLMK recorded a 29.6 percent increase in sale revenues to $4.4 billion, a 61.1 percent rise in net profit to $1.7 billion, a 27.1 percent increase in gross profit to $2.05 billion, a 15.3 percent rise in EBITDA to $1.8 billion and an 18.3 percent increase in operating income to $1.7 billion. The company's EBITDA margin decreased to 42 percent in the first nine months of 2006 from 47.2 percent registered during the same period of 2005. Increased production and sales volumes as well as consolidation of the newly acquired subsidiaries – DanSteel A/S, Prokopievskugol Group of Coal Companies, Altai-koks and VIZ-Stal were the main drivers of NLMK's strong performance in the first nine months of 2006, the company's official statement said.