NLMK releases Q3 2008 RAS financial results

The Russian steelmaker Novolipetsk Steel (NLMK) has issued the third quarter 2008 Russian Accounting Standards (RAS) financial results for itself and its subsidiaries.
 
Accordingly, during the third quarter of 2008 NLMK's net profit increased by 98.2 percent to Ruble 30.681 billion (approx. $1.14 billion), while its operating profit rose by 14.6 percent to Ruble 28.53 billion (approx. $1.6 billion), both compared with same period last year. The company saw also an increase of 0.6 percent year on year in its gross profit revenue to Ruble 32.44 billion (approx. $1.20 billion), but a decrease of 34.5 percent in its revenue to Ruble 65.37 billion (approx. $2.43 billion) compared to Q3 2007.
 
During the period in question NLMK's subsidiary VIZ-Stal registered a slight decrease in its operating profit, of 0.4 percent year on year, to Ruble 3.00 billion (approx. $111.6 million), while its net profit increased by 8.8 percent year on year to Ruble 2.49 billion (approx $92.53 million). VIZ-Stal's gross profit and revenue increased respectively by 0.4 percent to Ruble 3.14 billion (approx. $116.7 million) and by 16.8 percent to Ruble 5.4 billion (approx. $200.67 million), both compared with the third quarter of 2007.
 
During the third quarter of 2008, revenues of NLMK's iron ore subsidiary Stoilensky GOK climbed by 18.5 percent to Ruble 6.07 billion (approx. $225.6 million), while its gross profit increased by 14.3 percent to Ruble 4.23 billion (approx. $157.19 million), both compared with Q3 2007. Stoilensky GOK also registered an increase of 14.4 percent in its operating profit and a rise of 11.1 percent in its net profit compared with the same period last year, respectively to Ruble 3.98 billion (approx. $147.9 million) and Ruble 3.24 billion (approx. $120.4 million).
 
Altai-koks' revenue for the period in question amounted to Ruble 10.37 billion (approx. $385.3 million), which is an increase of 47.7 percent on last year, while its net profit upped by 130.1 percent year on year to Ruble 1.71 billion (approx. $63.54 million).
 
During the third quarter of 2008, NLMK's subsidiary NSMMZ increased its revenue by 9.6 percent to Ruble 12.90 billion (approx. $479.37 million), while its net profit decreased by 48.8 percent to Ruble 2.39 billion (approx. $88.8 million), both compared with the same period last year.
 
According to the release, in Q4 2008, NLMK expects a significant decrease in its financial results due to a lower steel demand and a weaker pricing environment caused by the global financial crisis.