The Russian steelmaker Novolipetsk Steel (NLMK) has released its financial results for 2006 under US GAAP.
Accordingly, during the year in question, NLMK's revenue increased by 38 percent to $6 billion, its gross profit increased by 45 percent to $ 2.97 billion, its operating income rose by 22 percent to $2.43 billion, its EBITDA went up by 26 percent to $2.6 billion, and its net profit increased by 50 percent to $2 billion. In addition, the company's EBITDA margin decreased from 48 percent in 2005 to 44 percent in 2006.
Commenting on the 2006 results, NLMK's chairman Mr. Vladimir Lisin stated, "In 2006, NLMK once again demonstrated outstanding financial performance. .... NLMK's investment in modernization and the expansion of its production facilities have resulted in growth in production volumes and the further strengthening of NLMK's key competitive advantage as one of the lowest cost steel producers in the world. NLMK's targeted efforts at extending its vertical integration have enabled the company to raise its level of raw material self-sufficiency and increase its production of high value-added products. These efforts have manifested themselves in improving financial results and a growing market capitalization - sound evidence of the successful implementation of the company's growth strategy."