NLMK releases 2006 RAS financial results

The Russian steel producer Novolipetsk Steel (NLMK) has announced its 2006 financial results under the Russian Accounting Standards (RAS). According to the company release, in 2006 NLMK's sales revenue increased by 17.7 percent, gross profit rose by 28.8 percent, operational profit rose by 21.5 percent and net profit increased by 43.6 percent year on year. The respective figures in Rubles were 140.3 billion ($5 billion), 65.3 billion ($2.5 billion), 56.8 billion ($2.1 billion) and 50.5 billion ($1.9 billion). NLMK's subsidiary VIZ-Stal has also shown very strong financial results under RAS in 2006. Accordingly, the company's sales revenue increased by 52 percent, its gross profit increased by 118 percent, its operating profit rose by 134.4 percent and its net profit increased by 161.2 percent year on year in 2006. The respective figures in Rubles were 15.7 billion ($ 604 million), 9.2 billion ($354 million), 8.6 billion ($331 million) and 6.3 billion ($243 million). NLMK's iron ore affiliate Stoilensky GOK during the year in question registered a 5.1 percent increase in its sale revenue, a 4.8 percent increase in its gross profit, a 2.7 percent increase in its operating profit and a 3.5 percent increase in its net profit year on year to Ruble 15.8 billion ($608 million), Ruble 10.4 billion ($ 400 million), Ruble 9.5 billion ($366 million), Ruble 7.5 billion ($289 million) respectively. The company's coke division, Altai-koks, saw a 7.9 percent decrease in its sales revenue, a 35.9 percent increase in its gross profit, a 213.6 percent increase in its operating profit. The respective figures in Rubles were 11.3 billion ($435 million), 2.8 billion ($ 108 million), 1.3 billion ($50 million). Meanwhile, the company's net profit rose 27-fold year on year to Ruble 642.7 million ($25 million) in 2006. NLMK and its member companies showed strong 2006 financial results due to a rise in the pricing environment, the company's officials said.